Excel Work (WindMill Project )

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Kanza Sana F10ba022

Ezza Riaz F10ba050

Almas Shahzadi F10ba023

Hira Batool F10ba009

Aneka Noor F10ba042

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F10ba022

F10ba050

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GENERAL ASSUMPTIONS

EQUITY 40% PKR 21,500,000 DEBT 60% PKR 32,250,000 TAX RATE 30%NO. OF YEARS 5COST OF EQUITY 18%COST OF DEBT 13%WACC 13%LAND 12400000BUILDING 15000000LIFE OF BUILDING 40TAX & DUTIES 30%CASH IN HAND 10000000LIFE OF PLANT 40Dividends 18%Working Capital Recovery at Year5 85%

EXPENSE ASSUMPTIONS

Allocated amount for wages 305,000

administrative expenses 4000

expenses 5500

fuel testing expense 5000

utility expenses 5000

repair & maintainance expense 8000

miscellaneous expense 2000

Total Expenses 334,500

GROWTH RATE ASSUMPTIONS

SALE PRICE PER UNIT 25SALE GROWTH RATE 3%Growth Rate of purchase price 2%

increase per person salary5% blue collar 70 2,500

white collar 20 6,500

6%

8%

2%

7%

4%

2%

PROJECT COST &WCINITIAL INVESTMENT

LANDBUILDINGMACHINERY COSTFreight And InstallationInsuranceOutsourcing CostTAX & DUTIESTotal Machine Cost

Working CapitalTOTAL INITIAL INVESTMENT

WORKING CAPITAL CALCULATION

CASHINVENTORYNet Working CapitalDIFFERENCE

LAND CALCULATION

price

PROJECT COST &WCINITIAL INVESTMENT

PKR 12,400,000 PKR 15,000,000 PKR 2,880,000 PKR 5,000,000 PKR 6,000,000 PKR 1,900,000 PKR 570,000 PKR 16,350,000

PKR 10,000,000 PKR 53,750,000

WORKING CAPITAL CALCULATION0 1 2 3

10,000,000 40,000 40,000 2,000

10,000,000 40,000 40,000 2,000 (9,960,000) - (38,000)

IN MARLA IN KANAL IN ACRE REQUIRED NO OF ACRES

95,000 1,900,000 15,200,000 70

PROJECT COST &WCMachinery

quantity per unit costCutting machines 3 150,000 Welding Machines 4 140,000 lifting trucks 4 135,000 computers 25 40,000 Generators 2 120,000 Other equipments 90,000 total

WORKING CAPITAL CALCULATION4 5

40,000 - 40,000 - 38,000 34,000

REQUIRED NO OF ACRES LAND

1,064,000,000

PROJECT COST &WCMachinery

total cost 450,000 560,000 540,000 1,000,000 240,000 90,000 PKR 2,880,000

WORKING CAPITAL CALCULATION

AMORTIZATION TABLE

LOAN AMOUNT0 32,250,000 1 27,273,356 2 21,649,748 3 15,295,071 4 8,114,287 5 (0)

AMORTIZATION TABLE

PMT INTEREST PAID PRINCIPAL

9,169,144 4,192,500 4,976,644 9,169,144 3,545,536 5,623,608 9,169,144 2,814,467 6,354,677 9,169,144 1,988,359 7,180,785 9,169,144 1,054,857 8,114,287

DEPRECIATION EXPENSES

BUILDING DEPRECIATIONDEPRECIATION(STRAIGHT-LINE)

MACHINE DEPRECIATIONDEPRECIATION(STRAIGHT-LINE)


1 2 3 4

PKR 375,000 PKR 375,000 PKR 375,000 PKR 375,000

408,750 408,750 408,750 408,750 PKR 783,750 PKR 783,750 PKR 783,750 PKR 783,750


5

PKR 375,000

408,750 PKR 783,750

EXPENSES

1Allocated amount for wages 305,000 administrative expenses 5,500 expense 5,000 fuel testing expense 5,000 utility expenses 8,000 repair & maintainance expense 2,000 miscellaneous expense 334,500 Total Expenses 665,000

EXPENSES

2 3 4 5 320,250 336,263 353,076 370,729 5,830 6,180 6,551 6,944 5,400 5,832 6,299 6,802 5,100 5,202 5,306 5,412 8,560 9,159 9,800 10,486 2,080 2,163 2,250 2,340 341,190 348,014 354,974 362,074 688,410 712,813 738,255 764,787

M

RAW MATERIAL

Steel Sheets 400,000 Iron sheets 120,000 Zinc Alloy Sheets 80,000 Utility Box 60,000 Electric Wires 50,000 Nacelles 100,000 Rotar Blades 200,000 Rods 100,000 Handles 100,000 Gear Box 60,000 Copper Coils 22,000 Screws 5,000 Towers 1,000,000 Cables 100,000 Fibre Glass 60,000 Misc. 30,000 total purchases 2,487,000

