Assupmtions

Revenue
Normal Room (number) 140
Suite (Number) 2
Occupancy rate (days) 110
Conference cum Wedding Hall (number) 1
Occupancy rate (days) 40
Rent (Tk.)
Normal Room 8000
Suite 25000
Conference cum Wedding Hall 300000

Initial Investment
Land (million) 180
Building (million) 450
Cost of Furniture
Normal Room (Tk./per Room) 200000
Suite (Tk./Per Suite) 500000
Conference cum Wedding Hall (Tk.) 3000000
Restaurant (Tk.) 4000000
Elevator (Tk.) 52500000
AC (Tk.) 45000000
Manager salary (Monthly) 150000
Treasurer Salary (Monthly) 120000
Receptionist salary (Monthly) 60000
Number of Receptionists 4
Workers Salary (Monthly) 8000
Number of Workers 6
Water & Electricity Expense (Monthly) 300000
Cleaning expense (Monthly) 100000
Training expenses (Yearly) 1000000
Months in a year 12
Life-Building (years) 20
Furniture, Elevator and AC (years) 5
Depreciation Method Staright Line
Depreciation Rate-Building 5%
Depreciation Rate-Furniture, Elevator & AC 20%
Salvage Vale-Building, Furniture, Elevator and AC (% of cost) 25%
Tax Rate
First 5 Years 0%
Year 6-20 37.50%
Cost of Capital 14%
1 million 1000000

Growth Rate of Revenue

Growth Rate in Rent
Normal Room 10%
Suite 7.50%
Conference cum Wedding Hall (number) 7.50%
Growth Rate in Cost of Furniture and other Fixed Asset Purchase 10%
Furniture - Normal Room 10%
Furniture - Suite 10%
Furniture - Conference cum Wedding Hall 10%
Furniture - Restaurant (Tk.) 10%
Elevator (Tk.) 10%
AC (Tk.) 10%
Increase in Recurring Expenses 5%
Revenue Assumption Error 10%

Determination of Initial Investment

Cost of Land 180.00
Cost of Building (Construction) 450.00
Cost of Furniture 36.00
Cost of Elevator 52.50
Cost of AC 45.00
Cost of Furniture, Elevator & AC 133.50
Total Initial Investment 763.50

Cost of Furniture, Elevator & AC at the beginning of year 6 146.85

Cost of Furniture, Elevator & AC at the beginning of year 11 161.54
Cost of Furniture, Elevator & AC at the beginning of year 16 177.69

Growth Rate Assumptions: Revenue and Expense 1

Rent-Normal Room 10%
Rent Suite 7.5%
Rent-Conference cum Wedding Hall (number) 7.5%
Increase in Recurring Expenses 5%
Tax Rate 0%

Growth Rate Assumptions: Fixed Asset Purchase

Furniture - Normal Room 10%
Furniture - Suite 10%
Furniture - Conference cum Wedding Hall 10%
Furniture - Restaurant (Tk.) 10%
Elevator (Tk.) 10%
AC (Tk.) 10%

Calculation of Depreciation
Buildings 16.88
Furniture, Elevator & AC 20.03
Total Depreciation 36.90
 2 3 4 5 6 7 8 9 10 11
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5%
7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5%
5% 5% 5% 5% 5% 5% 5% 5% 5% 5%
0% 0% 0% 0% 37.50% 37.50% 37.50% 37.50% 37.50% 37.50%

10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

16.88 16.88 16.88 16.88 16.88 16.88 16.88 16.88 16.88 16.88
20.03 20.03 20.03 20.03 22.03 22.03 22.03 22.03 22.03 24.23
36.90 36.90 36.90 36.90 38.90 38.90 38.90 38.90 38.90 41.11
 12 13 14 15 16 17 18 19 20
10% 10% 10% 10% 10% 10% 10% 10% 10%
7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5%
7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5%
5% 5% 5% 5% 5% 5% 5% 5% 5%
37.50% 37.50% 37.50% 37.50% 37.50% 37.50% 37.50% 37.50% 37.50%

10% 10% 10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10%
 10% 10% 10% 10% 10% 10% 10% 10% 10%

16.88 16.88 16.88 16.88 16.88 16.88 16.88 16.88 16.88

24.23 24.23 24.23 24.23 26.65 26.65 26.65 26.65 26.65
41.11 41.11 41.11 41.11 43.53 43.53 43.53 43.53 43.53
Determination of Cash Flows

0 1 2 3 4
Initial Investment in Fixed Asset
Revenue
Normal Room
Suite
Conference cum Wedding Hall
Total Revenue
Recuring Expenses
Manager salary
Treasurer Salary
Receptionist salary
Workers Salary
Water & Electricity Expense
Cleaning expense
Training expenses
Total Recuring Expenses (Excl Dep)
EBITDA
Depreciation
EBT/PBT
Tax
EAT
Depreciation
CF Before Capital Expenditure
Capital Expenditure
Salvage Value
Net Cash Flow 0.00

Terminal CF
Total Terminal Value

NPV 0.00
IRR Err:523
MIRR -100.00%

Payback Period
Year CFs Cumulative CFs
1
2
3
4
5
 6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PBP #DIV/0!
 Year
5 6 7 8 9 10 11 12 13 14
15 16 17 18 19 20