BaitaichinhDA English Thamkhao

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A
Question 1
Table of parameters
Capacity
Number of plants (000)/hectare
Number of stems per plant
Number of hetares planted
Installed capacity
Factor
Capacity utilisation
Price
Selling price/stem (year 0)
Unit cost of plant (year 0)
Working Capital
Accounts receivable
5% of sales
Accounts payable
8.33% of purchase
Cash balance
3% of sales
70.00
30.00
4.50
9.50
Million stems per annum
100%
Financing
Year 0
Year 1
Year 2
Year 3
Year 4 -9
Debt financing
0%
0%
70%
80%
90% Withdrawal (in million Rs)
GDBL
Foreign Dom Rs
GG
0.22
6.60
0.238
7.14
Year 0
0.00
4.00
GDBL
Inputs
Real interest rate per annum
Raw material (year 2)
2.00
Annual increase in raw material
Million Rs
GG
10%
9%
Number of installments
2.6 Million Rs each year (year 2 to year 9)
Subsidy on power and fuel
12.0%
Salaries and wages
2.95
Annual increase in salaries and wage
Resident values
BLDG
Million Rs in year 2
For tax purposes, depreciation
0.5%
2% of sales revenue
Selling expenses
10% of sales revenue
Administrative overheads
5% of sales revenue
Repairs and maintainance
5%
Capital
Other
Planting
Equipment
Equipment
Material
15
Operating life of project
Packing material
10
Opportunity cost of Abhishek salary
Value
Expect mkt value of land in yr 10
0.608
(million Rs)
0.50% per year
Investment cost
Land requirment
Cost of land to the Gov
Site development cost to Gov
Land cost (including development cost) - subsidised
<<Foreign $$>>
Year 0
10 hectares
Cost of capital
0.3 million Rs/hectare
Return to equity
12%
WACC
10.50%
Economic Rate of Return
15%
Domestic inflation rate
<<Domestic $$>>
Year 1
Building and Civil works
Year 0
1.50
Year 1
Total
4.10
5.60
Foreign inflation rate
0.00
30.00
30.00
Foreign exchange rate
30
Capital Equipment (exported)
0.00
56.00
56.00
Coporate tax rate
Other Equipment
0.00
10.00
10.00
1.50
13.50
15.00
0.50
5.00
5.50
Capital Equipment (imported)
Capital issue expenses
1.00
0.05
0.45
Page 1
4
year
0.6 Million RS from year 0 to year 10
Annual increase
8 year
(as % of cost of building and civil works and capital equipment)
Technical know - how fees
Year 1
40.00
2.00
2.0%
Power and fuel
(Real figure, million)
0%
A
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Preoperative expenses
76
3.1 Depreciation schedule
0.50
4.00
4
6.01
0.54
1.55
1.00
0.54
5
5.01
0.45
1.55
1.09
0.45
6
3.91
0.35
1.55
1.19
0.35
7
2.72
0.24
1.55
1.30
0.24
8
1.42
0.13
1.55
1.42
0.13
4.50
Question 2
1. Debt payment schedule
Gov loan payment
0
Debt Balance at the beginning of year
Interest
Payment
- Installment
- Interest
Incremental debt
Debt at the end of the year
1
4.0
0.36
2
6.36
0.57
0
0
0
4.0
0
0
0
3
6.93
0.62
1.55
0.921
0.624
2.0
6.36
6.93
$6.01
$5.01
$3.91
$2.72
$1.42
$0.00
1
-
2
40.00
4.00
3
44.00
4.40
9.04
4.64
4.40
4
39.36
3.94
9.04
5.10
3.94
5
34.26
3.43
9.04
5.61
3.43
6
28.65
2.86
9.04
6.17
2.86
7
22.48
2.25
9.04
6.79
2.25
8
15.69
1.57
9.04
7.47
1.57
9
8.22
0.82
9.04
8.22
0.82
$39.36
$34.26
$28.65
$22.48
$15.69
$8.22
$0.00
GDBL loan repayment

0
Interest
Payment
- Installment
- Interest
Incremental debt
2. Investment Plan
Items
- Land
- Building and civil contruct
- Capital Equipment
-Other Equipment
.-Other expense
.-Plant material
Total
77
0
0
0
40.0
0
0
0
44.00
Year 0
Year 1 Total
1.7
1.7
1.50
4.10
5.6
0.00
86.00
86
0.00
10.00
10
2.50
22.50
25
2.25
2.2491
5.7 124.85 130.55
Building
78
Initital value
5.60
5.60
5.60
5.60
5.60
5.60
5.60
5.60
79
Depreciation expense
0.37
0.37
0.37
0.37
0.37
0.37
0.37
0.37
80
Accumulated depreciation
0.37
0.75
1.12
1.49
1.87
2.24
2.61
2.99
81
Salvage value (scrapped assets)
5.23
4.85
4.48
4.11
3.73
3.36
2.99
2.61
Page 2
82
Incremental investment
83
84
85
86
87
88
89
90
Capital Equipment
Initital value
91
92
93
94
95
96
97
Other Equipment
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
2
86
8.6
8.60
###
3
86
8.6
17.20
68.80
4
86
8.6
25.80
60.20
5
86
8.6
34.40
51.60
6
86
8.6
43.00
43.00
8
86
8.6
###
###
9
86
###
###
###
86
8.6
51.60
34.40