Year 1increase in purchase 2487000

RAW MATERIALRequired(24x12)

Value of per square feet PKR 1,000 400

2 3 4 52536740 2587474.8 2639224 2692008.7819

COST OF GOOD SOLD STATEMENTYear 1

Beginning Inventory - ADD Purchases 120,000

Stock Available to sell 120,000 LESS Inventory On Hand At The Of The Year 40,000

COGS 80,000

Year 2:Beginning Inventory 40,000

ADD Purchases 100,000 Stock Available to sell 140,000

LESS Inventory On Hand At The Of The Year 40,000 COGS 100,000









LESS Inventory On Hand At The Of The Year - COGS 80,000

COST OF GOOD SOLD STATEMENTYear 1

6000 units @ 20 each 6000 20

2000 units @ 20 each 20004000

Year 2:2000

5000 units @ 20 each 5000 207000

2000 units @ 20 each 20005000

Year 3:2000

3000 units @ 20 each 3000 205000

100 units @ 20 each 1004900

Year 4:100

4000 units @ 20 each 4000 204100

2000 units @ 20 each 20002100

Year 5:2000

2000 units @ 20 each 2000 204000

0 unit 04000

REVENUE1

Sale Price Per Unit 25.00 No. Of Units Sold 1,000,000 Net Revenue 25,000,000

REVENUE2 3 4 5

25.75 26.5 27.3 28.1 1,030,000 1,060,900 1,092,727 1,125,509 26,522,500 28,137,720 29,851,307 31,669,252

INCOME STATEMENT1

Revenue 25,000,000 cost of good sold 80,000 gross profit 24,920,000 Operating Expenses 665,000 EBITDA 24,255,000 Depriciation & Amortization 783,750 Operating Income 23,471,250 Financial Expense 4,192,500 Pre-Tax Income 19,278,750 Income Tax 5,783,625

Net Income 13,495,125

INCOME STATEMENT2 3 4

26,522,500 28,137,720 29,851,307 100,000 98,000 42,000 26,422,500 28,039,720 29,809,307 688,410 712,813 738,255 25,734,090 27,326,908 29,071,052 783,750 783,750 783,750 24,950,340 26,543,158 28,287,302 3,545,536 2,814,467 1,988,359 21,404,804 23,728,690 26,298,943 6,421,441 7,118,607 7,889,683

PKR 14,983,362.61 16,610,083 18,409,260

INCOME STATEMENT5

31,669,252 80,000 31,589,252 764,787 30,824,465 783,750 30,040,715 1,054,857 28,985,857 8,695,757

20,290,100

RETAINED EARNING STATEMENT1

Retained Earnings(beginning) - Net Income 13,495,125 Dividends 2,429,123 Retained Earnings(ending) 11,066,003

RETAINED EARNING STATEMENT2 3 4 5

11,066,003 23,352,360 36,972,628 52,068,222 14,983,363 16,610,083 18,409,260 20,290,100 2,697,005 2,989,815 3,313,667 3,652,218 23,352,360 36,972,628 52,068,222 68,706,104

CASH FLOW STATEMENT0

Operating ActivitiesNet IncomeAdditionsDepreciation and amortization

SubtractionIncrease in inventorynet cash provided by operating activities

Long Term Investing Activities

FIXED ASSETS (43,750,000)net cash used in investing activities (43,750,000)

Financing Activities

Dividendsloan 32,250,000 repayment of loancapital 21,500,000 net cash used in financing activities 53750000net cash 10,000,000 opening cashclosing cash(in hand) 10,000,000

CASH FLOW STATEMENT1 2 3 4 5

13,495,125 14,983,363 16,610,083 18,409,260 20,290,100

783,750 783,750 783,750 783,750 783,750

40,000 - (38,000) 38,000 (40,000) 14,238,875 15,767,113 17,431,833 19,155,010 21,113,850

- - - - -

(2,429,123) (2,697,005) (2,989,815) (3,313,667) (3,652,218)

(4,976,644) (5,623,608) (6,354,677) (7,180,785) (8,114,287)

-7405766.52320385 -8320613.01532 -9344491.753712 -10494451.56933 -11766504.7886573 6,833,108 7,446,500 8,087,342 8,660,559 9,347,345 10,000,000 16,833,108 24,279,608 32,366,950 41,027,508 16,833,108 24,279,608 32,366,950 41,027,508 50,374,854

BALANCE SHEETASSETSCURRENT ASSETSCASH INVENTORY

FIXED ASSETSLANDBUILDINGSDep.NET BUILDING VALUEMachineless: DEPRECIATIONNET MACHINE VALUETotal fixed assets

