Pessimistic Optimistic

Initial Cost 1000000 770000

Admin Cost 55000 55000
Maintainnace 10000 10000

Year Initial Investment Rent Depreciation Maintainence

0 -770000
1 2040000 192500 10000
2 2040000 192500 10000
3 2142000 192500 10000
4 2142000 192500 10000

Equivalent Annuity 4.1190785712 52906

3.1190785712

Year Rent Depreciation Maintainence

0
1 2040000 250000 10000
2 2040000 250000 10000
3 2142000 250000 10000
4 2142000 250000 10000
 Year
Cost of capital = 10.75% 0
1
2
3
4
Patronage Factor = 0.5
Decrease in Room Revenue EBT Tax EAT

1650000 187500 56250 131250

1683000 154500 46350 108150
1767125 172375 51712.5 120662.5
1855500 84000 25200 58800
IRR
PBP
Profitability Index
ARR

Average Annual Investment

ARR

Decrease in Room Revenue EBT Tax EAT

-1000000
1650000 130000 39000 341000
1683000 97000 29100 317900
1767125 114875 34462.5 330412.5
1855500 26500 7950 268550
IRR 10.21%

PBP 3.039

ARR 31.45%
Lease Rent Depreciation Admin Cost Tax Benefit Cash Flow
-1000000
2040000 250000 55000 91500 2076500
2040000 250000 55000 91500 2076500
2142000 250000 55000 91500 2178500
2142000 250000 55000 91500 2178500
IRR 206%
Cash Flow Payback period calculation
-770000 1 -770000
323750 0.902934537 292325.0564
300650 624400 0.815290779 245117.1726
313162.5 145600 0.736154202 230535.8902
251300 0.464934339200894 0.664699054 167038.8722
20.78% 169.701033808326 NPV 165016.9914
2.46 years

average Annual Cash Flow / Investment

PI 1.2143077810522
297215.625
38.60%

Cash Flow

989312.5
-10687.5
-0.039797058275926
 1 -1000000
0.902935 1874943.566591
0.815291 1692951.301663
0.736154 1603711.928736
0.664699 1448046.888249
NPV 6619653.68524

4.119079
Year Gross Sales Net Sales Investment Set up Cost Food & Bev Other Op exp. Dep
0 -800000 -900000
1 4672000 4672000 0 0 1168000 1027840 283333
2 4905600 4905600 0 0 1226400 1079232 283333
3 5150880 5150880 0 0 1287720 1133193.6 283333
4 5408424 5408424 0 0 1352106 1189853.28 283333
5 5678845.2 5678845 0 0 1419711.3 1249345.944 283333
6 5962787.46 5962787 0 0 1490696.865 1311813.2412 283333

Year Gross Sales Net Sales Investment Set up Cost Food & Bev Other Op exp. Dep
0 -1200000 -900000
1 4672000 4672000 0 0 1168000 1027840 350000
2 4905600 4905600 0 0 1226400 1079232 350000
3 5150880 5150880 0 0 1287720 1133193.6 350000
4 5408424 5408424 0 0 1352106 1189853.28 350000
5 5678845.2 5678845 0 0 1419711.3 1249345.944 350000
6 5962787.46 5962787 0 0 1490696.865 1311813.2412 350000
Annual Cap Exp Maint Dec in Net Room Rev EBT Tax@30% EAT EAT+Dep
-1700000 -1700000
283333 10000 1650000 532827 159848 372979 656312
283333 10000 1683000 623635 187090.4 436544 719878
283333 10000 1767125 669508 200852.42 468656 751989
283333 10000 1855500 717631 215289.416 502342 785675
283333 10000 1892500 823955 247186.3868 576768 860102
283333 10000 1930375 936569 280970.7061 655598 938932
IRR
PBP
WACC 10.75 DPBP

Annual Cap Exp Maint Dec in Net Room Rev EBT Tax@30% EAT EAT+Dep
-2100000 -2100000
350000 10000 1650000 466160 139848 326312 676312
350000 10000 1683000 556968 167090.4 389878 739878
350000 10000 1767125 602841 180852.42 421989 771989
350000 10000 1855500 650965 195289.416 455675 805675
350000 10000 1892500 757288 227186.3868 530102 880102
350000 10000 1930375 869902 260970.7061 608932 958932
IRR
PBP
Cash Flow PVIF Disc Cash flow
-1700000 1 -1700000
372979 0.90293453725 336775
436544 0.81529077855 355911
468656 0.73615420185 345003 -421821
502342 0.66469905359 333906 0.839709689
576768 0.60017973236 346165 -328405
655598 0.54192300891 355284 428178.58 0.948696
17.35% NPV 373043 0.54
3.84 PI 1.21943724
4.95 ARR 29.54 EA 87544.58 4.261181
502147.8501433

Cash Flow PVIF Disc Cash flow

-2100000 1 -2100000
326312 0.90293453725 294638
389878 0.81529077855 317864
421989 0.73615420185 310649
455675 0.66469905359 302887 -506146.116
530102 0.60017973236 318156 0.954809692
608932 0.54192300891 329994
7.30% NPV Rs. -225,811.82
4.95
Year Gross Sales Net Sales Investment Set up Cost Food & Bev Other Op exp.
0 -800000 -900000
1 4672000 4672000 0 0 1168000 1027840
2 4905600 4905600 0 0 1226400 1079232
3 5150880 5150880 0 0 1287720 1133193.6
4 5408424 5408424 0 0 1352106 1189853.28
5 5678845 5678845.2 0 0 1419711.3 1249345.944
6 5962787 5962787.46 0 0 1490696.865 1311813.2412

YearInitial Investment Rent DepreciationMaintainence Decrease in Room Revenue EBT

0 -770000
1 2040000 192500 10000 0 1837500
2 2040000 192500 10000 0 1837500
3 2142000 192500 10000 0 1939500
4 2142000 192500 10000 0 1939500
 Dep Annual Cap Exp Maint Dec in Net Room Rev EBT Tax@30% EAT EAT+Dep
-1700000 -1700000
283333 283333 10000 0 2182827 654848 1527979 1811312
283333 283333 10000 0 2306635 691990.4 1614644 1897978
283333 283333 10000 0 2436633 730989.9 1705643 1988976
283333 283333 10000 0 2573131 771939.4 1801192 2084525
283333 283333 10000 0 2716455 814936.4 1901518 2184852
283333 283333 10000 0 2866944 860083.2 2006861 2290194

4.62288
Tax EAT Cash Flow
-770000 1 -770000
551250 1286250 1478750 0.925925925925926 1369213
551250 1286250 1478750 0.857338820301783 1267790
581850 1357650 1550150 0.793832241020169 1230559
581850 1357650 1550150 0.735029852796453 1139407
3.31212684004433 4236968

EA 1279229
Cash Flow PVIF Disc Cash flow
-1700000 1 -1700000
1527979 0.925926 1414795
1614644 0.857339 1384297
1705643 0.793832 1353995
1801192 0.73503 1323930
1901518 0.680583 1294141
2006861 0.63017 1264663
NPV 6335821

EA 1370536