0
Initital value
2
10
2.0
2.00
8.00
3
10
2.0
4.00
6.00
4
10
2.0
6.00
4.00
5
10
2.0
8.00
2.00
6
10
2.0
10.00
10
10
2.0
2.00
8.00
10
2.0
4.00
6.00
10
###
6.00
4.00

Other Expense
Initital value
2
25
5.0
5.00
###
3
25
5.0
10.00
15.00
4
25
5.0
15.00
10.00
5
25
5.0
20.00
5.00
6
25
5.0
25.00
-

Plant material
Initital value
3.6 Total Depreciation schedule
Capital Equipment
Initital value
2.25
0.56
0.56
1.69
2.25
0.56
1.12
1.12
2.25
0.56
1.69
0.56
2.25
0.56
2.25
2.25
2.25
0.56
0.56
1.69
2.25
0.56
1.12
1.12
2.25
0.56
1.69
0.56
2
128.85
16.54
16.54
112.31
3
128.85
16.54
33.07
95.78
4
128.85
16.54
49.61
79.24
5
128.85
16.54
66.14
62.71
6
128.85
16.54
80.43
48.42
7
103.85
11.54
56.96
46.88
8
9
103.85 103.85
11.54
11.54
68.50
80.04
35.35
23.81
Page 3
2.25
0.56
2.25
-
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
A
D
0.00
E
0.00
F
0.00
G
2.25
H
10.00
I
0.00
J
0.00
K
0.00
6.62
###
6.60
43.66
7.56
7.560
6.60
49.90
2
2.00
2.60
2.95
4.58
3
2.04
2.60
2.96
4.58
4
2.08
2.60
2.98
4.58
5
2.12
2.60
2.99
4.58
6
2.16
2.60
3.01
4.58
7
2.21
2.60
3.02
4.58
8
2.25
2.60
3.04
4.58
9
2.30
2.60
3.05
4.58
12.13
0.87
4.37
2.18
12.18
1.00
4.99
2.49
12.24
1.12
5.61
2.81
12.30
1.12
5.61
2.81
12.35
1.12
5.61
2.81
12.41
1.12
5.61
2.81
12.47
1.12
5.61
2.81
12.53
1.12
5.61
2.81
7.42
8.48
9.54
9.54
9.54
9.54
9.54
9.54
19.55
20.67
21.78
21.84
21.90
21.96
22.01
22.07
2
1.31
2.18
0.24
3
1.50
2.49
0.25
4
1.68
2.81
0.27
5
1.68
2.81
0.27
6
1.68
2.81
0.27
7
1.68
2.81
0.28
8
1.68
2.81
0.28
9
1.68
2.81
0.28
Working capital
Change of CB
Change of AR
Change of AP
3.25
1.31
2.18
0.24
3.74
0.19
0.31
0.01
4.22
0.19
0.31
0.01
4.22
0.00
0.00
0.00
4.22
0.00
0.00
0.00
4.21
0.00
0.00
0.00
4.21
0.00
0.00
0.00
4.21
0.00
0.00
0.00
-1.68
-2.81
-0.28
Change of Working capital
3.25
0.49
0.49
0.00
0.00
0.00
0.00
0.00
-4.21
4. Estimation of Revenue
0
Quantity of production
Products sold
Price/unit
Revenue=
8.51
8.505
8.505
8.505
8.505
8.505
8.505
8.505
6.60
6.60
6.60
6.60
56.13
56.13
56.13
56.13
8
9
###
###
###
###
6.60
6.60
56.13
56.13
5. Cost of Production
0
- Materials
- Fuel
Salaries and wages
Total Direct Cost
Packing material
Selling expenses
Total indirect cost
140 Total cost