Total AssetsLIABILITIESCURRENT LIABILITYLONG TERM DEBTtotal liabilityEQUITYcapitalRETAINED EARNINGStotal equity

Total Equity & Liabilities

BALANCE SHEET0 1 2 3

10000000 16,833,108 24,279,608 32,366,950 40,000 40,000 2,000

12400000 12,400,000 12,400,000 12,400,000 15000000 15,000,000 14,625,000 14,250,000

375,000 375,000 375,000 15000000 14,625,000 14,250,000 13,875,000 16350000 16,350,000 15,941,250 15,532,500

408,750 408,750 408,750 16350000 15,941,250 15,532,500 15,123,750 43750000 42,966,250 42,182,500 41,398,750

53750000 59,839,358 66,502,108 73,767,700

4976644 5,623,608 6,354,677 7,180,785 27273356 21,649,748 15,295,071 8,114,287 32250000 27,273,356 21,649,748 15,295,071

21500000 21,500,000 21,500,000 21,500,000 0 11,066,003 23,352,360 36,972,628

21500000 32,566,003 44,852,360 58,472,628

53750000 59,839,358 66,502,108 73,767,700

BALANCE SHEET4 5

41,027,508 50,374,854 40,000 -

12,400,000 12,400,000 13,875,000 13,500,000 375,000 375,000 13,500,000 13,125,000 15,123,750 14,715,000 408,750 408,750 14,715,000 14,306,250 40,615,000 39,831,250

81,682,508 90,206,104

8,114,287 - (0) - 8,114,287 -

21,500,000 21,500,000 52,068,222 68,706,104 73,568,222 90,206,104

81,682,508 90,206,104

INCREMENTAL CASH FLOW0

Net IncomeDepreciation (machine)Depreciation (BUILDING)Increase in working capitalRecovery of working capital

Cash Flow (53,750,000)

WACC 12.66%NPV 15,899,524 IRR 24.46%PI 0.03

INCREMENTAL CASH FLOW1 2 3 4 5

13,495,125 14,983,363 16,610,083 18,409,260 20,290,100 408,750 408,750 408,750 408,750 408,750 375,000 375,000 375,000 375,000 375,000 9,960,000 - 38,000 (38,000) -

34,000

24,238,875 15,767,113 17,431,833 19,155,010 21,107,850

Assets Management RatiosFixed Asset Turnover

Sales/Fixed AssetsYear 1Sales 25,000,000 Fixed Asset 42,966,250 Fixed Asset Turnover 0.58

Total Asset Turnover RatioSales/Total Fixed Assets

Year 1Sales 25,000,000 Total Asset 59,839,358 Total Asset Turnover 0.42

Inventory Turnover RatioSales/ Inventory

Year 1Sales 25,000,000 Inventory 40,000 Inventory Turnover 625.00

Total Debt to Total Equity RatioTotal Debt/ Total Equity

Year 1Total Debt 21,649,748 Total Equity 32,566,003 Debt to Equity 0.66

Profitability Ratios Profit Margin

(Net income / Sales ) * 100Year 1Net Income 13,495,125 Sales 25,000,000 Profit Margin 53.98

Gross Profit Margin(Gross Profit / Sales ) * 100

Year 1Gross Profit 24,255,000 Sales 25,000,000 Gross Profit Margin 97.02

Operating Profit Margin(EBIT / Sales ) * 100

Year 1EBIT 23,471,250 Sales 25,000,000 Operating Profit Margin 93.885

Return On AssetsNet Income/Total Assets

Year 1Net Income 13,495,125 Total Assets 59,839,358 ROE 0.23

Return On EquityTotal Assets/Total Common Equity

Year 1Total Assets 59,839,358 Total Common Equity 32,566,003 ROE 1.84

Basic Earning PowerEBIT/Total Assets

Year 1EBIT 23,471,250 Total Assets 59,839,358 BEP 0.39

Assets Management RatiosFixed Asset Turnover

Sales/Fixed Assets2 3 4 5

26,522,500 28,137,720 29,851,307 31,669,252 42,182,500 41,398,750 40,615,000 39,831,250

0.63 0.68 0.73 0.80

Total Asset Turnover RatioSales/Total Fixed Assets

2 3 4 5 26,522,500 28,137,720 29,851,307 31,669,252 66,502,108 73,767,700 81,682,508 90,206,104

0.40 0.38 0.37 0.35

Inventory Turnover RatioSales/ Inventory

2 3 4 5 26,522,500 28,137,720 29,851,307 31,669,252 40,000 2,000 40,000 -

663.06 14068.86 746.28 0.00

Total Debt to Total Equity RatioTotal Debt/ Total Equity

2 3 4 5 15,295,071 8,114,287 (0) - 44,852,360 58,472,628 73,568,222 90,206,104

0.34 0.14 0.00 0.00

Profitability Ratios Profit Margin

(Net income / Sales ) * 1002 3 4 5

14,983,363 16,610,083 18,409,260 20,290,100 26,522,500 28,137,720 29,851,307 31,669,252

