Fin 202- Group Assignment

p c l h n t Ms h m Le H S ei t a k o . a i a a P n frh ligu t d t i po c o e n s o o hs rj t p e table of content Excutive compendious .. P. 3 Business Plan. P. 3 Vision. P. 3 primary(prenominal) ServicesP. 3 Evaluating the market. P. 4 fit outancial Plan.. P. 5 Initial investiture.. P. 5 Interest retributionP. 6 engage salary P. 6 Variable represent.. P. 7 fix represent per stratum for Selling and Admin activities. P. 7 Expected number of customers. P. 7 original expense. P. 8 legal injury of from each one availsP. 8 r in timeue PlanP. meshing & Loss Plan.. P. 9 Break change surface for each gradeP. 9 Cash flow& Analysis.. P. 10 Conclusion.. P. 10 Reference.. P. 11 Excutive summary In site to ask customers a new attend, especially for the female customers, our group dogged to roleplay a new project- call pr yettion Paradise. Nowadays, need of fashioning a camp-made barroom or chocolate of female customers for their lovers, friends or families is very steepschool but not everyone has enough money to taint for herself an expensive oven or cover homework tools. Our project is created to solve this problems.We translate a service for customer to hire our kitchen with full machines & tools of ginmill provision to made a measure or chocolate. We also adds ingridiants in take a crap of cake ingridients in 1st floor and Class of learning how to spring a cake 2 times/week. With this advantages and professional of this service, we believe we pull up stakes achieve the highest expectation from customer. To be the outgrowth company provide service in hiring patty suck up machines and quills, Cake paradise have high grow rate and fullfill the need of customers about the cake do-which means fat and deserve to be invested.Business plan Vision clients Focus High note run Grown up by 100% in the scratch 5 years Making profits since 2nd or third year operating main(prenominal) Services 1st Floor break of Cake ingridientswhere you can picture any kinds of cake ingridients and tools. 2nd & third Floor Cake paradises Kitchen for hiring with fullfill cake fashioning s equipment and tools. It is call DIY service- With VND120,000 for 3 hours, you lead have full of cake making equipment and tools to make your ideal cake for your lovers.Every Friday and Sunday, we have classes of making cake, which be teached by cookers who are very experienced in making cakes- With VND400,000 for a 4-hour class, you pass on learn to make 3 kinds of delicious cakes or chocolate in the world, it is a best determine for any learners. Evaluating Market Instead of release to a cake shop and spoil for the lovers or family, friends a cake, recently, more girls and women want to make for her relatives a cake by herself.This gift is unusual and more meaningful to her relatives and in other way, it prove the womenliness and caringful of who made it. It at present creates a trend not only in making cake but also in making h andsewn stuffs. We notice that at that place is a lack for cake handmade market. We can easily decide handmake s materitals and tools in the market as paper, stuff,.. with a kind of specious impairment. But in making cake, the ingridients, especially the cake making equipments are very expensive.Not everyone has enough money to buy for herself a expensive oven or cooking tools. When in the market, thither are legion(predicate) suppliers provides for other handmade things but there arent a supplier which provide hiring cake making machine & tools although the demand of it is very high. Seeing this, our group unflinching to bring Cake paradise service to customer. Financial Plan Innital investment We plan the project get out be implemented in 5 years For the long-term assets, time for full depreciation is 5 years. No. creature& Equipment seat of government Expense 1st Floor - unwrap for Cakes ingridients Good shelf Refrigerator slacken Electronic Cash Regristor be of Insta llment& Decoration 2nd & tertiary Floor- Place for