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:

SCHRAMM DRILL RIG INJECTION PUMP CAT PUMP MODEL 25233000 NEW
SCHRAMM DRILL RIG INJECTION PUMP CAT PUMP MODEL 25233000 NEW
$3,500.00
15890 NEW INSANE MASSIVE 200+ LBS PDC OIL RIG DRILL BIT CS616N6 DD 2508 MM
15890 NEW INSANE MASSIVE 200+ LBS PDC OIL RIG DRILL BIT CS616N6 DD 2508 MM
$6,866.30
Vintage IADC Petroleum Classroom Work Books Drilling Rig Roughneck Gas Pipeline
Vintage IADC Petroleum Classroom Work Books Drilling Rig Roughneck Gas Pipeline
$30.00
Vintage Oilfield Oilwell Roughneck Drilling Rig NL Baroid Matches Lighter
Vintage Oilfield Oilwell Roughneck Drilling Rig NL Baroid Matches Lighter
$15.00
Oilfield Elevator Oil Drill Rig Bit keychain drillbit Pendant roughneck sticker
Oilfield Elevator Oil Drill Rig Bit keychain drillbit Pendant roughneck sticker
$12.79
3 8 x 10 photos of an oil drilling rig burning down
3 8 x 10 photos of an oil drilling rig burning down
$15.99
Drill bit for water well drilling rigs Drag bit 180 mm 4 blades
Drill bit for water well drilling rigs Drag bit 180 mm 4 blades
$184.00
1983 Dresser T70 W Hydraulic Top Drive Drilling Rig
1983 Dresser T70 W Hydraulic Top Drive Drilling Rig
$285,000.00
Water Well Drilling Rig Bit Deep Rock Driller Carbide DIY Drill Equipment Bit 8
Water Well Drilling Rig Bit Deep Rock Driller Carbide DIY Drill Equipment Bit 8
$178.00
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
PDC Oil Drill Rig Bit keychain drillbit Pendant oilfield trash roughneck sticker
PDC Oil Drill Rig Bit keychain drillbit Pendant oilfield trash roughneck sticker
$21.00
2007 GEFCO SPEEDSTAR 185K DRILL RIG DRILLING PACKAGE TOP HEAD DRIVE 185000 LBS
2007 GEFCO SPEEDSTAR 185K DRILL RIG DRILLING PACKAGE TOP HEAD DRIVE 185000 LBS
$525,000.00
2006 SCHRAMM T130XD Drill Rig HEAVY HOIST TOP DRIVE MTU DETROIT DDC1MTU
2006 SCHRAMM T130XD Drill Rig HEAVY HOIST TOP DRIVE MTU DETROIT DDC1MTU
$380,000.00
1980 Ingersoll Rand T4W Drill Rig IR 900 CFM 300 PSI Air Compressor Detroit
1980 Ingersoll Rand T4W Drill Rig IR 900 CFM 300 PSI Air Compressor Detroit
$125,000.00
2005 Ingersoll Rand T3W Drill Rig 1070 cfm 350 psi Air Compressor Caterpillar C
2005 Ingersoll Rand T3W Drill Rig 1070 cfm 350 psi Air Compressor Caterpillar C
$325,000.00
Tongs keychain Oil Well Jewelry oilfield trash sticker Drill Bit Rig tricone
Tongs keychain Oil Well Jewelry oilfield trash sticker Drill Bit Rig tricone
$12.89
2 Pc 11 4 Set Water Well Drilling Bits DIY ers Drilling Rig Bits
2 Pc 11 4 Set Water Well Drilling Bits DIY ers Drilling Rig Bits
$269.00
1 1 4 X 3 Pilot Bit Water Well Drilling Bit DIY ers Drilling Rig Bit
1 1 4 X 3 Pilot Bit Water Well Drilling Bit DIY ers Drilling Rig Bit
$149.00
New Drilling Rig Rotating Head Stripper PN 20180551N 4 hole
New Drilling Rig Rotating Head Stripper PN 20180551N 4 hole
$199.00
Tricone Oilfield Drillbit Pendant Keychain Oil drill rig bit well gift stickers
Tricone Oilfield Drillbit Pendant Keychain Oil drill rig bit well gift stickers
$16.99
1978 mobiledrill well drilling rig
1978 mobiledrill well drilling rig
$60,000.00
Water Well Geothermal Drill Rig Pump Drilling Equipment Deep Rock Driller DIY
Water Well Geothermal Drill Rig Pump Drilling Equipment Deep Rock Driller DIY
$16,400.00
Well Drilling Equipment Drill Rig Deep Rock Boring Machine DIY Water Well Drill
Well Drilling Equipment Drill Rig Deep Rock Boring Machine DIY Water Well Drill
$4,800.00
Well Drilling Rig Water Well Drilling Equipment Drill Machine DIY Driller Tool
Well Drilling Rig Water Well Drilling Equipment Drill Machine DIY Driller Tool
$4,100.00
Drilling Rig Mast Derrick
Drilling Rig Mast Derrick
$45,000.00
ANATOMY of a RIG MARATHON CLASS 116 CANTILEVER JACKUP DRILLING RIG MARATHON
ANATOMY of a RIG MARATHON CLASS 116 CANTILEVER JACKUP DRILLING RIG MARATHON
$550.00
5 Water Well Drilling Bits DIY ers Drilling Rig Bits
5 Water Well Drilling Bits DIY ers Drilling Rig Bits
$159.00
5 Drilling Rig Bits And Water Swivel
5 Drilling Rig Bits And Water Swivel
$399.00
Oil well Derrick Rig Keychain drill Bit Oilfield trash Jewelry roughneck tricone
Oil well Derrick Rig Keychain drill Bit Oilfield trash Jewelry roughneck tricone
$20.00
Oilfield Oil Well Derrick Drill Rig Gold Model w gas roughneck drillbit keychain
Oilfield Oil Well Derrick Drill Rig Gold Model w gas roughneck drillbit keychain
$135.00
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
$79.00
Red Rubber Steel Plates Dust Rod Pipe Wiper Drill Rig Atlas Copco Ingersoll Rand
Red Rubber Steel Plates Dust Rod Pipe Wiper Drill Rig Atlas Copco Ingersoll Rand
$145.00