141
142
143 6. Working Capital
144
145 Cash Balance (CB)
146 Account Receivables (AR)
147 Account Payablres (AP)
148
149
150
151
152
153
154
Page 4
10
A
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
2
43.66
28.67
14.99
5.24
2.18
7.57
3
49.90
28.72
21.18
5.99
2.49
12.69
5.02
7.67
0.00
7.67
4
56.13
28.78
27.36
6.74
2.81
17.81
4.48
13.34
0.00
13.34
5
56.13
28.83
27.30
6.74
2.81
17.76
3.88
13.88
0.00
13.88
6
56.13
28.89
27.24
6.74
2.81
17.70
3.22
14.48
0.00
14.48
Revenue
Cost of good sales
Gross profit
Sales cost
Profit before tax and interest
Interest payment
Profit before tax
Income tax
Profit after tax
7.57
0.00
7.57
Question 3 Financial Cash Flow construction
172
CASH FLOW (Total Investment Point of
173
175
176
177
178
179
180
181
182
183
184
185
186
7. Profit Estimation
171
174
Inflows
0
0.00
1
0.00
- Revenue
- Change of AR (minus)
-Scrapped assets
- Scrapped Land
Outflows
- Investment cost
- Direct cost
- Packing material
- Selling expenses
- Administrative overheads
- Change of AP (minus)
- Change of cash balance (plus)
7
56.13
23.95
32.18
6.74
2.81
22.64
2.49
20.15
0.00
20.15
8
56.13
24.01
32.13
6.74
2.81
22.58
1.70
20.89
0.00
20.89
9
56.13
24.07
32.07
6.74
2.81
22.52
0.82
21.70
0.00
21.70
Remark: The bank invests together with the investor as co-owners of the project
2
41.48
43.66
-2.18
3
49.58
49.90
-0.31
4
55.82
56.13
-0.31
5
56.13
56.13
0.00
6
56.13
56.13
0.00
7
56.13
56.13
0.00
8
9
10
56.13 56.13 28.32
56.13 56.13
0.00
0.00 0.00
2.81
23.81
1.70
6.30
5.70
###
###
21.23
12.13
0.87
4.37
2.18
-0.24
1.31
Page 5
21.45
12.18
1.00
4.99
2.49
-0.01
0.19
22.57
24.70
32.51
22.57
22.64 22.70
-0.77
12.24
1.12
5.61
2.81
-0.01
0.19
2.25
12.30
1.12
5.61
2.81
0.00
0.00
10.00
12.35
1.12
5.61
2.81
0.00
0.00
12.41
1.12
5.61
2.81
0.00
0.00
12.47 12.53
1.12 1.12
5.61 5.61
2.81 2.81
0.00 0.00
0.00 0.00
0.00
0.00
0.00
0.00
0.28
-1.68
A
187
- Opportunity cost of Abhishek salary
0.600 0.603
0.606
0.609
0.612
0.615
0.618
0.621
0.624 0.628 0.631
-6.30
20.25
28.13
33.25
31.43
23.62
33.56
33.50 33.43 29.09
0.00
0.00
0.00
0.00
0.00
0.00
20.25
28.13
33.25
31.43
23.62
33.56
190
Net Cash Flow before tax

Income tax
Net Cash Flow after tax
191
Remark: Income tax in the cash flow based on Total Investment point's of view
192
194
tax shield of loan interest

* only materials'inventory and semi-final product
Calculate IRR & NPV (WACC = 10.5%)
IRR1 = 15.796%
NPV1= 28.05 million Rs
195
Question 4 CASH FLOW (Total Owner's point of

Loan
view)
from bank and government
188
189
193
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
-6.30
Inflows
- Revenue
-Scrapped assets
- Scrapped Land
- Loan
Outflows
###
###
4.00 42.00
41.48
43.66
-2.18
49.58
49.90
-0.31
55.82
56.13
-0.31
56.13
56.13
0.00
56.13
56.13
0.00
56.13
56.13
0.00
0.00
0.00
0.00
33.50 33.43 29.09
10
56.13 56.13 28.32

56.13 56.13
0.00
0.00 0.00
2.81
23.81
1.70
4.00 42.00
6.30
5.70
###
###
21.58
- Investment cost
- Direct cost
12.13
0.87
- Packing material
- Subsidy for fuel
0.355
4.37
- Selling expenses
2.18
-0.24
1.31
0.600 0.603 0.606
- Debt and Interest rate payment
Page 6
32.39
33.51
35.64
43.45
33.51
33.57 32.09
-0.77
12.18
1.00
12.24
1.12
2.25
12.30
1.12
10.00
12.35
1.12
12.41
1.12
12.47 12.53
1.12 1.12
0.00
0.00
0.355
0.355 0.355 0.355 0.355 0.355 0.355
4.99
2.49
-0.01
0.19
0.609
10.58
5.61
2.81
-0.01
0.19
0.612
10.58
5.61
2.81
0.00
0.00
0.615
10.58
5.61
2.81
0.00
0.00
0.618
10.58
5.61
2.81
0.00
0.00
0.621
10.58
5.61 5.61
0.00
2.81 2.81
0.00
0.00 0.00
0.28
0.00 0.00 -1.68
0.624 0.628 0.631
10.58 9.04
0.00
216

Income tax
217
218
Calculate IRR & NPV (Ke = 12%)
219
Question 5 ECONOMIC CASH FLOW
214
215
-2.30 -83.45
-2.300
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
Inflows
- Investment cost
- Direct cost
- Subsidy for fuel
- Packing material
- Selling expenses
Net Cash Flow
17.20
22.31
20.49
12.68
22.62
0.00
0.00
0.00
0.00
0.00
0.00
22.56 24.04 29.09

