Drill Rig

How do we calculate IRR with depreciated value of equipment over 10 years period?

This is regarding a drilling rig we want to hire. The Contractor needs to invest $36 million for buying the new rig. Supposing 15% residual value remains after 10 years period then how do we calculate IRR and what is the significance of having 12% & 10% IRR. Contractor has shown following annual values in a table for 10 years - Revenue, cash cost, operating cash flow (Revenue-cash cost), Rig capex, Working Capital & cumulative cash flow (rig Capex+working capital - annual cash flow). These have been worked out for 10 years and rig capex reduces by 85% in 10 years time. Contractor has calculated IRR with these figures. But how is not known to us.
Your help in understanding this concept would be highly appreciated.

Way too complicated for an answer here, me thinks. Spend the cash for a good CPA or Comptroller.

Find Drill Rig On eBay Below:

5 Water Well Drilling Bits DIY ers Drilling Rig Bits
5 Water Well Drilling Bits DIY ers Drilling Rig Bits
$169.00
Water Well Drilling Rig Pump Driller Borehole Drill Equipment DIY Tool Rock Bit
Water Well Drilling Rig Pump Driller Borehole Drill Equipment DIY Tool Rock Bit
$5,800.00
HDD Puller HDD6 Directional Drill Rig Swivel
HDD Puller HDD6 Directional Drill Rig Swivel
$650.00
Well Drilling Rig Drill Equipment Driller Tool Deep Rock Boring Clean Water Pump
Well Drilling Rig Drill Equipment Driller Tool Deep Rock Boring Clean Water Pump
$4,800.00
Water Well Drilling Rig Speedstar SS15 1980 model 1500ft rated casing hammer
Water Well Drilling Rig Speedstar SS15 1980 model 1500ft rated casing hammer
$64,700.00
Fecon GL300 geothermal water well rubber track drilling rig
Fecon GL300 geothermal water well rubber track drilling rig
$35,000.00
water well drilling rig
water well drilling rig
$7,200.00
5 Tricone Drill Bit Oil Rig Used Drillbit Well
5 Tricone Drill Bit Oil Rig Used Drillbit Well
$69.99
9 Tricone Drill Bit Oil Rig Used Drillbit Well
9 Tricone Drill Bit Oil Rig Used Drillbit Well
$149.00
Water Well Drilling Machine Geothermal Drill Rig Pump Driller DIY Equipment NEW
Water Well Drilling Machine Geothermal Drill Rig Pump Driller DIY Equipment NEW
$12,400.00
PDC drill bit keychain pendant oilfield tricone gas oil well rig roughneck gift
PDC drill bit keychain pendant oilfield tricone gas oil well rig roughneck gift
$48.00
Water Well Drilling Rig Drill Machine Pump Driller Hydraulic Boring Equipment
Water Well Drilling Rig Drill Machine Pump Driller Hydraulic Boring Equipment
$6,800.00
Well Drilling Rig Water Well Drilling Equipment Drill Machine DIY Driller Tool
Well Drilling Rig Water Well Drilling Equipment Drill Machine DIY Driller Tool
$3,600.00
Acker AD2 Auger drill rig 0n a 1990 mack midliner ready to work
Acker AD2 Auger drill rig 0n a 1990 mack midliner ready to work
$30,000.00
PULLING RIG SERVICE WORK CABLE TOOL DRILL RIG 3 LINE RIG BUCYRUS ERIE 24L
PULLING RIG SERVICE WORK CABLE TOOL DRILL RIG 3 LINE RIG BUCYRUS ERIE 24L
$15,000.00
1983 Dresser T70 W Hydraulic Top Drive Drilling Rig
1983 Dresser T70 W Hydraulic Top Drive Drilling Rig
$185,000.00
Deeprock  Super HD55 Water Well Drilling Rig  Discounted Truck Shipping
Deeprock Super HD55 Water Well Drilling Rig Discounted Truck Shipping
$2,125.00
Schramm Drilling Rig CABLE ASY 175 X 434 LG Clevis Both Ends
Schramm Drilling Rig CABLE ASY 175 X 434 LG Clevis Both Ends
$649.00
Schramm Drilling Rig Cable Assembly 175 x 448 Clevis Both Ends
Schramm Drilling Rig Cable Assembly 175 x 448 Clevis Both Ends
$649.00
Deeprock Hydra Drill Water Well Drilling Rig USA
Deeprock Hydra Drill Water Well Drilling Rig USA
$1,999.99
schramm 985 drill rig
schramm 985 drill rig
$25,000.00
NEDDRILL Ceramic Coasters Drilling Ship Rig OIl Gas Maritime Barware North Sea
NEDDRILL Ceramic Coasters Drilling Ship Rig OIl Gas Maritime Barware North Sea
$99.98
USED SNAP TITE RDV22 T2P 15V DRILL RIG HYDRAULIC AIR COMPRESSOR
USED SNAP TITE RDV22 T2P 15V DRILL RIG HYDRAULIC AIR COMPRESSOR
$84.00
Drill Rig
Drill Rig
$45,000.00
30 x 6 1 2 4 1 2 IF Drill Collars Drilling Rig Pipe Stabilizer Sub Adapter B
30 x 6 1 2 4 1 2 IF Drill Collars Drilling Rig Pipe Stabilizer Sub Adapter B
$900.00
Diedrich D 50 Drill Rig
Diedrich D 50 Drill Rig
$87,500.00
Oilfield Trash Drill bit Rig Power Tong Keychain Jewelry Roughneck oil sticker
Oilfield Trash Drill bit Rig Power Tong Keychain Jewelry Roughneck oil sticker
$21.00
HOWARD HUGHES DRILLING RIG US PATENT Art Print READY TO FRAME oil mine drill
HOWARD HUGHES DRILLING RIG US PATENT Art Print READY TO FRAME oil mine drill
$9.99
1988 driltech 25k water well drilling rig
1988 driltech 25k water well drilling rig
$90,000.00
Oilfield Trash Oil well gas pump roughneck sticker decal gift drill bit rig pdc
Oilfield Trash Oil well gas pump roughneck sticker decal gift drill bit rig pdc
$2.50
Drill bit for water well drilling rigs Drag bit 7 1 8 180mm
Drill bit for water well drilling rigs Drag bit 7 1 8 180mm
$288.00
Drill bit for water well drilling rigs Drag bit 4 3 8 112mm
Drill bit for water well drilling rigs Drag bit 4 3 8 112mm
$193.00


