Financial Models

This is a scalable financial model for starting up your own apple orchard and it has the ability to do a forecast for up to 50 years if necessary. Much of the assumptions are right on the same tab as the pro forma for easier use and there are up to eight potential slots to account for an expansion of acres used. The new revenue and additional capex that comes with each expansion automatically flows through cash flow.

The pro forma view on this model is annualized only. Outputs include a final return summary that looks at the IRR of the entire project, ROI and annualized ROI, cash flow visualization (cumulative), and total cash returned. The visual is nice because it allows the user to see when there has been enough cash returned to cover the initial investment. Other general assumptions include the years it takes until the orchard is ready for harvest (it can take 2-3 years before a brand new orchard is able to yield commercially viable fruit). Also, there is an input for the number of expected harvests per year. The user can configure the percentage of fruit that is viable as well once yields begin. Other assumptions included expected sell price per pound and average pounds per bushel. Many of the cost configurations are automated and can be defined by the user fairly easily. These include fuel, packaging, sanitation, honey bee hives (for better pollination), advertising, fencing, and staff.