0.00
0.00
0.00
22.315 20.495 12.684 22.622 22.560
###
###
10
NPV2 =
18.378%
20.91
million Rs
(Valued at Economic Prices)
0.00
0.00
41.48
43.66
-2.18
49.58
49.90
-0.31
55.82
56.13
-0.31
56.13
56.13
0.00
56.13
56.13
0.00
56.13
56.13
0.00
- Revenue
-Scrapped assets
- Scrapped Land
Outflows
19.89
### 19.893 17.197
IRR2=
220
56.13 56.13 32.70

56.13 56.13
0.00
0.00 0.00
2.81
23.81
6.08
9.00
8.40
###
###
0.600 0.603
-9.00
Year 0
###
21.58
21.80
22.92
25.05
32.87
22.93
22.99 23.05
-0.77
2.25
12.30
10.00
12.35
12.41
12.47 12.53
0.00
12.13
12.18
12.24
0.355
0.355
0.355 0.355 0.355 0.355 0.355 0.355
0.87
4.37
2.18
-0.24
0.606
1.31
1.00
4.99
2.49
-0.01
0.609
0.19
1.12
5.61
2.81
-0.01
0.612
0.19
1.12
5.61
2.81
0.00
0.615
0.00
1.12
5.61
2.81
0.00
0.618
0.00
1.12
5.61
2.81
0.00
0.621
0.00
1.12 1.12
0.00
5.61 5.61
0.00
2.81 2.81
0.00
0.00 0.00
0.28
0.624 0.628 0.631
0.00 0.00 -1.68
19.89
27.78
32.90
31.08
23.27
33.21
33.14 33.08 33.47
Land = (0.3+0.14)*10
Calculate IRR & NPV (K = 15%)

IRR3 = 15.116%
NPV3 = 0.53 million Rs
Page 7
Year 10 = Tinhs theo gia ki vong = 1million*30% + 80%*4.4
241
242
243
244
245
246
247
248
Question 6 CASH FLOW (BUDGET POINT OF VIEW)
249
10
0.00
0.00
0.00
1.55
1.55
1.55
1.55
1.55
1.55
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.55
1.55
1.55
1.55
1.55
1.55
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
-0.35
1.19
1.19
1.19
1.19
1.19
1.19
-0.35
0.00
257
Inflows
-Tax
- Receive (interest + Loan)
Outflows
- Subsidy for land
- Subsidy for fuel
- Loan of government
Net Cash Flow
258
If the government owned the land instead of buying it. This cash flow will not change
250
251
252
253
254
255
256
259
262
263
264
2.00
0.00
2.70
4.00
2.00
-6.70
-2.00
CASH FLOW (BUDGET POINT OF VIEW)
260
261
6.70
Inflows
-Tax
- Receive (interest + Loan)
- Receive from land owner
10
0.00
0.00
0.00
1.55
1.55
1.55
1.55
1.55
1.55
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.55
1.55
1.55
1.55
1.55
1.55
0.00
Page 8
A
265
266
267
268
269
Outflows
- Loan
- Subsidy for land
- Subsidy for fuel
Net Cash Flow
6.70
2.00
4.00
2.00
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
-0.35
1.19
1.19
1.19
1.19
1.19
1.19
-0.35
2.70
-6.70
-2.00
0.00
270
271
272 Question 7
273 ABCL is concerned that the project benefit may be sensitive to a) selling price of rose stems b) unit price of plant c) percent of selling expenses to sales revenues and
274 d) capacity utilization. Conduct a sensitive analysis with one variable to determine the effect of each of these parameters on the net present value of the project from the ABCL's perpective.
Selling price of rose stems
Unit price of plant
275
Price
$
Price
Rs
NPV1
NPV2
NPV3
Change
Price
$
Price Rs
NPV1
NPV2
276
28.05
20.91
0.53
28.05
20.91
277
0.18
5.40
-9.54
-14.14
-30.10
0.238
7.14
28.05
20.91
278
0.19
5.70
-0.14
-5.38
-22.44
30%
0.3094 9.282
27.03
19.92
279
0.20
6.00
9.25
3.38
-14.78
-40%
0.1428 4.284
29.41
22.22
280
0.21
6.30
18.65
12.14
-7.12
100%
0.476
14.28
24.65
17.62
281
0.22
6.60
28.05
20.91
0.53
7%
0.25466
7.6398
27.81
20.68
282
0.23
6.90
37.44
29.67
8.19
283
0.24
7.20
46.84
38.43
15.85
Capacity utilization
284
Percent of selling expenses to sales revenue
Capacity utilization
NPV1
NPV2
285
Percent of sale
NPV1
NPV2
NPV3
Factor
28.05
20.91
286
28.05
20.91
0.53
50% -75.31
-75.46
287
6.00%
38.10
30.29
8.75
60%
-54.64
-56.19
288
8.00% 33.07
25.60
4.64
100% 28.05
20.91
289
10.00% 28.05
20.91
0.53
140% 110.73
98.00
290
12.00% 23.02
16.21
-3.58
160% 152.07
136.55
291
14.00% 17.99
11.52
-7.69
292
16.00%
12.97
6.83
-11.80
293
18.00%
7.94
2.14
-15.91
294
20.00%
2.92
-2.55
-20.02
295
22.00%
-2.11
-7.25
-24.13
296
24.00% -7.14
-11.94
-28.24
297
298
299
Page 9
NPV3
0.53
0.53
-0.39
1.76
-2.54
0.32
NPV3
0.53
-83.70
-66.85
0.53
67.92
101.61
M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
Page 10
M
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
Page 11
M
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
Page 12
M
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
Page 13
M
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
Page 14
M
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
Page 15
M
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
30% + 80%*4.4
238
239
240
Page 16
M
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
Page 17
M
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
Page 18
Question 1
Table of parameters
Capacity
Number of plants (000)/hectare
Number of stems per plant
Number of hetares planted
Installed capacity
70.00
30.00
4.50
9.50
Million stems per annum
Year 0
Capacity utilisation
Year 1
0%
Price
Selling price/stem (year 0)
0%
Foreign
0.22
Unit cost of plant (year 0)
Year 2
Year 3
Year 4 -9
70%
80%
90%
Dom Rs Exchange rate
6.60
30 Rs/USD
0.238
7.14
Inputs
Raw material (year 2)
2.00
Annual increase in raw material
Million Rs
2.0%
Power and fuel
2.6 Million Rs each year (year 2 to year 9)
Subsidy on power and fuel
12.0%
Salaries and wages
2.95
Annual increase in salaries and wage
Million Rs in year 2
0.5%
Packing material
2% of sales revenue
Selling expenses
10% of sales revenue
5% of sales revenue
5%
(as % of cost of building and civil works and capital equipment)