DIY and tuition Kitchen cupboard Oven Refrigerator Hand-mixer Blender Gas cooker buff Table be of Installment & Decoration quaternary Floor -Office Destop & PC Phones Printer Office Table and chairs live of Installment& Decoration on the job(p) capital for the zero year Uniform for Staff Training data track for staff Tools for the kitchen Tools for the office CashINITAL INVESTMENT Quantity live per Unit arrive salute 148,500,000 17,800,000 4,800,000 3,500,000 1,000,000 3,500,000 5,000,000 99,900,000 30,000,000 18,000,000 26,000,000 2,800,000 1,100,000 4,000,000 4,000,000 4,000,000 10,000,000 30,800,000 20,000,000 800,000 3,000,000 5,000,000 2,000,000 45,000,000 2,000,000 3,000,000 5,000,000 5,000,000 30,000,000 193,500,000 29,700,000 1 1 1 600,000 3,500,000 1,000,000 3,500,000 5,000,000 15,000,000 3,000,000 13,000,000 700,000 550,000 2,000,000 1,000,000 1,000,000 10,000,000 10,000,000 800,000 3,000,000 1,000,000 2,000,000 200,000 500,000 TOTAL DEPRECITAION 2 6 2 4 2 2 4 4 2 1 1 5 10 6 Interest Payment division Quarter 1 I II leash IV 2 I II terzetto IV 3 I II III IV 4 I II III IV 5 I IIIII IV INTEREST PAYMENTS (VND) Beginning agreement Principal Payment Interest Payment occur Payment keep down Payment/ flux Ending equilibrium 80,000,000 4,000,000 2,400,000 6,400,000 24,880,000 76,000,000 76,000,000 4,000,000 2,280,000 6,280,000 72,000,000 72,000,000 4,000,000 2,160,000 6,160,000 68,000,000 68,000,000 4,000,000 2,040,000 6,040,000 64,000,000 64,000,000 4,000,000 1,920,000 5,920,000 22,960,000 60,000,000 60,000,000 4,000,000 1,800,000 5,800,000 56,000,000 56,000,000 4,000,000 1,680,000 5,680,000 52,000,000 52,000,000 4,000,000 1,560,000 5,560,000 48,000,000 48,000,000 4,000,000 1,440,000 5,440,000 21,040,000 44,000,000 44,000,000 4,000,000 1,320,000 5,320,000 40,000,000 40,000,000 4,000,000 1,200,000 5,200,000 36,000,000 36,000,000 4,000,000 1,080,000 5,080,000 32,000,000 32,000,000 4,000,000 9 60,000 4,960,000 19,120,000 28,000,000 28,000,000 4,000,000 840,000 4,840,000 24,000,000 24,000,000 4,000,000 720,000 4,720,000 20,000,000 20,000,000 4,000,000 600,000 4,600,000 16,000,000 16,000,000 4,000,000 480,000 4,480,000 17,200,000 12,000,000 12,000,000 4,000,000 360,000 4,360,000 8,000,000 8,000,000 4,000,000 240,000 4,240,000 4,000,000 4,000,000 4,000,000 120,000 4,120,000 Notes Debt of VND80,000,000 from bank, maturity of 5 years, invade rate 12% Interest is paid in from the foremost month, question payment is incurred once a quarter hire payment hypothesize title 1 civiliseor 2 Secretary 3 restrainer 4 gross r heretoforeue Assistant 5 Cooking teacher 6 Securities natural Quantity 1 1 1 6 2 2 WAGE PAYMENTS (VND) course of study 1 course 2 72,000,000 75,600,000 42,000,000 44,100,000 48,000,000 50,400,000 144,000,000 151,200,000 96,000,000 100,800,000 48,000,000 50,400,000 450,000,000 472,500,000 family 3 79,380,000 46,305,000 52,920,000 158,760,000 105,840,000 52, 920,000 496,125,000 twelvemonth 4 83,349,000 48,620,250 55,566,000 166,698,000 111,132,000 55,566,000 520,931,250 course 5 87,516,450 51,051,263 58,344,300 175,032,900 116,688,600 58,344,300 546,977,813 Notes 1. Wages of controlor, Secretary, control, gross sales Assistant, Securities are included in Selling and Admin dogged expense each year 2. Wages of cooking teacher is included as Direct Labor for breeding Services 3. Wages growth rate is 5% each year Variable addressWe have three serve in this project, in general, to estimate the variable constitute, we estimate the variable exist beyond the number of customers we service. Services Included shop DIY instruction stunner Tool packgage 1 Tools package 2 Ingridients Using CPs kitchen Using CPs tools teacher Services Included bulk Tool package 1 Tool package 2 Ingridients Using CPs kitchen (gas, water, electricity exist,) Using CPs kitchen s tools instructor append VARIABLE COST PER CUSTOMER shitping DIY 500 3,500 s kill 500 3,500 15,000 3,000 10,000 500 3,500 15,000 50,000 3,000 10,000 50,000 132,000 4,000 32,000 Fixed appeal per year for Selling and Admin activities amend COST PER YEAR FOR ADMINSTRATIVE & SELLING ACTIVITIES Detail Per month Per year meshing bill 250,000 3,000,000 Electricity bill 1,500,000 18,000,000 Water bill 200,000 2,400,000 Phoning bill 200,000 2,400,000 ad exp 6,000,000 Other exp 1,000,000 12,000,000 43,800,000 Expected number of customers year 1 obtain DIY information Total expect NUMBER OF CUSTOMER year 2 year 3 year 4 3500 4550 5460 2920 3796 4555 768 998 1198. 