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1 Please add appropriate formulae in the cells filled with the following color <===
2
The project is divided into 2 stages - Development and Life of project. Development stage of
the project is completely built out in the model. Please do not disturb other formulae in the
model. Only work in cells with fill color shown in step - 1
3 Assumptions are shown in Red. Price and Quantity estimates are provided to complete the
income statement.
4 Selling and Administrative expense are 25% of revenues for that period
5 Depreciation is to be calculated using Straight line method. Life of the equipment is 4 years
and its salvage value is 0.
11 Complete the Income Statement only for the life of the project
12 Complete the Balance Sheet and Cash Flow Statement for all the 7 years.
Questions
No
Development Phase
Years 0 1
Development Stage
Funding Mix
Equity 40% 262,605
Debt 60% 393,908
Capitalised Interest
Capitalised Interest (Soft Cost) 8% 31,513
Debt Schedule
Opening Debt -
Additions / Repayment 393,908
Closing Debt 393,908
Assumptions
Current Case Base
Initial Sales Volume (Units) 100000
Initial Sales Price Per Unit 125
Initial Cost Price Per Unit 75
Growth in Sales Volume 15%
Growth in Sales Price Per Unit 20%
Growth in Cost Per Unit 20%
Income Statement
Sales
Cost of Goods Sold
Selling & Administration
Costs 25%
EBITDA
Depreciation
EBIT
Interest, Net
EBT
Tax 30%
PAT/NI
Balance Sheet
Liabilities
Debt 393,908
Equity Capital 262,605
Retained Earnings -
Total Liabilities 656,513
Assets
Fixed Assets, Gross 656,513
Accumulated Depreciation 4 -
Net Fixed Assets 656,513
Cash -
Working Capital 10% -
Total Assets 656,513
Checksum -
Net Income -
Depreciation -
Change in W/C -
Net OCF -
Capex (656,513)
Net ICF (656,513)
BOP Cash -
EOP Cash -
Interest, Net
Interest Expense 8%
Interest Income 5%
Interest, Net
Cash Flow Before Financing (CFO + CFI + Debt Raised - Debt Repaid) (262,605)
Returns Analysis
1,313,025 656,513
1,969,538 2,626,050
1,250,000 625,000
50% 25%
525,210 262,605
787,815 393,908
787,815 1,050,420
63,025 31,513
(1,313,025) (656,513) - - - -
(1,313,025) (656,513) - - - -
525,210 262,605 - - - -
787,815 393,908 - (525,210) (525,210) (525,210)
1,313,025 656,513 - (525,210) (525,210) (525,210)