Estimation of initial investment

a) preliminary and preoperating exp

Registration and licencing 20000
Electricity connection 10000
Teliphone 3000
Water 5000
Tax authority TIN 1600
Jila Udyog kendra 2000
Misslinious 5000
Bank A/c 5000

Sum 51600

b) Capital Assets Table

Land 1500000x2 Bigha 3000000
Building 1000000
Gobar gas plant 30000
Electonic equipments 100000
Machinary 50000
Jars 50000
Van 200000
Live stock 25x35000 875000

Sum 5305000

C) Working capiital Margin

one month operating expences

Salary of 5 worker @ 3000 each 15000
Salary of driver of van 5000
Electricity bill 10000
Water 500
Teliphone 3000
Petrol for van 8x30x54 12960
Salary for managerial staff 50000
live stock eating 25x1000 25000
live stock medicines 10000
Insurance (25X1000)/12 2083.333
Others 3000
Maintenance for live stock 200000/12 16666.67

One month operating exp. 153210

Working capital margine 919260

Total Initial investment 6275860

Revenue table for one month
By sale of milk 200x25x30 150000
by sale of Furtiliser 10000

Total 160000

Revenue one month Exp 1st year 2nd year 3 rd year 4 th year 5 th year
1920000 2304000 2764800 3317760 3981312

Expences 1838520 2022372 2224609 2447070 2691777

gross profit 81480 281628 540190.8 870689.9 1289535

Table for Expences

Salary of 5 worker @ 3000 each 15000
Salary of driver of van 5000
Electricity bill 10000
Water 500
Teliphone 3000
Petrol for van 12960
Salary for managerial staff 50000
live stock eating 25000
live stock medicines 10000
Insurance 2083.333
Others 3000
maintenance for live stock 16666.67

Total Expence for a month 153210

1 st year expences 1838520

Depriciation on fixed Assets with written down value method
Depriciation on Building Opening amount

Cost of Building 10,00,000

Depriciation Rate 10%

1 st year 1000000
2 nd year Rs. 900,000.00
3 rd year Rs. 810,000.00
4 th year Rs. 729,000.00
5 th year Rs. 656,100.00
6 th year Rs. 590,490.00
7 th year Rs. 531,441.00
8 th year Rs. 478,296.90
9 th year Rs. 430,467.21
10 th year Rs. 387,420.49

Depriciation on gobar gas plant

Cost of Plant 30000
Depriciation rate 15%

Opening Amount Depriciation

1st year 30000 4500
2 nd year 25500 3825
3 rd year 21675 3251.25
4 th year 18423.75 2763.5625
5 th year 15660.1875 2349.028125

Depriciation on Electronic Equipment

Cost of Equipment 100000
Depriciation Rate 15%
Opening Amount Depriciation
1 st yaer 100000 15000
2nd year 85000 12750
3 rd year 72250 10837.5
4 th year 61412.5 9211.875
5 th year 52200.625 7830.09375

Depriciation on Machinary and Jars

Opening Amount 100000
Depriciation Rate 15%

Opening Amount Depriciation

1 st yaer 100000 15000
2nd year 85000 12750
3 rd year 72250 10837.5
4 th year 61412.5 9211.875
5 th year 52200.625 7830.09375

Depriciation on Delivery Van

Opening amount 200000
Depriciation rate 30%

Opening Amount Depriciation

1 st year 200000 60000
2 nd year 140000 42000
3 rd year 98000 29400
4 th year 68600 20580
5 th year 48020 14406

Total Depriciation
1 Year Rs. 194,500.00
2 Year Rs. 161,325.00
3 Year Rs. 135,326.25
4 Year Rs. 770,767.31
5 Year Rs. 688,515.22
Depriciation NET VALUE

100000 Rs. 900,000.00

Rs. 90,000.00 Rs. 810,000.00
Rs. 81,000.00 Rs. 729,000.00
Rs. 72,900.00 Rs. 656,100.00
Rs. 65,610.00 Rs. 590,490.00
Rs. 59,049.00 Rs. 531,441.00
Rs. 53,144.10 Rs. 478,296.90
Rs. 47,829.69 Rs. 430,467.21
Rs. 43,046.72 Rs. 387,420.49
Rs. 38,742.05 Rs. 348,678.44

Net Amount
25500
21675
18423.75
15660.1875
13311.159375

Net Amount
85000
72250
61412.5
 52200.625
44370.53125

Net Amount
85000
72250
61412.5
52200.625
44370.53125

Net Value
140000
98000
68600
48020
33614
 Estimate of projected Cash Flow
Life of Project = 5 Years

Particular 0 1 2
A. Preliminary & Pre operatin Exp 51600
B. Capital Assets 5305000
C. Working capital Margin 919260
D. Revenue 1920000 2304000
E. Operating Exp. 1838520 2022372
F. Depriciation 194500 161325
G. Operating Profit -113020 120303
H. Net operating Profit -113020 120303
I. EBIT -113020 120303
J. Interest -113020 120303
K. EBT -113020 120303
L. Tax -113020 120303
M. Operating Exp. -113020 120303
N. Salvage Value
O. Recovery Of Working Capital margine
P. Initial Investment 6275860
Q. Operational Benefit 81480 281628
R. Terminal Cash Inflow

Project Cash flow -6275860 81480 281628

Years

0
1
2
3
4
5
ed Cash Flow

3 4 5

2764800 3317760 3981312

2224609.2 2447070.1 2691777.1
135326.25 770767.31 688515.22
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
404864.55 99922.567 601019.65
4359344.7
919260

540190.8 870689.88 1289534.9

5278604.7

540190.8 870689.88 6568139.5

Projected Cash Flow

-6275860
81480
281628
540190.8
870689.88
6568140
Table for salvage Value

Delivery Van 33614

Machinary & Jars 44370.53
Electronic Equipments 44370.53
Gobar Gas Plant 13311.16
Building 348678.4
Live Stock 875000
Land 3000000

Sum 4359345
Financial analisis

PBP
ARR
IRR
BEP
Cost of capital 6275860
12622996
Intrest will be received in future 12622996

Total intrest 6347136