1 7,188 9,344 11,213 year 5 5733 4783 1258 11,774 6020 5022 1321 12,363 We fill that because this is a new services which havent existed in the market so it provide have a numerous of customers The growth rate lead be 30%, 10% and 5% for the year of 2, 3, 4 and 5 individually , after the services enter the market. Total expense social class 0 Total Variable lives Shopping DIY tuition Total Fixed co nstitutes Wages Depreciation House Renting Fixed constitute of selling and admin Intersest payment Total cost TOTAL EXPENSE form 1 form 2 Year 3 Year 4 Year 5 208,816,000 271,460,800 325,752,960 342,040,608 14,000,000 18,200,000 21,840,000 22,932,000 93,440,000 121,472,000 145,766,400 153,054,720 101,376,000 131,788,800 158,146,560 166,053,888 512,380,000 354,000,000 29,700,000 60,000,000 43,800,000 24,880,000 721,196,000 528,160,000 371,700,000 29,700,000 60,000,000 43,800,000 22,960,000 799,620,800 544,825,000 390,285,000 29,700,000 60,000,000 43,800,000 21,040,000 870,577,960 562,419,250 409,799,250 29,700,000 60,000,000 43,800,000 19,120,000 904,459,858 359,142,638 24,078,600 160,707,456 174,356,582 580,989,213 430,289,213 29,700,000 60,000,000 43,800,000 17,200,000 940,131,851 damage of each services customer Year 1 Shopping DIY Learning Year 2 Shopping DIY Learning Year 3 Shopping DIY Learning Year 4 Shopping DIY Learning Year 5 Shopping DIY Learning 3,500 2,920 768 4,550 3,796 998 5,460 4,555 1,198 5,733 4,783 1,258 6,020 5,022 1,321 Variable be 14,000,000 93,440,000 101,376,000 18,200,000 121,472,000 131,788,800 21,840,000 145,766,400 158,146,560 22,932,000 153,054,720 166,053,888 24,078,600 160,707,456 174,356,582 Fixed cost Toatal cost Cost per customer Average cost in 5 year 512,380,000 51,238,000 65,238,000 18,639 15,138 230,571,000 324,011,000 110,963 92,074 230,571,000 331,947,000 432,223 360,406 528,160,000 52,816,000 71,016,000 15,608 237,672,000 359,144,000 94,611 237,672,000 369,460,800 370,053 544,825,000 54,482,500 76,322,500 13,978 245,171,250 390,937,650 85,822 245,171,250 403,317,810 336,637 562,419,250 56,241,925 79,173,925 13,810 253,088,663 406,143,383 84,915 253,088,663 419,142,551 333,186 580,989,213 58,098,921 82,177,521 13,652 261,445,146 422,152,602 84,059 261,445,146 435,801,728 329,932 Shopping DIY Learning Original Cost plus 1% Final Price Note We calculate the tot up cost of a service and base on it to estimate the pric e 15,289 17,000 For the Shopping services, the price is the average profit we gain from each shop bill 92,995 120,000Assume that the shop dont have inventory because the goods are directly taken from agent 364,010 400,000 revenue PlanYear 0 Shopping Customer benefit/bill DIY Customer Price Learning Customer Price Total Growth rate of revenue (%) Year 1 expect REVENUE Year 2 Year 3 Year 4 Year 5 59,500,000 77,350,000 92,820,000 97,461,000 102,334,050 3,500 4,550 5,460 5,733 6,020 17,000 17,000 17,000 17,000 17,000 350,400,000 455,520,000 546,624,000 573,955,200 602,652,960 2,920 3,796 4,555 4,783 5,022 120,000 120,000 120,000 120,000 120,000 307,200,000 399,360,000 479,232,000 503,193,600 528,353,280 768 998 1,198 1,258 1,321 400,000 400,000 400,000 400,000 400,000 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 30 20 5 5 Because this is a completely new services, so after the branch year, the number of customers make up sharply in the 2nd and third year, but in the fourth and fifth year when Cake paradise (C has the competitor, ( who enter the market to marriage this segment), the growth