Project Cost

Weightage
Debt
Equity
Cost
Interest - Debt
Cost of Equity

10,000,000 Fixed Asset, Gross

55%
45%
15%
25% discount rate

Project cost is incurred in 0th period

Asset recognised worth the project cost with a useful life of 4 years and 0 salvage value
Depreciation as per Company ACT 25%
Evaluate the business proposal using NPV and IRR.
Drivers
Sales Price/Unit
Cost Price/Unit
Quantity

Year - 1

Opex
Tax Rate
Working Capital requirement

Loan repayment happens at end of period

Years
Repayment Schedule

Interest rate on surplus cash

Growth - y/y

3750
2750
25000

10%
10%
5%

20% <== of revenues

30% <== applicable on PBT
4% <== of revenues

Year-1
500,000

12%

et, Gross

ars and 0 salvage value

SLM

licable on PBT

Year-2
1,000,000

Year-3
1,500,000

<== compute on beginning cash value

Year-4
2,500,000

Year - 0

Year - 1

Year - 2

Drivers
Sales Price / Unit
Cost Price / Unit
Volume (qty)

3,750
2,750
25,000

4,125
3,025
26,250

Year - 3

4,538
3,328
27,563

Year - 4

4,991
3,660
28,941

Year - 0

Year - 1

Year - 2

Income Statement
Revenue
Costs
Gross Profit

93,750,000
68,750,000 25,000,000

108,281,250
79,406,250
28,875,000

Operating Costs
EBITDA

18,750,000 6,250,000

21,656,250
7,218,750

Depreciation
EBIT

2,500,000 8,750,000

2,500,000
9,718,750

Interest Expense
Interest Income
EBT

825,000 7,925,000

750,000
455,700
9,424,450

Tax Expense
PAT / Net Income

2,377,500 5,547,500

2,827,335
6,597,115

Year - 3

Year - 4

125,064,844
91,714,219 33,350,625

144,449,895
105,929,923
38,519,972

25,012,969 8,337,656

28,889,979
9,629,993

2,500,000 10,837,656

2,500,000
12,129,993

600,000 1,357,604
11,595,260

375,000
2,371,044
14,126,037

3,478,578 8,116,682

4,237,811
9,888,226

Year - 0

Year - 1

Year - 2

Balance Sheet
Cash
Working Capital
PPE, Gross (Fixed Asset)
Accumulated Depreciation
PPE, Net
Total Assets
Debt
Equity
Retained Earning
Total Liabilities & Sh Equity
check

10,000,000
10,000,000
10,000,000
5,500,000
4,500,000
10,000,000
-

3,797,500
3,750,000
10,000,000
2,500,000
7,500,000
15,047,500

11,313,365
4,331,250
10,000,000
5,000,000
5,000,000
20,644,615

5,000,000
4,500,000
5,547,500
15,047,500
-

4,000,000
4,500,000
12,144,615
20,644,615
-

Year - 3

Year - 4

19,758,703
5,002,594
10,000,000
7,500,000
2,500,000
27,261,297

28,871,527
5,777,996
10,000,000
10,000,000
34,649,523

2,500,000
4,500,000
20,261,297
27,261,297
-

4,500,000
30,149,523
34,649,523
-

Year - 0

Year - 1

Year - 2

Cash Flow Statement

Net Income / PAT
Add: Depreciation
Less:Working Capital Change
Cash flow from Operations (CFO)
Purchase of Asset
Cash flow from Investing (CFI)
Debt Raised / (Repaid)
Equity Raised
Cash flow from Financing (CFF)

- 10,000,000
- 10,000,000
5,500,000 4,500,000
10,000,000 -

5,547,500
2,500,000
3,750,000 4,297,500
500,000 500,000 -

6,597,115
2,500,000
581,250
8,515,865
1,000,000
1,000,000

Net Cash change (CFO + CFI + C

3,797,500

7,515,865

Cash - BOP
Cash - EOP

3,797,500

3,797,500
11,313,365

Year - 3

Year - 4

8,116,682
2,500,000
671,344 9,945,338
-

9,888,226
2,500,000
775,402
11,612,824
-

1,500,000 1,500,000 -

2,500,000
2,500,000

8,445,338

9,112,824

11,313,365
19,758,703

19,758,703
28,871,527

Year - 0

Year - 1

Year - 2

Returns
Cost of Equity
Free Cash Flow
NPV
IRR

25.00%
(10,000,000)
17,776,630
91.72%

3,797,500

11,313,365

Year - 3

19,758,703

Year - 4

28,871,527

DEBT Schedule
Year 0
BOP
Interest
principal repaid
EOP

Year 1
0
0
0
5500000

Year2
5500000
5000000
825000
750000
500000
1000000
5000000
4000000

Year 3
Year 4
4000000
2500000
600000
375000
1500000
2500000
2500000
0