1

WELCOME
To
OLLo

Group: Indestructible
2

Name

ID#

Program

Md. Zainal Abdin

11304037

MBA

Md. Yeasin

12104026

MBA

Heron Mia

11304035

MBA

Md. Akram Hossain

12104014

MBA

Mostafijur Rahman

12104022

MBA

Nizamul Haq

10104016

MBA

Kamrun Nahar

12104024

MBA

Rahana Akter Poly

12104023

MBA

Appraisal Criteria to develop new Project for Ollo

Wireless Internet

Introductory Part

Statement of the problem:

Here we have faced the following limitations:

01. Unavailability of data

02. Incompatibility of collected data from different sources
03. Load shading
04. Have not enough time

Objectives:
Broad objective:
Our broad objective is ensuring true and fair presentation
6
of appraisal criteria to develop new project for Ollo

Scope of study
7

The study mainly covers a brief analysis capital

budgeting techniques of Ollo Wireless Internet to
take new project.
Their financial performance, fund management,

source of financing etc.

This project Report is discusses all the matters which

are related with capital budgeting approaches.

Limitations:
8

When we were preparing this report that time we

have faced some limitation because we could not get

proper information in such way.
Difficulty to collect secondary data
Difficulty to collect primary data

Methodology of the study

9

We collect the required data from the

secondary sources.
Different books
Annual report of the company
Internet

Background
10

Multinet established in 2000.

Headquarters are in Moscow, Russia.
Multinet started business in Afghanistan at the end
of 2004
Multinet present since August 2009 in Peru.
Developed projects in Afghanistan, Bangladesh,
Mozambique, Sierra Leone, Uganda.

Cont.
11

In Bangladesh they started their operation on

October 2011.
In Bangladesh brand name is OLLO
The local office of OLLO are in Gulshan-2

12

Organizational Study

Company Profile
13
Name of the company

New Graphics Generation Ltd.

Status

Private Limited company

Brand Name

OLLO

Corporate Slogan

Lets go Ollo

Business

ISP (Internet Service Provider)

Services

Voice, Data and Video services

Headquarters

Moscow, Russia

Parent

MULTINET Group

Local Office

Gulshan-2, Dhaka

Vision, Mission, Core values:

14

Vision:

To be Number One Broadband Wireless Access

Provider in the World.
Mission:
Uninterrupted services
Consistent bandwidth
Promised net speed
Integrity
Cost effectiveness
Continuous improvement of our service

Cont.
15

Core Values:
Transparency, simplicity, honesty and respect to the

subscribers and shareholders.

Endeavor to deliver change in the wireless internet
sector in Bangladesh
Provide excellence in customer service and to exceed
the customers expectations

Products of OLLO
16

DONGLE (USB
MODEM)

CRADLE (REMOTE ANTENA)

Cont.
17

OUTDOOR MODEM

POCKET ROUTER

INDOOR MODEM

18

Report part

Appraisal Criteria:
19

Cost of Capital:
Source of
capital

Book value
(Tk.)

Weights

Cost

Weighted cost

Share capital

25,000,000.00

50%

20%

10%

Debt

20,000,000.00

40%

15%

6%

Retained Earnings

5,000,000.00

10%

10%

1%

50,000,000.00

100%

So their cost of capital = 17%

17%

Cont.
20

Company is considering two new projects

Chittagong project (Initial Investment = 12,000,000.00 Tk)
Sylhet project (Initial Investment = 10,000,000.00 Tk)

Period

Chittagong (CF in
Tk)

Sylhet (CF in Tk)

2,500,000.00

2,000,000.00

4,000,000.00

3,500,000.00

4,500,000.00

4,500,000.00

8,000,000.00

6,500,000.00

Cont.
21

Pay Back Period for Chittagong project:

Cont.
22

Pay Back Period for Sylhet project:

Cont.
23

PBP comparison:

Cont.
24

Accounting Rate of Return (ARR) for Chittagong project:

Cont.
25

Accounting Rate of Return (ARR) for Sylhet project:

Cont.
26

ARR comparison:

Cont.
27
NPV for Chittagong Project:

Cont.
28

NPV for Sylhet Project:

Cont.
29

NPV comparison:

Cont.
30

IRR for Chittagong project:

Cont.
31

IRR for Sylhet project:

Cont.
32

IRR comparison:

Cont.
33
Profitability Index for Chittagong project:

Cont.
34

Profitability Index for Sylhet project:

Cont.
35

PI comparison:

Taking the investment decision:

36

Rules of accepting the project:

If the profitability index is greater than 1 then accept the project.
NPV has to be positive otherwise reject the project.
NPV must greater than Zero
Shortest payback period
IRR has to be more than Cost of Capital.
If two projects has greater IRR than costs of capital choose the greater

one.
Choose the project with higher rate of return (ARR)

Cont.
37

Decision Criteria

Chittagong project

Sylhet project

PBP

3 years 1 month 15 days

3 years

ARR

79.167%

82.5%

NPV

140,036

547,027

IRR

19%

19.2%

PI

1.0117

1.0547

38

Findings Part

Conclusion:
39

As an organization the Multinet Group (OLLO) has earned the reputation of

one of the top ISP company in Bangladesh. OLLO achieved paramount fame in
this countrys telecommunication scenario through successfully providing
internet services. In this report we tried to figure out most of the indicators of
Problems and Strengths of OLLO. Finally we tried to give some suggestion for
how OLLO can increase their services.

Recommendations:
40

Based on our analysis we are now recommending this

following issues for OLLO.

They can undertake the Sylhet project first to get high turnover.
After completing the Sylhet project they can also go through the

Chittagong project as well.

These two projects will increase the sales revenue for the company.
Completion of these two projects will make the company more
competitive in the market.
It will help them to fulfill their objectives as well.

41

Thank
you
All

42

Questions