Opportunity cost of Abhishek salary
0.6 Million RS from year 0 to year 10
Annual increase
0.50% per year
Investment cost
Land requirment
10 hectares
Cost of land to the Gov
Site development cost to Gov
Land cost (including development cost) - subsidised

<<Foreign $$>>
(Real figure, million)
Year 0
<<Domestic $$>>
Year 1
Year 0
Building and Civil works
Year 1
1.50
Capital Equipment (imported)
5.60
0.00
30.00
30.00
Capital Equipment (exported)
0.00
56.00
56.00
Other Equipment
0.00
10.00
10.00
1.50
13.50
15.00
Capital issue expenses
0.50
5.00
5.50
Preoperative expenses
0.50
4.00
4.50
Technical know - how fees
1.00
Total
4.10
0.05
0.45
Question 2
1. Debt payment schedule
Gov loan payment
0
Interest
Payment
1
4.0
0.36
2
6.36
0.57
0
3
6.93
0.62
1.55
4
6.01
0.54
1.55
- Installment
- Interest
Incremental debt
0
0
4.0
2.0
6.36
0
0
0.921
0.624
1.00
0.54
6.93
$6.01
$5.01
2
40.00
4.00
3
44.00
4.40
9.04
4.64
4.40
4
39.36
3.94
9.04
5.10
3.94
$39.36
$34.26
GDBL loan repayment

Interest
Payment
- Installment
- Interest
Incremental debt
2. Investment Plan
Items
- Land
- Building and civil contruct
- Capital Equipment
-Other Equipment
.-Other expense
.-Plant material
Total
0
0
0
40.0
0
0
0
44.00
Year 0
Year 1
Total
1.7
1.7
1.50
4.10
5.6
0.00
86.00
86
0.00
10.00
10
2.50
22.50
25
2.25
2.2491
5.7 124.8491 130.55

Building
Initital value
5.60
5.60
5.60
0.37
0.37
0.37
0.37
0.75
1.12
5.23
4.85
4.48
Capital Equipment
Initital value
2
86
8.6
8.60
###
3
86
8.6
17.20
68.80
4
86
8.6
25.80
60.20

Other Equipment
Initital value
2
10
2.0
2.00
8.00
3
10
2.0
4.00
6.00
4
10
2.0
6.00
4.00
Other Expense
Initital value
2
25
5.0
5.00
###
3
25
5.0
10.00
15.00
4
25
5.0
15.00
10.00

Plant material
Initital value
3.6 Total Depreciation schedule
Capital Equipment
Initital value
2.25
0.56
0.56
1.69
2.25
0.56
1.12
1.12
2.25
0.56
1.69
0.56
2
128.85
16.54
16.54
112.31
0.00
3
128.85
16.54
33.07
95.78
0.00
4
128.85
16.54
49.61
79.24
0.00
4. Estimation of Revenue
Quantity of production
Products sold
Price/unit
Revenue=
6.62
###
6.60
43.66
7.56
8.51
7.560
8.505
6.60
6.60
49.90
56.13
2
2
2.6
2.95
4.58
3
4
2.04
2.0808
2.6
2.6
2.96475 2.97957
4.58
4.58
5. Cost of Production
0
- Materials
- Fuel
Salaries and wages
Total Direct Cost

