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Project Information
Mr. Farhan, an industrialist in Bangladesh, foresees this huge potential in the tourism sector and is planning to
launch an international standard hotel or resort to make a substantial profit by utilizing this opportunity to the
fullest. However, he has very little idea about the business perspective of a hotel or resort, and is yet to decide
the location of his project. He firmly believes in establishing a contemporary hotel or resort that will
accommodate people of both high and middle income classes. Mr. Farhan is required to analyze all the factors
that may have an impact on his business to come to a conclusion about the project viability and a possible
budget plan. Based on the analysis he is to decide whether or not he will actually go for the hotel and resort
business.
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After assessing the proposed project cost, revenue, methods of financing, Mr.
Farhan has determined that his Financial Plan should be as follows:
The Borrower will go for project financing through a syndicated debt facility
The facilities are to be arranged by IDLC Finance Limited

Group Assignment - Round 2:

Prepare a presentation explaining the detailed step-by-step approach what needs to be done to develop
the feasibility study of the project.

Find out and present all the following assumptions (with proper justifications) and you would need to
develop a financial model to perform the financial feasibility analysis of this project.
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Project cost breakdown (the major heads include but not limited to the
following):

Land Acquisition Cost

Building & Civil Construction
Furniture, Fixture & Interior Decoration
Machinery & Equipment
Vehicles
Pre-operating Expenses, Fees & Charge
Interest During Construction Period
Contingency
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Revenue assumptions
Room Revenue
Food & Beverage Revenue
Others

Expense assumptions
Salary & Benefits
Operations & Maintenance
Others
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FUNDING STRUCTURE OF THE PROJECT

Project cost item wise debt-equity
Interest Rate Mechanism
Loan Tenor
Grace Period
Repayment Mode

o Fixed Asset schedule (list and price)

o Depreciation and Amortization schedule
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Use excel wherever needed to show your assumptions, calculations and/or justifications.
They shall also be shown in your presentation along with your PowerPoint slides.

Hints:

You can look at annual reports of any hotel or resort for

reference

Primary data may be gathered by talking to industry experts

for inputs on the accuracy of the assumptions required

Please refer to the textbook and web for good examples for
preparing the schedules
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Submission Rules:

1. Your university, team name or any individual participants name must not be mentioned anywhere in the submitted Power
Point slides. If any sort of such identification is used in the submission, the team will be disqualified.

2. The Power point and all the required excel files must be submitted in the following email address:
nsufinanceclub@gmail.com

3. Your Power point and excel files must be renamed in this manner Team Name_ Blueprints 2.0_Round 2 Submission

4. The subject line of the e-mail must be mentioned in this manner: Team Name_Blueprints 2.0_Round 2 Submission

5. The Body of your email must contain the following details:

-Team name

-Team members name (all team members name)

-Team Leaders phone number

6. Submission Deadline: Thursday, 10th November, 2016 at 10:00 P.M.

7. Presentation on Friday, 11th November, 2016 at NSU on the submitted PowerPoint slides and excel files.

8. Presentation Duration: 12 minutes followed by Q/A session.