Post on 22-Nov-2014
description
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Mathematics Group Project Work
Submitted By:
•Chhitiz Shrestha
•Manzil Bhattarai
•Sheeba Maskay
•Zhang Peng
•Rahul Rai Submitted To:
Mr. Ramesh Chauhan
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IntroductionDepartmental store
◦ Retail establishment which specializes in satisfying consumer's personal and residential durable goods,
◦ Certain department stores are further classified as discount department stores,
◦ Sells products including: Apparel, Furniture, Home appliances, Electronics, Etc.
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IntroductionDepartment stores are usually part of a retail
chain of many stores situated around a country or several countries,
The world's largest department store, the Shinsegae Centum City in South Korea,
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Plan after taking the loanNote: This report is based on the assumption
that the financial situation in the related banks is sound and suitable. Thus we are allowed to borrow the required sum of money without any sort of difficulty.
Open a medium sized departmental store in the name of Empirical Investment Group (EIG),
Require a loan of about 40 lakhs,Plan to invest 60 lakhs from our personal
funds,
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Contd...
Assumed that it would take us of about 3 months to gather the capital,
Allocation of the capital starts from the 1st week of 2010,
Necessary funds will be allocated within the first week of April 2010,
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Contd...Locate a suitable place at Baneshwor,Rs. 50 thousand is agreed as advance and
we would require paying a monthly rent of Rs. 1.5 lakhs for the tenure of 10 years,
Plan to import goods from abroad as well,Contractual costs Rs. 50,000 Task to finish within the second week of
April,
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Contd…Rs. 12 lakhs each from five members,Joint capital of Rs. 40 lakhs (loan amount) +
60 lakhs (invested amount) = Rs. 1 crore (total capital),
Also need to buy racks and shelves to display the goods,
Separated the budget of Rs. 5 lakh for buying these items,
Rs. 25 lakhs would be spent for the goods that are to be sold in our store,
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Contd…Number of employees should not be
greater than 17,Hiring of staffs would be complete within
the end of April or so and cost us Rs. 50 thousand (Approx.)
Would be ready to commence our business form the first week of May 2010.
Note: We assured a piece of land worth Rs. 55 lakhs as collateral,
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Tabular Representation
Expenses Amount
Rent advance Rs. 50,000
Contractual Negotiations Rs. 50,000
Racks/Shelves Rs. 5,00,000
Goods Rs. 25,00,000
Employee Hiring Expenses Rs. 50,000
Rent till April (minus advance 50,000) Rs. 4,00,000
Salary till April (from March) Rs. 1,75,000
Petty Expenses Rs.1,00,000
Total Rs. 38,25,000
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Graphical Representation
Expenses till May 1st 2010
Rent advance Contractual Nego-tiations
Racks/Shelves GoodsEmployee Hiring Expenses
Rent till April (minus advance 50,000)
Salary till April (from March)
Petty Expenses
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Why Himalayan Bank ltd?Aims to help establishment, growth and
expansion of small and medium sized enterprises,
Business houses coming from industrial, trading and service sector can avail of to meet their short-term and long-term financing needs,
Interest rate – 9.5% per annum,Other banks considered
◦ Nabil Bank◦ Nepal Bank Ltd.
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Process of taking loanThree common stages:Loan Application Name Legal status Location Qualifications Occurrence Past dealings Dealings in other banks Function
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Contd… Amount sought Proceeds Profitability Business worth Capability Security
InterviewInspection and Enquires
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When to start repaying the sum?About 3 to 4 months to set up the store,Thus we would need start to repay the
sum from the fifth month,But we start to pay from the first monthWe use separate personal funds to support
the repaying of the borrowed sum,Until the investment starts to yield
income of its own.
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Expected earning and expenditure
1 2 3 4 5 6 7 8 9 100
2000000
4000000
6000000
8000000
10000000
12000000
IncomeExpenditure
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Mathematical calculation
Present Value = 4000000
Annuity Due:
P.V = 40, 00,000
R= 9.5% P.A = 9.5/12 (per month) = 0.1791
I= 0.0079
N=72 [6 × 12 (in months)]
P.V = P / I × [ 1 – {1 / ( 1 + I ) ^n } ]
4000000 = P / 0.0097 [ 1 – { 1 / (1.0097) ^72} ]
P = 73058.745 (Approx.)
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Contd…Interest:
Interest = 9.5% of Rs. 40, 00,000 = Rs. 3, 80,000
So,
In 1 year (total 6 years) = 63,333.33(Approx)
In a month = 5,277.77 (Approx)
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References:
Internet◦www.google.com◦www.wikipedia.com◦www.answers.com
LibraryNewspapersMagazines
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Contact Information:
Nepal Bank Ltd:◦Dharmapath, Kathmandu
Tel.: 422 2397 Email: info@nepalbank.com.npHimalayan Bank:
◦Thamel, KathmanduTel.: 4227749, 4250201 Email: himal@himalayanbank.com
Nabil Bank:◦Tripureshwor, Kathmandu
Tel.: 44117015-16 Web Address: www.nabilbank.com
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Thank You