Packing material
Selling expenses
12.13 12.18475 12.2404

0.87318 0.99792 1.12266
4.3659
4.9896
5.6133
2.18295
2.4948 2.80665
Total indirect cost
7.42203
8.48232 9.54261
Total cost
19.552 20.66707
21.783
6. Working Capital
Cash Balance (CB)
Account Receivables (AR)
Account Payablres (AP)
2
1.31
2.18
0.24
3
1.50
2.49
0.25
4
1.68
2.81
0.27
Working capital
Change of CB
Change of AR
Change of AP
3.25
1.31
2.18
0.24
3.74
0.19
0.31
0.01
4.22
0.19
0.31
0.01
Change of Working capital
3.25
0.49
0.49
7. Profit Estimation
0
Revenue
Cost of good sales
Gross profit
Sales cost
Profit before tax and interest
Interest payment
Profit before tax
Income tax
Profit after tax
2
35.721
28.67
7.06
5.23908
2.18295
-0.37
-0.37
0.0
-0.4
3
4
43.092
45.36
28.72
28.78
14.37
16.58
5.98752 6.73596
2.4948 2.80665
5.89
7.04
5.02
4.48
0.9
2.6
0.0
0.0
0.9
2.6
Question 3 Financial Cash Flow construction
CASH FLOW (Total Investment Point of Vi Remark: The bank invests together with th
Inflows
0
0.00
1
0.00
2
41.48
43.66
-2.18
3
49.58
49.90
-0.31
4
55.82
56.13
-0.31
6.30
5.70
125.45
124.85
21.23
21.45
22.57
- Revenue
-Scrapped assets
- Scrapped Land
Outflows
- Investment cost
- Direct cost
- Packing material
- Selling expenses

Income tax
0.600
0.603
12.13
0.87
4.37
2.18
-0.24
1.31
0.606
-6.30
-125.45
20.25
28.13
33.25
0.00
0.00
0.00
20.25
28.13
33.25
-6.30
-125.45
12.18
1.00
4.99
2.49
-0.01
0.19
0.609
12.24
1.12
5.61
2.81
-0.01
0.19
0.612
Remark: Income tax in the cash flow based on Total Investment point's of view
tax shield of loan interest

Calculate IRR & NPV (WACC = 10.5%)
IRR = 17.192%
NPV = 32.42 million Rs
Question 4 CASH FLOW (Total Owner's point of Loan

view)from bank
Inflows
- Revenue
-Scrapped assets
- Scrapped Land
- Loan
Outflows
4.00
42.00
41.48
43.66
-2.18
49.58
49.90
-0.31
55.82
56.13
-0.31
4.00
42.00
6.30
5.70
125.45
124.85
21.23
32.03
33.15
0.603
12.13
0.87
4.37
2.18
-0.24
1.31
0.606
12.18
1.00
4.99
2.49
-0.01
0.19
0.609
10.58
12.24
1.12
5.61
2.81
-0.01
0.19
0.612
10.58
-83.45
20.25
17.55
22.67
- Investment cost
- Direct cost
- Packing material
- Selling expenses
0.600
- Debt and Interest rate payment
-2.30
Income tax
0.00
-2.300
0.00
0.00
-83.452 20.248 17.551 22.670

Calculate IRR & NPV (Ke = 12%)
IRR = 20.909%
NPV =
Question 5 ECONOMIC CASH FLOW
(Valued at Economic Prices)
Inflows
- Investment cost
- Direct cost
- Packing material
- Selling expenses
Net Cash Flow
million Rs
0.00
0.00
41.48
43.66
-2.18
49.58
49.90
-0.31
55.82
56.13
-0.31
5.70
5.70
124.85
124.85
20.62
20.84
21.96
12.13
0.87
4.37
2.18
-0.24
1.31
12.18
1.00
4.99
2.49
-0.01
0.19
12.24
1.12
5.61
2.81
-0.01
0.19
20.85
28.74
33.86
- Revenue
-Scrapped assets
- Scrapped Land
Outflows
26.55
-5.70
-124.85
Calculate IRR & NPV (K = 15%)

IRR = 18.023%
NPV = 11.77 million Rs
Question 6 CASH FLOW (BUDGET POINT OF VIEW)
Inflows
-Tax
Outflows
- Subsidy for land
0
0
2.7
2.7
1
0
0.0
0
2
0
0.0
0
3
0
0.0
0
4
0
0.0
0
Net Cash Flow
-2.7
1
0
0.0
2
0
0.0
3
0
0.0
4
0
0.0
Revenue
357.21
430.92
453.6
535.815
561.33
586.845
612.36
612.36
2
3
4
5
6
7
8
9
If the government owned the land instead of buying it.

