SOFTWARE HOUSE PROJECT COST

PROJECT COST Rs.

CAPITAL INVESTMENT:
EQUIPMENT 3,332,500
FURNITURE & FIXTURE 1,887,000
MOTOR VEHICLES 3,265,000
PROJECT DEVELOPMENT COST 8,484,500
COPY RIGHTS-LICENSING & TRADE MARKS 161,500
OTHER EXPENSES 874,000
PRELIMINARY EXPENSE 1,035,500
CAPITAL INVESTMENT 9,520,000

WORKING CAPITAL:
CURRENT ASSETS
RECEIVABLES 5,692,960
ADVANCES TO EMPLOYEES 2,000,455
TOTAL CURRENT ASSETS 7,693,415

CURRENT LIABILITIES
UTILITIES PAYABLE 73,744
SALARY PAYABLE 895,000
TOTAL CURRENT LIABILITIES 968,744
NET WORKING CAPITAL 6,724,671
USE PROJECT COST
PROJECT DETAILS RS.
TOTAL PROJECT COST 16,244,671
PROJECT FINANCES STRATEGY
EQUITY (SPONSOR) --- 50% 8,122,335.5
DEBT (BANK) --- 50 % 8,122,335.5
NPV PKR 19,895,711.27
IRR 36.48%
PBP (YEARS) 3.79
 WACC 14.17%

Years CF PBP PBP (Years) NPV IRR

0 (16,244,671) - 3.79 PKR 19,895,711.27 36.48%
1 2,912,488 13,332,183
2 9,731,213 3,600,970
3 1,628,927 1,972,043
4 2,495,534 0.79
5 10,146,003
6 11,552,639
7 8,519,231
8 15,074,375
9 14,857,836
10 10,663,029
WACC ANALYSIS
Ks 16.34%
kd 16.00%
Tax 25.00%
kd 12.00%
debt 50.00%
equity 50.00%
WACC 14.17%
 Projected Income Statement

Year1 Year2 Year3 Year4

Export 4,339,743 7,456,468 11,308,977
Local 37,573,536 39,057,691 42,253,320 45,235,907
Total Revenues 37,573,536 43,397,434 49,709,788 56,544,884

Operating Expenses 31,972,238 35,655,986 36,402,742 44,564,784

Depriciation 1,614,925 1,200,496 915,516 2,174,155
Amortization of Deferred Cost 207,100 207,100 207,100 207,100
33,794,263 37,063,582 37,525,358 46,946,039

Profit before Tax and Interest 3,779,273 6,333,853 12,184,430 9,598,845

Interest on Long term Loan 1,288,744 1,245,425 1,202,106 1,158,786
Interest on short term Loan 941,454 941,454 0 0
Profit / (Loss) before Tax 1,549,075 4,146,974 10,982,324 8,440,059
Taxation 187,868 1,291,703 2,712,506 2,111,832
Profit after Tax 1,361,207 2,855,271 8,269,818 6,328,227

Projected Cash Flows

Year1 Year2 Year3 Year4
INCREASE/(DECREASE) IN WORKING CAPITAL 6,724,670 985,580 722,718 1,507,645
NET INCREASE/(DECREASE) 2,912,488 9,731,213 1,628,927 2,495,534
OPENING BANK BALANCES 6,724,670 9,637,158 19,368,371 20,997,298
CLOSING CASH BALANCE 9,637,158 19,368,371 20,997,298 23,492,832
come Statement

Year5 Year6 Year7 Year8 Year9 Year10

16,679,795 23,455,962 26,270,677 34,192,929 38,014,491 42,132,728
50,039,386 54,730,578 61,298,247 63,501,153 70,598,341 78,246,494
66,719,181 78,186,540 87,568,924 97,694,082 108,612,832 120,379,222

50,544,066 60,066,012 67,172,783 74,760,215 83,206,749 92,996,198

1,562,608 1,146,000 2,786,781 1,955,560 1,394,752 3,573,694
207,100 0 0 0 0 0
52,313,774 61,212,012 69,959,564 76,715,775 84,601,501 96,569,892

14,405,407 16,974,529 17,609,361 20,978,306 24,011,331 23,809,330

1,115,467 1,072,148 1,028,829 985,510 942,191 898,872
0 0 0 0 0 0
13,289,940 15,902,381 16,580,532 19,992,796 23,069,140 22,910,458
2,827,792 3,156,667 3,066,114 4,789,581 7,373,461 5,678,774
10,462,148 12,745,714 13,514,418 15,203,215 15,695,679 17,231,684

Year5 Year6 Year7 Year8 Year9 Year10

1,758,741 2,006,325 1,607,497 1,738,630 1,879,323 2,030,250
10,146,003 11,552,639 8,519,231 15,074,375 14,857,836 10,663,029
23,492,832 33,638,835 45,191,474 53,710,706 68,785,081 83,642,917
33,638,835 45,191,474 53,710,705 68,785,081 83,642,917 94,305,946
PROJECT COST Rs.
CAPITAL INVESTMENT PKR 9,520,000.00
NET WORKING CAPITAL PKR 6,724,671.00 SALES vs PA
140,000,000
TOTAL PROJECT COST PKR 16,244,671.00
120,000,000
100,000,000
PROJECT DETAILS RS.
80,000,000
TOTAL PROJECT COST PKR 16,244,671.00
60,000,000
PROJECT FINANCES STRATEGY
40,000,000
EQUITY (SPONSOR) --- 50% PKR 8,122,335.50
20,000,000
DEBT (BANK) --- 50 % PKR 8,122,335.50
0
NPV PKR 19,895,711.27 1 2 3 4 5 6
IRR 36.48%
PBP (YEARS) 3.79
Inflation 10.00%
Ks 16.34%
CASH FLOWS
15,074,
kd 16.00% 9,731,213 10,146,00311,552,639 8,519,231
Tax 25.00% 2,912,488 1,628,927 2,495,534
kd 12.00%
PKR 0.00 PKR 1.00 PKR 2.00 PKR 3.00 PKR 4.00 PKR 5.00 PKR 6.00 PKR 7.00 PKR 8.00
WACC 14.17%
Dep Mach 10.00%
Dep F & V 10.00% (16,244,671)
 SALES vs PAT

1 2 3 4 5 6 7 8 9 10

OWS
15,074,37514,857,836
311,552,639 8,519,231 10,663,029

PKR 6.00 PKR 7.00 PKR 8.00 PKR 9.00 PKR 10.00

WACC ANALYSIS Years CF

Ks 16.34% PKR 0.00 (16,244,671)
kd 16.00% PKR 1.00 2,912,488
Tax 25.00% PKR 2.00 9,731,213
kd 12.00% PKR 3.00 1,628,927
debt 50.00% PKR 4.00 2,495,534
equity 50.00% PKR 5.00 10,146,003
WACC 14.17% PKR 6.00 11,552,639
PKR 7.00 8,519,231
PKR 8.00 15,074,375
PKR 9.00 14,857,836
PKR 10.00 10,663,029