Assumptions:

Annual milk production

Price per liter of milk
Annual feeding costs of an F1 cow
Rearing cost before commencement of milk
Time to milk production from birth
Time in milk production
Culled value at the end of 5 years
Discount rate
Karachi Interbank official rate
Number of F1 cows (milking) as at 30 June 2010

Income approach (DCF)

Per F1 cow

Reporting Dates Cash inflow

30-Jun-10 168,000
30-Jun-11 168,000
30-Jun-12 168,000
30-Jun-13 168,000
30-Jun-14 318,000
Cash Inflows for yr1-4 Annual Milk Production x Price pe
Cash Inflows for yr 5 (Annual Milk Production x Price pe
Cash outflow for yr 1 Annual feeding costs of an F1 cow
Cash outflow for yr 2-5 Annual feeding costs of an F1 cow

Labeling Market/Region
A Bahawalpur
B Australia
C USA

Note: AI doses are imported from United States.

 Income Approach

4,200 liters
40 Rs. per liter
100,000 Rs.
66,000 Rs.
26 months
5 years
150,000 Rs.
20%
12%
11

Cash outflow Net cash flow

166,000 2,000
100,000 68,000
100,000 68,000
100,000 68,000
100,000 218,000
duction x Price per liter of milk
duction x Price per liter of milk) + culled value at end of 5 yrs
costs of an F1 cow + Rearing cost before commencement of milk
costs of an F1 cow

Market approach (adjusted)

Min Max Avg
50,000 65,000 57,500
275,000 325,000 300,000
350,000 400,000 375,000
moderate high transport costs and mortali
 Management derived value of each F1 cow at 30 June 2010
Cost model 190,000
DCF 210,000

NPV using Karachi Interbank Rate $271,310.24

NPV using Discount Rate 20% $208,643.26
NPV using Discount Rate 25% $179,223.04

)
Combination Mkt adj price
AB 178,750
AC 216,250
BC 337,500
gh transport costs and mortality rate
June 2010