This cash flow will change
CASH FLOW (BUDGET POINT OF VIEW)
Inflows
-Tax
- Receive from land owner
Outflows
- Subsidy for land
Net Cash Flow
0.18
0.19
0.2
0.21
0.22
0.23
0.24
0.24
0
3
3
2.7
2.7
0.3
selling Price of rose stems

54.00
57.00
60.00
63.00
66.00
69.00
72.00
72.00
357.21
357.21
430.92
453.60
535.82
561.33
586.85
612.36
612.36
19.55203
337.658
411.36797
434.04797
516.26297
541.77797
567.29297 Exchange rate
592.80797
592.80797
30
Annual Change in Selling Price affect to revenue (ceteris paribus (other thing holding))
USD
2
3
4
5
6
7
8
9
Rs
0.18
0.28
0.38
0.48
0.58
0.68
0.78
0.78
5.4
8.4
11.4
14.4
17.4
20.4
23.4
23.4
Revenue Profit
35.72 16.16797
55.57 36.01397
75.41 55.85897
95.26 75.70397
115.10 95.54897
134.95
115.394
154.79
135.239
154.79
135.239
Working Capital
Accounts receivable
5% of sales
Accounts payable
8.33% of purchase
Cash balance
3% of sales
Financing
Debt financing
Withdrawal (in million Rs)
GDBL
GG
Year 0
0.00
4.00
GDBL
Real interest rate per annum
Year 1
40.00
2.00
GG
10%
9%
Number of installments
Resident values
Capital
BLDG
Other
For tax purposes, depreciation
15
Operating life of project
10
8 year
0.608
(million Rs)
om year 0 to year 10
Cost of capital
Return to equity
12%
WACC
10.50%
Economic Rate of Return
15%
Domestic inflation rate
Foreign inflation rate
Foreign exchange rate

Coporate tax rate
5
5.01
0.45
1.55
6
3.91
0.35
1.55
30
0%
7
2.72
0.24
1.55
8
1.42
0.13
1.55
4
year
Value
Expect mkt value of land in yr 10
Planting
Equipment Equipment Material
1.09
0.45
1.19
0.35
1.30
0.24
1.42
0.13
$3.91
$2.72
$1.42
$0.00
5
34.26
3.43
9.04
5.61
3.43
6
28.65
2.86
9.04
6.17
2.86
7
22.48
2.25
9.04
6.79
2.25
8
15.69
1.57
9.04
7.47
1.57
9
8.22
0.82
9.04
8.22
0.82
$28.65
$22.48
$15.69
$8.22
$0.00
5.60
5.60
5.60
5.60
5.60
0.37
0.37
0.37
0.37
0.37
1.49
1.87
2.24
2.61
2.99
4.11
3.73
3.36
2.99
2.61
5
86
8.6
34.40
51.60
6
86
8.6
43.00
43.00
5
10
2.0
8.00
2.00
7
86
8.6
51.60
34.40
6
10
2.0
10.00
-
8
86
8.6
60.20
25.80
7
10
2.0
2.00
8.00
86
###
###
###
8
10
2.0
4.00
6.00
9
10
###
6.00
4.00
10
5
25
5.0
20.00
5.00
6
25
5.0
25.00
-
2.25
0.56
2.25
2.25
2.25
0.56
0.56
1.69
2.25
0.56
1.12
1.12
2.25
0.56
1.69
0.56
2.25
0.56
2.25
-
5
128.85
16.54
66.14
62.71
2.25
6
128.85
16.54
80.43
48.42
10.00
7
103.85
11.54
56.96
46.88
0.00
8
103.85
11.54
68.50
35.35
0.00
9
103.85
11.54
80.04
23.81
0.00
8.505
8.505
8.505
8.505
8.505
8.505
6.60
6.60
6.60
56.13
56.13
56.13
9
###
###
6.60
56.13
5
6
7
8
2.12242 2.164864 2.20816 2.25232
2.6
2.6
2.6
2.6
2.99447 3.009444 3.02449 3.03961
4.58
4.58
4.58
4.58
9
2.2974
2.6
3.0548
4.58
12.2969 12.35431 12.4127 12.4719

1.12266 1.12266 1.12266 1.12266
5.6133
5.6133 5.6133 5.6133
2.80665 2.80665 2.80665 2.80665
12.532
1.1227
5.6133
2.8067
9.54261
9.5426
8.505
8.505
6.60
56.13
9.54261 9.54261 9.54261
21.8395 21.89692 21.9553 22.0145
22.075
5
1.68
2.81
0.27
6
1.68
2.81
0.27
7
1.68
2.81
0.28
8
1.68
2.81
0.28
9
1.68
2.81
0.28
4.22
0.00
0.00
0.00
4.22
0.00
0.00
0.00
4.21
0.00
0.00
0.00
4.21
0.00
0.00
0.00
4.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6
7
8
56.133 58.6845
61.236
28.89
23.95
24.01
27.24
34.74
37.23
6.73596 6.73596 6.73596
2.80665 2.80665 2.80665
17.70
25.19
27.69
3.22
2.49
1.70
14.5
22.7
26.0
0.0
0.0
0.0
14.5
22.7
26.0
9
61.236
24.07
37.17
6.736
2.8067
27.63
0.82
26.8
0.0
26.8
5
53.5815
28.83
24.75
6.73596
2.80665
15.21
3.88
11.3
0.0
11.3
10
-1.68
-2.81
-0.28
he bank invests together with the investor as co-owners of the project
5
56.13
56.13
0.00
6
56.13
56.13
0.00
7
56.13
56.13
0.00
8
9
56.13 79.95
56.13 56.13
0.00
0.00
10
4.51
0.00
2.81
23.81
1.70
22.45
22.51
22.57
22.64 22.70
-0.77
12.30
1.12
5.61
2.81
0.00
0.00
0.615
12.35
1.12
5.61
2.81
0.00
0.00
0.618
12.41
1.12
5.61
2.81
0.00
0.00
0.621
12.47 12.53 0.00

