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:

OPEN SIDE BLOCK OIL WELL WINCH TRUCK DRILL RIG
OPEN SIDE BLOCK OIL WELL WINCH TRUCK DRILL RIG
$40.00
large lot drill rig water well drilling geothermal oilfield hydraulic equipment
large lot drill rig water well drilling geothermal oilfield hydraulic equipment
$5,250.00
DeepRock  Stealth M 50 Prepper Water Well Drilling Rig  Free Shipping lower 48
DeepRock Stealth M 50 Prepper Water Well Drilling Rig Free Shipping lower 48
$10,326.00
Gardner Denver 1500 Water Well Drilling Rig work over rig 1000ft of drill pipe
Gardner Denver 1500 Water Well Drilling Rig work over rig 1000ft of drill pipe
$125,000.00
Ingersoll Rand T4W Drilling Rig
Ingersoll Rand T4W Drilling Rig
$249,000.00
Vintage Conoco Phillips Bronze Sculpture Offshore Oil Rig Drilling Well Platform
Vintage Conoco Phillips Bronze Sculpture Offshore Oil Rig Drilling Well Platform
$3,000.00
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
Water well drilling rig
Water well drilling rig
$18,000.00
Cyclone 35 R water well drill rig
Cyclone 35 R water well drill rig
$24,000.00
Deeprock  Super HD55 Water Well Drilling Rig  Discounted Shipping
Deeprock Super HD55 Water Well Drilling Rig Discounted Shipping
$3,890.00
10 HAMMER BIT SD6 SHANK HEAD CONCAVE FACE DOMED BUTTONS ROCK DRILLING RIG 4315
10 HAMMER BIT SD6 SHANK HEAD CONCAVE FACE DOMED BUTTONS ROCK DRILLING RIG 4315
$750.00
Gravel Valve Seat 5 X 6 Gardner Denver Duplex Mud Pump 5X6GRVLSEAT drilling rig
Gravel Valve Seat 5 X 6 Gardner Denver Duplex Mud Pump 5X6GRVLSEAT drilling rig
$39.95
Schramm Air Compressor Radiator Cover Shield emblem logo drill rig memorbalia
Schramm Air Compressor Radiator Cover Shield emblem logo drill rig memorbalia
$250.00
6 1 8 6125 Hammer Bit QL60 Shank DTH Well Drilling Drill Rig Halco Rock Numa
6 1 8 6125 Hammer Bit QL60 Shank DTH Well Drilling Drill Rig Halco Rock Numa
$650.00
HOPPER GXXTA D D Back In Well Service Rig drill drilling rig mud pump air compre
HOPPER GXXTA D D Back In Well Service Rig drill drilling rig mud pump air compre
$150,000.00
5X6Liner 5 Sleeve Liner 5 X 6 Gardner Denver mud pump rotary drill rig fluid
5X6Liner 5 Sleeve Liner 5 X 6 Gardner Denver mud pump rotary drill rig fluid
$164.00
OilWell 6P HD Duplex 4x6 Mud Pump Gardner Denver Triplex Rotary Drill Rig GASO
OilWell 6P HD Duplex 4x6 Mud Pump Gardner Denver Triplex Rotary Drill Rig GASO
$15,000.00
WHEATLEY DUPLEX 6 x 6 MUD PUMP rotary drilling water well transfer drill rig
WHEATLEY DUPLEX 6 x 6 MUD PUMP rotary drilling water well transfer drill rig
$20,000.00
Sub Adapter 2 7 8 IF Box x 3  Reg API thread tool joint drill rig drilling
Sub Adapter 2 7 8 IF Box x 3 Reg API thread tool joint drill rig drilling
$285.00
Lifting Bell 3  Regular API tool joint thread lifter drilling rig rod steel c
Lifting Bell 3 Regular API tool joint thread lifter drilling rig rod steel c
$75.00
Sub Adapter 3  Regular API Pin Box Tool Joint Drill Steel Rod Drilling Rig Cou
Sub Adapter 3 Regular API Pin Box Tool Joint Drill Steel Rod Drilling Rig Cou
$380.00
Skytop Brewster 20 X 44 Rotary Table Ideco rotary mud pump drilling drill rig
Skytop Brewster 20 X 44 Rotary Table Ideco rotary mud pump drilling drill rig
$9,500.00
OPERATOR CAB seat blasthole drill rig Ingersoll Rand Atlas Copco Drilling DM45E
OPERATOR CAB seat blasthole drill rig Ingersoll Rand Atlas Copco Drilling DM45E
$1,500.00
QL60 DTH Hammer Drill Bit 6 1 8 Diamond Gauge TCI Atlas Copco Well Drilling Rig
QL60 DTH Hammer Drill Bit 6 1 8 Diamond Gauge TCI Atlas Copco Well Drilling Rig
$550.00
INGERSOLL RAND 50428630 DRILL RIG TOWER RAISING CYLINDER ATLAS COPCO 57621948
INGERSOLL RAND 50428630 DRILL RIG TOWER RAISING CYLINDER ATLAS COPCO 57621948
$1,500.00
6 1 4 625 Hammer Bit QL60 Shank DTH Well Drilling Drill Rig SF6 360 SD6 Halco
6 1 4 625 Hammer Bit QL60 Shank DTH Well Drilling Drill Rig SF6 360 SD6 Halco
$595.00
Driltech D25 Drill Rig D40K D25K T25K blasthole mining water well drilling Sull
Driltech D25 Drill Rig D40K D25K T25K blasthole mining water well drilling Sull
$65,000.00
Gaso 1700 Duplex Mud Pump Wheatley Gardner Denver 5x6 drill rig water transfer
Gaso 1700 Duplex Mud Pump Wheatley Gardner Denver 5x6 drill rig water transfer
$1,700.00
5X6 Gear Drive Stuff Box Gland FG21 A Gardner Denver Duplex Mud Pump drill rig
5X6 Gear Drive Stuff Box Gland FG21 A Gardner Denver Duplex Mud Pump drill rig
$85.00
Lifting Plug 3  Regular API Pin Drill Pipe Nubbin bail bell Drilling Rig steel
Lifting Plug 3 Regular API Pin Drill Pipe Nubbin bail bell Drilling Rig steel
$99.00
Sub Adapter 3  BECO Pin API Box drill pipe steel rod thread drilling rig strin
Sub Adapter 3 BECO Pin API Box drill pipe steel rod thread drilling rig strin
$235.00
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


