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GROUP MEMBERS:
HUMERA SEULMAN
MADIHA SHAHZEB
EXECUTIVE SUMMARY
• Education plays a vital role in the progress of any nation and is responsible for its
advancement towards success.
• This Feasibility Study is about setting up the venture of a High School (Franchise) in small
cities of Pakistan.
• The motive to propose small city is due to market saturation in metropolitan cities of
Pakistan and unavailability of quality education institutes in semi urban areas or small cities.
• The proposed school will offer its services from the classes from middle to Matric education.
• The school will be catering to children of middle to low-income economic stratum,
recognizing the need for a high caliber yet low-cost institute.
BUSINESS OBJECTIVES & GOAL
Non-academic staff (Secretary/PRO, Accountant, Librarian, Medical staff, Technical team, Sport Coordinator)
• The revenue items including school fees are assumed to increase by 10% in year 2-3 and by 12 % in year
4-5.
• The registration cost is assumed to be incurred in year zero alone.
• The loan is agreed to be paid at RS 10, 000,000 per year starting from year one.
• The interest on loan shall be on the balance of each year.
• There is a 10% increase on other expenses starting from year 2.
• The cost of capital for the calculation of the present value is assumed to be the bank interest rate of
15%.
• Debt equity Ratio is 2:5
FINANCIAL PROJECTIONS
• A commercial bank provides us with the initial capital outlay at an interest rate of 15% per annum. The loan is
provided at the beginning of year zero and to be repaid before the end of the fifth year together with the
interest
• The interest payment shall be from year zero as the bank insisted on deducting it from the loan before
disbursing it to us
• Year zero is the year of all requisite capital items, therefore, operation does not start in year zero. It starts in
year one, being the year after year zero.
FIXED COSTS RS
LAND ( 3 PLOTS) @ RS850,000/plot 2,550,000
TOTAL RS 1,187,200
FIXED COSTS
FURNITURES AND FITTINGS RS
TOTAL 113,000
RS
REGISTRATIONS 500,000
MISCELLANEOUS 1,000,000
TOTAL 28,000,000
CAPITAL ITEMS IN YEAR 0
ASSETS RS
Land 2,550,000
School Building 15,800,000
Plants And Machinery 1,187,200
Furnitures And Fittings 2,290,000
Motor Vehicle (School Bus) 1,500,000
TOTAL 23,327,200
ITEMS YEARS 1 2 3 4 5 TOTAL
LAND 0 0 0 0 0 0 0
5%
MACHINERY 100%
FURNITURE AND
FITTINGS 10% 0 229,000 229,000 229,000 229,000 229,000 1,145,000
MOTOR
VEHICLE 15% 0 225,000 225,000 225,000 225,000 225,000 1,125,000
6,813,600
TOTAL 1,362,720 1,362,720 1,362,720 1,362,720 1,362,720 1,362,720
DETAILS YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
INFLOWS RS RS RS RS RS RS
EQUITY 8,000,000 0 0 0 0 0
LOAN 20,000,000 0 0 0 0 0
OUTFLOW
CAPITAL
LAND 2,550,000 0 0 0 0 0
BUILDING 15,800,000 0 0 0 0 0
P&M 1,187,200 0 0 0 0 0
F&F 2,290,000 0 0 0 0 0
MOTOR
VEHICAL 1,500,000 0 0 0 0 0
OUTFLOW(A + B)
PROFIT/(LOSS) 0 10,781,080 24,992,964 48,999,281 72,034,106 94,786,228
BEFORE TAX
.8
PROFIT
AFTER TAX 0 8,624,864 19,994,371 39,199,425 57,627,285 75,828,982
DEPRECIATION
0 - 28,327,200 (28,327,200)
1 38,072,800 27,291,720 10,781,080
2 52,227,584 27,234,620 24,992,964
3 67,821,091.2 18,821,810 48,999,281.2
4 92,601,824.96 20,567,719 72,034,105.96
5 117,274,446.8 22,488,219 94,786,227.8
367,997,747 144,731,288