1.12
1.12 0.00
5.61
5.61 0.00
2.81
2.81 0.00
0.00
0.00 0.28
0.00
0.00 -1.68
0.624 0.628 0.631
33.68
33.62
33.56
33.50 57.25
0.00
0.00
0.00
33.68
33.62
33.56
0.00
5.28
0.00
0.00
33.50 57.25
5.28
ment point's of view
d semi-final product
Loan from bank and government

5
56.13
56.13
0.00
56.13
56.13
0.00
56.13
56.13
0.00
10
56.13 79.95
56.13 56.13
0.00
0.00
4.51
0.00
2.81
23.81
1.70
33.03
33.09
33.16
33.22 31.74
-0.77
12.30
1.12
5.61
2.81
0.00
0.00
0.615
10.58
12.35
1.12
5.61
2.81
0.00
0.00
0.618
10.58
12.41
1.12
5.61
2.81
0.00
0.00
0.621
10.58
12.47 12.53 0.00

1.12
1.12 0.00
5.61
5.61 0.00
2.81
2.81 0.00
0.00
0.00 0.28
0.00
0.00 -1.68
0.624 0.628 0.631
10.58
9.04 0.00
23.10
23.04
22.98
22.91 48.21
5.28
0.00
0.00
0.00
0.00
23.099 23.038 22.977 22.914
0.00
0.00
### 5.275
Economic Prices)
5
56.13
56.13
0.00
56.13
56.13
0.00
56.13
56.13
0.00
10
56.13 79.95
56.13 56.13
0.00
0.00
4.51
0.00
2.81
23.81
1.70
21.84
21.89
21.95
22.01 22.07
-1.40
12.30
1.12
5.61
2.81
0.00
0.00
12.35
1.12
5.61
2.81
0.00
0.00
12.41
1.12
5.61
2.81
0.00
0.00
12.47 12.53
1.12
1.12
5.61
5.61
2.81
2.81
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.28
-1.68
34.30
34.24
34.18
34.12 57.88
5.91
5
0
0.0
0
6
0
0.0
0
7
0
0.0
0
8
0
0.0
0
9
0
0.0
0
10
0
0.0
0
5
0
0.0
6
0
0.0
7
0
0.0
8
0
0.0
9
0
0.0
10
0
0.0
35.72
paribus (other thing holding))

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1

Real interest rate per annum

Raw material (year 2)

Annual increase in raw material

2.6 Million Rs each year (year 2 to year 9)

Subsidy on power and fuel

Salaries and wages

Annual increase in salaries and wage

For tax purposes, depreciation

10% of sales revenue

Repairs and maintainance

Operating life of project

Opportunity cost of Abhishek salary

0.50% per year

0.3 million Rs/hectare

0.14 million Rs/hectare

0.17 million Rs/hectare

Economic Rate of Return

Domestic inflation rate

Building and Civil works

Foreign inflation rate

Foreign exchange rate

Capital Equipment (exported)

Coporate tax rate

Capital Equipment (imported)

Capital issue expenses

0.6 Million RS from year 0 to year 10

(as % of cost of building and civil works and capital equipment)

Technical know - how fees

Power and fuel

(Real figure, million)

3.1 Depreciation schedule

GDBL loan repayment

Salvage value (scrapped assets)

3.2 Depreciation schedule

3.3 Depreciation schedule

3.4 Depreciation schedule

3.5 Depreciation schedule

Change of Working capital

140 Total cost

Question 3 Financial Cash Flow construction

CASH FLOW (Total Investment Point of

- Opportunity cost of Abhishek salary

0.624 0.628 0.631

33.50 33.43 29.09

Net Cash Flow before tax

tax shield of loan interest

Question 4 CASH FLOW (Total Owner's point of

33.50 33.43 29.09

56.13 56.13 28.32

0.355 0.355 0.355 0.355 0.355 0.355

Net Cash Flow before tax

* only materials'inventory and semi-final product

Calculate IRR & NPV (Ke = 12%)

Question 5 ECONOMIC CASH FLOW

Net Cash Flow

22.56 24.04 29.09

22.315 20.495 12.684 22.622 22.560

(Valued at Economic Prices)

### 19.893 17.197

56.13 56.13 32.70

0.355 0.355 0.355 0.355 0.355 0.355

33.14 33.08 33.47

Calculate IRR & NPV (K = 15%)

Year 10 = Tinhs theo gia ki vong = 1million30% + 80%4.4