Model Scheme IS CFS Fcfe BS Irr Coc NPV/DCF Development Schedule
Model Scheme IS CFS Fcfe BS Irr Coc NPV/DCF Development Schedule
Model Scheme IS CFS Fcfe BS Irr Coc NPV/DCF Development Schedule
IS
CFS FCFE
DEVELOPMENT BS
SCHEDULE
IRR > CoC NPV/DCF
DEBT DECISION
SCHEDULE MAKING
Development Phase
Years 0 1 2
Development Stage
Funding Mix
Equity ADDED 20% 6,000,000
Debt ADDED 80% 24,000,000
Capitalised Interest
Capitalised Interest (Soft Cost) 10% 2,400,000
Debt Schedule
Opening Debt - 24,000,000
Additions / Repayment 24,000,000 (4,800,000)
Closing Debt 24,000,000 19,200,000
D/E
Assumptions
Current Case Base
Initial Sales Volume (Units) 4000 <==YEAR-2
Initial Sales Price Per Unit 4450 <==YEAR-2
Initial Cost Price Per Unit 2300 <==YEAR-2
Growth in Sales Volume 5%
Growth in Sales Price Per Unit 10%
Growth in Cost Per Unit 8%
Income Statement
Sales
Cost of Goods Sold
Selling & Administration Costs 25%
EBITDA
Depreciation
EBIT
Interest, Net
EBT
Tax 30%
PAT OR NI
Balance Sheet
Liabilities
Debt 24,000,000 19,200,000
DTL
Equity Capital 6,000,000 6,000,000
Retained Earnings - -
Total Liabilities 30,000,000 25,200,000
Assets
Fixed Assets, Gross 30,000,000 30,000,000
Accumulated Depreciation 4 - -
Net Fixed Assets 30,000,000 30,000,000
Cash - (4,800,000)
Working Capital 10% - -
Total Assets 30,000,000 25,200,000
Checksum - -
Net Income - -
Depreciation - -
Change in W/C (net current asset) - -
CHANGE IN DTL
Net OCF - -
BOP Cash - -
EOP Cash - (4,800,000)
Interest, Net
Returns Analysis
IRR Sensitiv
Net Present Value 15% (2,723,378) 10.24%
Internal Rate of Return 10.24% 10.0%
12.5%
15.0%
17.5%
20.0%
Project Life 4 Years
3 4 5 6 7
COD
- - - - 30,000,000
- - - - 30,000,000
IRR Sensitivity with Initial Sales Price and Growth in Sales Volume
115 120 125 130 135
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PROJECTS
DEVELOPMENT PHASE
TECHNICAL TEAM
LAND
CONST.
EQUIP
MISC
3 YEARS TO BUILD, TOTAL HARD COST = 300, D/E =1, INT = 10%
100
100
0
0
100
5 <== MATCHING ENTRY
105 <== DEPRECIATING (TPC)
0
0
200
17
217
0
CIRCULAR REF ERROR
TPC = HC + SC
DEBT INT = SC
ITERATIONS REPEAT
ITER-1 ITER-2 ITER-3 ITER-4 ITER-5 ITER-6 ITER-7 ITER-8 ITER-9
HC 100 100 100 100 100 100 100 100 100
SC = INT 5 5.25 5.2625 5.263125 5.2631563 5.2631578 5.2631579 5.2631579
TPC 100 105 105.25 105.2625 105.26313 105.26316 105.26316 105.26316 105.26316
- 0.00
ITER-10 ITER-11 ITER-12 ITER-13 ITER-14
100 100 100 100 100
5.2631579 5.2631579 5.26315789 5.2631579 5.2631579
105.26316 105.26316 105.263158 105.26316 105.26316