rate of CP extend slightly at 5%. Profit & Loss PlanYear 1 Revenue Variable Cost Contribute Margin Fixed Cost Earning before revenue task Earning after tax PROFIT AND LOSS PLAN Year 2 Year 3 Year 4 Year 5 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 208,816,000 271,460,800 325,752,960 342,040,608 359,142,638 508,284,000 660,769,200 792,923,040 832,569,192 874,197,652 512,380,000 528,160,000 544,825,000 562,419,250 580,989,213 (4,096,000) 132,609,200 248,098,040 270,149,942 293,208,439 28% 28% 28% 28% 28% (4,096,000) 95,478,624 178,630,589 194,507,958 211,110,076 We can see that in the startle year, because this is a new service and it needs time for the customers to discern and have the habit to use this service, so the earning after tax for the premiere year is negative. After the first year,the number of customers who k fo rthwith and use Cake Paradise service increase (beyond word of mouth), the earning after tax for the 2nd, third, 4th, fifth increase sharply. Break even for each yearYear 1 CM CM unit CM Ratio Break even point Break even revenue Safety of margin 508,284,000 70712. 9 0. 7088 7,246 722,878,741 (5,778,741) BREAK EVEN Year 2 Year 3 Year 4 Year 5 660,769,200 792,923,040 832,569,192 874,197,652 70712. 9 70712. 9 70712. 9 70712. 9 0. 7088 0. 7088 0. 7088 0. 7088 7,469 7,705 7,954 8,216 745,141,567 768,652,973 793,475,388 819,674,364 187,088,433 350,023,027 381,134,412 413,665,926 Cash flow We have, cost of capital was calculated by WACC effrontery ( ( ) ) Year 0 Revenue Operating Expense EBITDA D&A EBIT (1- Tax) NOPAT CFOP nifty expense works capital Add W. C scanty Cash flow Payback level Cost of capital NPV IRR MIRRCASH melt down Year 1 Year 2 Year 3 Year 4 Year 5 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 691,496,000 769,920,800 840,877,960 874,759,858 910,43 1,851 25,604,000 162,309,200 277,798,040 299,849,942 322,908,439 29,700,000 29,700,000 29,700,000 29,700,000 29,700,000 (4,096,000) 132,609,200 248,098,040 270,149,942 293,208,439 0. 72 0. 72 0. 72 0. 72 0. 72 (4,096,000) 95,478,624 178,630,589 194,507,958 211,110,076 25,604,000 125,178,624 208,330,589 224,207,958 240,810,076 (148,500,000) (45,000,000) (193,500,000) 2. 5 15. 30% 277,726,609 54% 30. 39% (45,000,000) 25,604,000 (58,500,000) (13,500,000) 111,678,624 (70,200,000) (11,700,000) 196,630,589 (73,710,000) (3,510,000) 220,697,958 (77,395,500) (3,685,500) 314,520,076 The Payback point isConclusion 1. 2. 3. 4. The project completely has the ability of reaching the break-even point from the first year. Payback period is nearly 2. 5 years, a very eliminate period in the whole process of 5 years. NPV is a convinced(p) numbers and IRR is at 54%, much more higher than the cost of capital. MIRR is at 30. 39%, a high figure. ? Although the initial investment is instead small, all the figures above have proved that this project is advantageous and promises to bring high profit. Reference Fundamental of corporate financial Book Vatgia. vn Kitchenart. wordpress. com Nguyenkim. vn particular thank to Ms. Pham Lien Ha to helps us to do this projectFin 202- Group Assignment p c l h n t Ms h m Le H S ei t a k o . a i a a P n frh ligu t d t i po c o e n s o o hs rj t p e Table of content Excutive thick .. P. 3 Business Plan. P. 3 Vision. P. 3 Main ServicesP. 3 Evaluating the market. P. 4 Financial Plan.. P. 5 Initial Investment.. P. 5 Interest PaymentP. 6 Wages Payment P. 6 Variable cost.. P. 7 Fixed cost per year for Selling and Admin activities. P. 7 Expected number of customers. P. 7 Total expense. P. 8 Price of each servicesP. 8 Revenue PlanP. Profit & Loss Plan.. P. 9 Break even for each yearP. 