Recently Purchased Drill Rig:


5 drilling rig bits and water swivel, 5 water well drilling bits diy ers drilling rig bits, rare oil drilling offshore drilling rigs houston texas drilling rigs scuba sea, well drilling rig water well drilling equipment drill machine diy driller tool , well drilling equipment drill rig deep rock boring machine diy water well drill, water well drilling rig bit deep rock driller carbide diy drill equipment bit 8, water well drilling rig drill machine pump driller hydraulic boring equipment, water well geothermal drill rig pump drilling equipment deep rock driller diy, 1 14 x 3 pilot bit water well drilling bit diy ers drilling rig bit, rare vintage illustration by frank chapman williams spring pole drilling rig, rare vintage illustration by frank chapman williams 1949 chinese drilling rig, 2 pc 114 set water well drilling bits diy ers drilling rig bits, vintage oilfield oilwell roughneck drilling rig nl baroid matches lighter, vintage iadc petroleum classroom work books drilling rig roughneck gas pipeline, water well drill rig stardrill 3line cable tool ready to drill tools , 3 8 x 10 photos of an oil drilling rig burning down, novhydra rig 125 160sb 74p coiled tubing drilling equipment chain cc310155c74, new atlas copco 57560252 spur gear rotary head ingersollrand t4w drill t4bh rig, atlas copco 26 57731713 seal kit drill rig rotary well drilling rock blasting hu, bj air slips; drill pipe collar rig handling tools hydraulic drilling sd stabili, new 57125205 console cover ingersollrand t3w atlas copco th60 drill rig control, atlas copco 50595115 funk box input shaft drill rig hydraulic valve pump motor w, ingersollrand 52263159 winch 2500 lb s0046l drill rig hydraulic valve pump moto, 33590209a slip guide 1200 x 8 for schramm t130xd drill rig centralizer bushin, inner barrel wrench nwl; core barrel rock coring drill rig drilling conventional, atlas copco ingersollrand 57668485 valve assembly 11 spool rd20 drill rig 57668, ingersollrand double pump 57058356vt6ccmb22 b14 drill rig hydraulic valve moto, ingersollrand hr2 39919485 bronze silicon rotary seal drill rig air compressor , 57100042 cylinder atlas copco ingersollrand hydraulic rd20 jib boom drill rig , 50518984 flow control valve drill rig hydraulic valve pump motor rd20 atlas copc, mud pump pressure gauge n 01000 5 x 6 gardner denver drill rig well driller ro, atlas copco 58036260 air valve drill rig doosan air compressor ingersollrand dr, nwj drill rods 250 x 5 ft; drill rig well drilling steel pipe tube acker boar, new ingersollrand hr25 1050 cfm 350 psi air end t4w t3w rd20 drill rigs portab, sprague amp; henwood pt166 core drilling package rock coring drill rig deutz 335 , mobile b24 surveyor drilling package rock core drill rig high speed coring head, ingersollrand th60 drill rig atlas copco drilling 256sds leroi 500 cfm 125 psi , 1988 canterra ct550 drill rig; geothermal water well drilling cheap foremost mob, 2005 cat c18 diesel engine caterpillar power unit industrial truck drill rig air, ingersollrand 750 cfm 250 psi air end; atlas copco doosan drill rig compresso, ingersollrand dm45 drive motor m7g3n1am200570 drill rig hydraulic valve pump , 1997 airxchanger 93 ah air cooler trailer mounted; compressor drill rig power , driltech d25 crawler track drill rig cat 3306 diesel engine 150 psi air compress, bj bts hydraulic power tongs mud rotary well drilling rig water oil gas pipe fai, 2002 sullair 900 cfm500 psi air compressor driltech drill rig ghh atlas copco i, skytop brewster rsh 18 x 44 rotary table split master bushing drill rig mud dr, schramm t64hb drill rig for parts or rebuild; t66 hydraulic rotadrill drilling r, sullair 1150 cfm350 psi air compressor driltech drill rig ghh atlas copco inger, schramm t130 head motors t130xd rebuilt 29990096r hydraulic drill rig 120101, oil country hydraulic power tongs drill rig rotary well driller driltech failing



Comments are closed.