Recently Purchased Drill Rig:


pulling rig service work cable tool drill rig 3 line rig bucyrus erie 24l , acker ad2 auger drill rig 0n a 1990 mack midliner ready to work, antique well drilling rig ingersoll rand, water well drilling rig drill machine pump driller hydraulic boring equipment, well drilling rig international cummins with chevrolet water truck, 9 tricone drill bit oil rig used drillbit well, 5 tricone drill bit oil rig used drillbit well , drill rig , fecon gl300 geothermal water well rubber track drilling rig, water well drilling rig speedstar ss15 1980 model 1500ft rated casing hammer, vintage fwd portable test drill rig cuts cost on foundation exploration, well drilling rig water well drilling equipment drill machine diy driller tool , water well drilling rig pump driller borehole drill equipment diy tool rock bit, water well drilling machine geothermal drill rig pump driller diy equipment new, well drilling rig drill equipment driller tool deep rock boring clean water pump, 5 water well drilling bits diy ers drilling rig bits, deeprock m50 prepper water well drilling rig , deeprock bobcat waterwell drilling rig proseries 2017 model made in usa, diedrich d50 drill rig, 30 x 612 412 if drill collars; drilling rig pipe stabilizer sub adapter b, drill rig, neddrill ceramic coasters drilling ship rig oil gas maritime barware north sea, new drilling rig rotating head stripper pn 20180551n 4 hole, hdd puller hdd6 directional drill rig swivel, drilling rig derrick and trailer, ideco telescoping double drilling rig with cat 3406 and cat d379 diesel engines, deeprock hydradrill water well drilling rig usa, tricone oilfield drillbit pendant keychain oil drill rig bit well gift sticker, new style cnooc 981 offshore well rig drilling platform model xingwang , schramm 985 drill rig, 1983 dresser t70 w hydraulic top drive drilling rig, 2003 beretta alfredo t 41 hatz diesel drilling rig, 2006 beretta alfredo t25 diesel track drilling rig drill, commemorative edition cnpc 981 offshore well rig drilling platform model , diedrich d25 track drill rig environmental geotechnical exploration water, swivel for water well drilling rigs, water drilling rig, new good cnpc 981 offshore well rig drilling platform model , drill rig environmental auger mobile b53 well drilling, deeprock dr150 drill rig, drill bit for water well drilling rigs drag bit 512 140mm, drill bit for water well drilling rigs drag bit 378 100mm, drill bit for water well drilling rigs drag bit 478 125mm, drill bit for water well drilling rigs drag bit 778 200mm, drill bit for water well drilling rigs drag bit 438 112mm, drill bit for water well drilling rigs drag bit 718 180mm, schramm drilling rig cable assembly 175 x 448 clevis both ends, schramm drilling rig cable asy 175 x 434 lg clevis both ends, silver tricone drill bit pendant oilfield oil well jewlery gift sticker rig jack, drill bit for water well drilling rigs drag bit 614 160mm



Comments are closed.