56.49 59.03 61.67 64.07

Gross Profit Margin(Gross Profit / Sales ) * 100

2 3 4 5 25,734,090 27,326,908 29,071,052 30,824,465 26,522,500 28,137,720 29,851,307 31,669,252 97.02739183712 97.1184143818474 97.3861950158527 97.33246848734

Operating Profit Margin(EBIT / Sales ) * 100

2 3 4 5 24,950,340 26,543,158 28,287,302 30,040,715 26,522,500 28,137,720 29,851,307 31,669,252

94.072 94.333 94.761 94.858

Return On AssetsNet Income/Total Assets

2 3 4 5 14,983,363 16,610,083 18,409,260 20,290,100 66,502,108 73,767,700 81,682,508 90,206,104

0.23 0.23 0.23 0.22

Return On EquityTotal Assets/Total Common Equity

2 3 4 5 66,502,108 73,767,700 81,682,508 90,206,104 44,852,360 58,472,628 73,568,222 90,206,104

1.48 1.26 1.11 1.00

Basic Earning PowerEBIT/Total Assets

2 3 4 5 24,950,340 26,543,158 28,287,302 30,040,715 66,502,108 73,767,700 81,682,508 90,206,104

0.38 0.36 0.35 0.33

SENSITIVITY ANALYSISRevenue

Revenue(YEAR1) 25,000,000 Increase 20%Base 0%Decrease -20%

EXPENSE

EXPENSE(YEAR1) 665,000 INCREASE 15%BASE 0%DECREASE -15%

SENSITIVITY ANALYSISRevenue

NPV 15,899,524

30,000,000 19,079,429 25,000,000 15,899,524 20,000,000 12,719,619

EXPENSENPV

15,899,524 764,750 18,284,453 665,000 15,899,524 565,250 13,514,596

Year 0

Revenue:Units soldSelling Price per unitTotal Revenues

COGS

OE+FC+DEP

Total Cost

Profitdep(building)dep(machine)

SCENARIO ANALYSIS

nowc 0initial Investment -53,750,000

incremental cash flows -53,750,000NPV 15,899,524IRR 24%

WACC 12.7%years 5

Year 1 year 2 year 3

1,000,000 26 1,060,90025 26 27

25,000,000 663 28,137,720

80,000 100,000 98,000

11,424,875 11,439,137 11,429,637

11,504,875 11,539,137 11,527,637

13,495,125 -11,538,474 16,610,083375,000 375,000 375,000408,750 408,750 408,750

SCENARIO ANALYSIS

9,960,000 0 38,000

24,238,875 -10,754,724 17,431,833

year 4 year 5

1,092,727 3027 28

29,851,307 844

42,000 80,000

11,400,047 11,299,152

11,442,047 11,379,152

18,409,260.21 -11,378,308375,000 375,000408,750 408,750

SCENARIO ANALYSIS

-38,000 34,000

19,155,010 -10,560,558

Scenario AssumptionsBest

Revenues 10%Variable Cost -10%

year 1 year 2worse 22,500,000 597revenuesbest 27,500,000 729

worse 88,000 110,000variable costbest 72,000 90,000

SCENARIO ANALYSIS

Scenario Assumptionsbase Worst

-10%10%

year 3 year4 year 525,323,948 26,866,177 760

30,951,492 32,836,438 929

107,800 46,200 88,000

88,200 37,800 72,000

SCENARIO ANALYSIS

Scenario SummaryCurrent Values: BASE CASE WORSE CASE

Changing Cells:REVENUE

YAER 1 25,000,000 25,000,000 22,500,000 YEAR 2 663 663 597 YEAR 3 28,137,720 28,137,720 25,323,948 YEAR 4 29,851,307 29,851,307 26,866,177 YEAR 5 844 844 760

COGSYAER 1 80,000 80,000 88,000 YEAR 2 100,000 100,000 110,000 YEAR 3 98,000 98,000 107,800 YEAR 4 42,000 42,000 46,200 YEAR 5 80,000 80,000 88,000

Result Cells:

NPV 385,020,601 385,020,601 166,970,266IRR 38% 38% 24%

Notes: Current Values column represents values of changing cells attime Scenario Summary Report was created. Changing cells for eachscenario are highlighted in gray.

BEST CASE

27,500,000 729 30,951,492 32,836,438 929

72,000 90,000 88,200 37,800 72,000

603,070,93751%

Excel Work (WindMill Project )

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