Recently Purchased Drill Rig:


in the days of 49 photocopied national supply company oil drilling rig details, drill rig oil gas water well bit 3 12 pdc 35 marcellus shale bakken, open side block oil well winch truck drill rig, 8 tall one of a kind brass drilling rig sculpture , well drilling rig, cyclone 35r water well drill rig, large lot drill rig water well drilling geothermal oilfield hydraulic equipment, vintage conoco phillips bronze sculpture offshore oil rig drilling well platform, drill bit for water well drilling rigs 150mm 4blades, gardner denver 1500 water well drilling rig work over rig 1000ft of drill pipe, drill bit for water well drilling rigs 200 mm, drill bit for water well drilling rigs 180 mm, drill bit for water well drilling rigs 150 mm, drill bit for water well drilling rigs 100 mm, water well drilling rig, ingersollrand ql60p dth hammer air rotary rock drill rig atlas copco ql60 bit c, deeprock manufacturing company advertising brochure drill rig memorbalia drillin, 03613221 piston ingersollrand ecm350 cm351 vl140 vl140 rock drill rig track c, gill rock drill company specifications sheet beetle rig memorbalia drilling , excavator crawler drill rig undercarriage tracks rollers sprockets; caterpil, deeprock dr 100 rotary air mud specifications sheet drill rig memorbalia brochur, table bushing drill pipe centralizer slips dth hammer steel rod drilling rig par, dth hammer drill 778 diamond ir dhd 380 sf8 well drilling rig rock water oil, ingersollrand atlas copco drill rig 50341924 single handle morris control ch521, 1996 ingersollrand t4w drill rig hr25 1250 cfm350 psi air compressor cummins, dth hammer bit ql120 shank 1334 head concave ql12 drill rig well drilling, gill rock drill beetle rig memorbalia drilling literachure advertising brochure , drill rig toolbox storage box cabinet ingersollrand t4w atlas copco rd20 crane, ql120 dth hammer diamond drill bit 1238 rock drilling rig perforacin de pozo, numa 100 n100 dth hammer drill bit unknown shank dhd rock drilling rig sd12 ql12, sandvik t25kw well drill rig brochure driltech 25 water well drilling catalogue , rupe mud pump deeprock specifications sheet drill rig memorbalia drilling litera, drillmax 350 max350 specifications sheet drill rig memorbalia drilling literachu, deeprock commercial drill division specifications sheet drilling rig literachure, dth hammer drill bit ql80 shank 778 head concave face tci diamond buttons rig, ql60 dth hammer drill bit 6132 diamond gauge tci ingersollrand drilling rig, deeprock dr150 specifications sheet drill rig memorbalia drilling literachure ad, unused twin disc techno drive rm 150 pto clutch schramm drill rig deutz diesel, sd8 dth hammer holeopener rock drilling bit 814 sandvik 334 well drill rig , hydraulic power tongs drill rig pipe rotary slips casing spinner dencon spears f, jpm 716 3m c7 mud pump tee valve rotary drilling drill rig high pressure air , 7 casing elevator sd casing elevator wilson bj side door well drilling rig spid, lot drill rig compressor parts components ingersollrand t4w filter base cylinde, drillmax max 250 specifications sheet drill rig memorbalia drilling , s27 sonic drill us expolrattion rig geothermal seismic enviromental brochure, cooling fan blade shround hydraulic oil air cooling drill rig parts compressor , drill rig storage box ingersollrand t4w atlas copco rd20 fuel tank ccc water, sandvik dw330 well drill specifications sheet driltech rig memorbalia drilling l, cme augers specifications sheet drill rig memorbalia central mine equipment holl, hd engineering ltd hd180b hydraulic crawler specifications sheet drill rig memo



Comments are closed.