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CAPITAL STRUCTURE
Equity (40%)
Debt (60%)
36,440,000.0
54,660,000.0
Further in our financial statements the expenses will be having and annual increase of 5% while the income
and revenues are projected to have an annual increase of 10%. The rest of the financial projections and
feasibility of the project has been made clear through the help of the constructed financial statements which
are given below.
____________________________________________________________________
University of Central Punjab
Hi-Life
OPERATING EXPENSES
Year 1
Year 2
Year 3
Year 4
Year 5
Administrative Salaries
legal fees
Entertainment
Telephone, Fax and Postage
Electricity +Generator
Advertisement
Repair of equip
Traveling conveyance
Printing and stationery
3,100,000
50,000
240,000
60,000
3,000,000
1,000,000
50,000
20,000
15,000
3,255,000
52,500
252,000
63,000
3,150,000
1,050,000
52,500
21,000
15,750
3,417,750
55,125
264,600
66,150
3,307,500
1,102,500
55,125
22,050
16,538
3,588,638
57,881
277,830
69,458
3,472,875
1,157,625
57,881
23,153
17,364
3,768,069
60,775
291,722
72,930
3,646,519
1,215,506
60,775
24,310
18,233
7,535,000
7,911,750
8,307,338
8,722,704
9,158,840
Year 2
Year 3
Year 4
Year 5
____________________________________________________________________
University of Central Punjab
Hi-Life
REVENUES
Monthly Membership
Year
Registration
Reg Revenue
Monthly
Members
Yearly revenue
Year 1
4000
4,000,000
3000
1000
3,000,000
36,000,000
Year 2
4400
440,000
3000
1100
3,300,000
39,600,000
Year 3
4840
532,400
3000
1210
3,630,000
43,560,000
Year 4
5324
644,204
3000
1331
3,993,000
47,916,000
Year 5
5856
778,901
3000
1464
4,392,300
52,707,600
Permanent membership
Year
Package
50 % off
Members
Perm Revenue
Year 1
1,000,000
800,000
400
320,000,000
Year 2
1,000,000
800,000
440
352,000,000
Year 3
1,000,000
800,000
484
387,200,000
Year 4
1,000,000
800,000
532
425,920,000
Year 5
1,000,000
800,000
586
468,512,000
____________________________________________________________________
University of Central Punjab
Hi-Life
Caf Revenue
Year
Tobocco
Yearly
Dunkin Donuts
Yearly
Caf Revenue
Year 1
25000
300000
25000
300000
600,000
Year 2
27500
330000
27500
330000
660,000
Year 3
30250
363000
30250
363000
726,000
Year 4
33275
399300
33275
399300
798,600
Year 5
36602.5
439230
36602.5
439230
878,460
Rooftop Functions
Year
Functions
Total Revenue
Year 1
100
50,000
5,000,000
Year 2
110
55,000
5,500,000
Year 3
121
60,500
6,050,000
Year 4
133
66,550
6,655,000
Year 5
146
73,205
7,320,500
Per Child
Day care
Daycare revenue
Year 1
2,000
300
600,000
Year 2
2,000
330
660,000
Year 3
2,000
363
726,000
Year 4
2,000
399
798,600
Year 5
2,000
439
878,460
____________________________________________________________________
University of Central Punjab
Hi-Life
2010
2011
2012
2013
2014
2015
366,200,000
(7,535,000)
(1,325,000)
357,340,000
(8,128,515)
349,211,485
(122,224,020)
226,987,465
1,325,000
398,860,000
(7,911,750)
(1,325,000)
389,623,250
(8,128,515)
381,494,735
(133,523,157)
247,971,578
1,325,000
438,794,400
(8,307,338)
(1,325,000)
429,162,063
(8,128,515)
421,033,548
(147,361,742)
273,671,806
1,325,000
482,732,404
(8,722,704)
(1,325,000)
472,684,700
(8,128,515)
464,556,185
(162,594,665)
301,961,520
1,325,000
531,075,921
(9,158,840)
(1,325,000)
520,592,082
(8,128,515)
512,463,567
(179,362,248)
333,101,318
1,325,000
228,312,465
249,296,578
274,996,806
303,286,520
334,426,318
(62,000,000)
(25,000,000)
(1,500,000)
(2,000,000)
(500,000)
(100,000)
(91,100,000)
2,000,000
2,000,000
(91,100,000)
228,312,465
249,296,578
274,996,806
303,286,520
____________________________________________________________________
University of Central Punjab
336,426,318
Hi-Life
Year 2
Year 3
Year 4
Year 5
2010
2011
2012
2013
2014
2015
-100,000,000
-150,000,000
____________________________________________________________________
University of Central Punjab
Hi-Life
PROJECT ECONOMICS
Net Present Value
NPV
638,740,731
IRR
135.00%
PBP
0.46
Opportunity Cost
Discount Rate
15%
All the project economics indicate that in this scenario the project should be undertaken without any
hesitation as it shows a payback period of only 4 months which is quite exceptional and an IRR of 135% which
also indicates massive return on investment.
____________________________________________________________________
University of Central Punjab