STATEMENT OF INITIAL INVESTMENT

Preliminary and pre-operating expenses:

Processing and registration fee paid at municipal corporation 80000
Registration with sales tax & income tax department

18000

Total

98000

COST OF PROJECT
1.

Building

25,00,000

2.

Stock & Inventory

5,00,000

3.

Computer/Printer (Billing)

22,000

4.

Three wheeler vehicle (Transportation) 4,50,000

5.

Furniture & Fixture

70,000

6.

CCTV camera with display unit

17,000

7.

Working Capital

1,00,000

8.

Preliminary

and

pre-operating 80000

expenses
TOTAL

37,09,000

CALCULATION OF DEPRECIATION FOR FIVE

YEARS
Three wheeler (15%)

Opening Balance

II

IV

4,50,000 3,82,500 3,25,125

2,76,357

2,34,904

Depreciation

67,500

41,453

35,235

Balance end of the year

3,82,500 3,25,125 2,76,357

2,34,904

1,99,669

57,375

III

48,768

Furniture & Fixture (10%) I

II

III

IV

Opening Balance

70000

63000

56700

51030

45927

Depreciation

7000

6300

5670

5103

4592.7

Balance end of the year

63000

56700

51030

45927

41334.3

Computer/Printer (20%)

II

III

IV

Opening Balance

22,000

17,600

14,080

11,264

9,012

Depreciation

4,400

3,520

2,816

2,252

1,802

Balance end of the year

17,600

14,080

11,264

9,012

7,210

CCTV camera with display unit

II

III

IV

Opening Balance

17000

14450

12282.5

10440.13 8874.111

Depreciation

2550

2167.5

1842.375 1566.02

Balance end of the year

14450

12282.5

10440.13 8874.111 7542.994

TOTAL DEP. Rs.

66650

53602.5

43837.13 36321.06 30393.66

Salvage Value Rs.

1331.117

180195.7

PROJECTED CASH FLOW FOR FIVE YEARS

S.
No.

Particulars

Revenue

II

III

IV

1600000 1760000

1936000

2129600

2342560

Expenses

180000

189000

198450

208372.5 218791.1

Depreciation

66650

53602.5

43837.13 36321.06 30393.66

EBIT

1353350 1517398

1693713

1884906

2093375

Interest

EBT

1353350 1517398

1693713

1884906

2093375

Tax @ 30%

406005

455219.3 508113.9 565471.9 628012.6

PAT

947345

1062178

1185599

1319435

1465363

Salvage
9

Value
Recovery

180195.7
of

Working
10

Capital

45000

Initial
11

Investment

2054000

Operational
12

Cash Flow

1013995 1115781

1229436

1355756

1495756

Terminal
13

Benefit

225195.7

Projected
14

Cash Flow

1013995 1115781

1229436

1355756

1720952

CALCULATION OF NET PRESENT VALUE

Cash

PV Factor @ Present

Cumulative

Yrs Flow

10%

Value

Value

-2054000

-2054000

1013995

0.909

921721.5

942510.3

1115781

0.826

921635.1

1864145

1229436

0.751

923306.4

2787452

1355756

0.682

924625.6

3712077

1720952

0.621

1068711

4780789

Present

4760000

Net Present Value

= Total Benefit - Initial Investment

= 2706000
Benefit cost ratio

= (Present value-Initial Investment)/ Initial

investment
= 1.3174

Net Benefit cost ratio (NBCR) = BCR-1

= 0.3174
Pay Back Period = In the Third Year

IRR

49%