9 Cash flow& Analysis.. P. 10 Conclusion.. P. 10 Reference.. P. 11 Excutive summary In do to bring customers a new service, especially for the female customers, our group persistent to bring a new project- call Cake Paradise. Nowadays, need of making a handmade cake or chocolate of female customers for their lovers, friends or families is very high but not everyone has enough money to buy for herself an expensive oven or cake cooking tools. Our project is created to solve this problems.We provide a service for customer to hire our kitchen with full machines & tools of cake cooking to made a cake or chocolate. We also provides ingridiants in Shop of cake ingridients in 1st floor and Class of learning how to make a cake 2 times/week. With this advantages and professional of this service, we believe we will achieve the highest expectation from customer. To be the first company provide service in hiring Cake making machines and Tools, Cake paradise have high grow rate and fullfill the need of customers about the cake making-which means profitable and deserve to be invested.Business plan Vision Customers Focus High case services Grown up by 100% i n the first 5 years Making profits since 2nd or tertiary year operating Main Services 1st Floor Shop of Cake ingridientswhere you can find any kinds of cake ingridients and tools. 2nd & 3rd Floor Cake paradises Kitchen for hiring with fullfill cake making s equipment and tools. It is call DIY service- With VND120,000 for 3 hours, you will have full of cake making equipment and tools to make your ideal cake for your lovers.Every Friday and Sunday, we have classes of making cake, which are teached by cookers who are very experienced in making cakes- With VND400,000 for a 4-hour class, you will learn to make 3 kinds of delicious cakes or chocolate in the world, it is a best price for any learners. Evaluating Market Instead of passing play to a cake shop and buy for the lovers or family, friends a cake, recently, many girls and women want to make for her relatives a cake by herself.This gift is uncommon and more meaningful to her relatives and in other way, it prove the womenliness and caringful of who made it. It now creates a trend not only in making cake but also in making handmade stuffs. We notice that there is a lack for cake handmade market. We can easily find handmake s materitals and tools in the market as paper, stuff,.. with a quite tinny price. But in making cake, the ingridients, especially the cake making equipments are very expensive.Not everyone has enough money to buy for herself a expensive oven or cooking tools. When in the market, there are many suppliers provides for other handmade things but there arent a supplier which provide hiring cake making machine & tools although the demand of it is very high. Seeing this, our group opinionated to bring Cake paradise service to customer. Financial Plan Innital Investment We plan the project will be implemented in 5 years For the long-term assets, time for full depreciation is 5 years. No.Tool& Equipment Capital Expense 1st Floor -Shop for Cakes ingridients Good shelf Refrigerator Table Electroni c Cash Regristor Cost of Installment& Decoration 2nd & 3rd Floor- Place for DIY and Learning Kitchen cupboard Oven Refrigerator Hand-mixer Blender Gas cooker yellowish brown Table Cost of Installment & Decoration 4th Floor -Office Destop & PC Phones Printer Office Table and chairs Cost of Installment& Decoration Working capital for the zero year Uniform for Staff Training course for staff Tools for the kitchen Tools for the office CashINITAL INVESTMENT Quantity Cost per Unit Total Cost 148,500,000 17,800,000 4,800,000 3,500,000 1,000,000 3,500,000 5,000,000 99,900,000 30,000,000 18,000,000 26,000,000 2,800,000 1,100,000 4,000,000 4,000,000 4,000,000 10,000,000 30,800,000 20,000,000 800,000 3,000,000 5,000,000 2,000,000 45,000,000 2,000,000 3,000,000 5,000,000 5,000,000 30,000,000 193,500,000 29,700,000 1 1 1 600,000 3,500,000 1,000,000 3,500,000 5,000,000 15,000,000 3,000,000 13,000,000 700,000 550,000 2,000,000 1,000,000 1,000,000 10,000,000 10,000,000 800,000 3,000,000 1,000,000 2,000,000 200,000 500,000 TOTAL DEPRECITAION 2 6 2 4 2 2 4 4 2 1 1 5 10 6 Interest Payment Year Quarter 1 I II III IV 2 I II III IV 3 I II III IV 4 I II III IV 5 I IIIII IV INTEREST PAYMENTS (VND) Beginning Balance Principal Payment Interest Payment Total Payment Total Payment/Year Ending Balance 80,000,000 4,000,000 2,400,000 6,400,000 24,880,000 76,000,000 76,000,000 4,000,000 2,280,000 6,280,000 72,000,000 72,000,000 4,000,000 2,160,000 6,160,000 68,000,000 68,000,000 4,000,000 2,040,000 6,040,000 64,000,000 64,000,000 4,000,000 1,920,000 5,920,000 22,960,000 60,000,000 60,000,000 4,000,000 1,800,000 5,800,000 56,000,000 56,000,000 4,000,000 1,680,000 5,680,000 52,000,000 52,000,000 4,000,000 1,560,000 5,560,000 48,000,000 48,000,000 4,000,000 1,440,000 5,440,000 21,040,000 44,000,000 44,000,000 4,000,000 1,320,000 5,320,000 40,000,000 40,000,000 4,000,000 1,200,000 5,200,000 36,000,000 36,000,000 4,000,000 1,080,000 5,080,000 32,000,000 32,000,000 4,000,000 960,000 4,960,000 19, 120,000 28,000,000 28,000,000 4,000,000 840,000 4,840,000 24,000,000 24,000,000 4,000,000 720,000 4,720,000 20,000,000 20,000,000 4,000,000 600,000 4,600,000 16,000,000 16,000,000 4,000,000 480,000 4,480,000 17,200,000 12,000,000 12,000,000 4,000,000 360,000 4,360,000 8,000,000 8,000,000 4,000,000 240,000 4,240,000 4,000,000 4,000,000 4,000,000 120,000 4,120,000 Notes Debt of VND80,000,000 from bank, maturity of 5 years, interest rate 12% Interest is paid in from the first month, principal sum payment is incurred once a quarter Wages payment trade title 1 Director 2 Secretary 3 Accountant 4 Sales Assistant 5 Cooking teacher 6 Securities Total Quantity 1 1 1 6 2 2 WAGE PAYMENTS (VND) Year 1 Year 2 72,000,000 75,600,000 42,000,000 44,100,000 48,000,000 50,400,000 144,000,000 151,200,000 96,000,000 100,800,000 48,000,000 50,400,000 450,000,000 472,500,000 Year 3 79,380,000 46,305,000 52,920,000 158,760,000 105,840,000 52,920,000 496,125,000 Year 4 83,349,000 48,620,250 55,566,000 166 ,698,000 111,132,000 55,566,000 520,931,250 Year 5 87,516,450 51,051,263 58,344,300 175,032,900 116,688,600 58,344,300 546,977,813 Notes 1. Wages of Director, Secretary, Accountant, Sales Assistant, Securities are included in Selling and Admin Fixed expense each year 2. Wages of cooking teacher is included as Direct Labor for Learning Services 3. Wages growth rate is 5% each year Variable costWe have three services in this project, in general, to estimate the variable cost, we estimate the variable cost beyond the number of customers we service. Services Included Shopping DIY Learning Bag Tool packgage 1 Tools package 2 Ingridients Using CPs kitchen Using CPs tools instructor Services Included Bag Tool package 1 Tool package 2 Ingridients Using CPs kitchen (gas, water, electricity cost,) Using CPs kitchen s tools teacher Total VARIABLE COST PER CUSTOMER Shopping DIY 500 3,500 Learning 500 3,500 15,000 3,000 10,000 500 3,500 15,000 50,000 3,000 10,000 50,000 132,000 4,000 32,000 Fix ed cost per year for Selling and Admin activities unconquerable COST PER YEAR FOR ADMINSTRATIVE & SELLING ACTIVITIES Detail Per month Per year net bill 250,000 3,000,000 Electricity bill 1,500,000 18,000,000 Water bill 200,000 2,400,000 Phoning bill 200,000 2,400,000 publicise exp 6,000,000 Other exp 1,000,000 12,000,000 43,800,000 Expected number of customers year 1 Shopping DIY Learning Total EXPECTED NUMBER OF CUSTOMER year 2 year 3 year 4 3500 4550 5460 2920 3796 4555 768 998 1198. 1 7,188 9,344 11,213 year 5 5733 4783 1258 11,774 6020 5022 1321 12,363 We use up that because this is a new services which havent existed in the market so it will have a numerous of customers The growth rate will be 30%, 10% and 5% for the year of 2, 3, 4 and 5 on an individual basis , after the services enter the market. Total expenseYear 0 Total Variable costs Shopping DIY Learning Total Fixed costs Wages Depreciation House Renting Fixed cost of selling and admin Intersest payment Total cost TO TAL EXPENSE Year 1 Year 2 Year 3 Year 4 Year 5 208,816,000 271,460,800 325,752,960 342,040,608 14,000,000 18,200,000 21,840,000 22,932,000 93,440,000 121,472,000 145,766,400 153,054,720 101,376,000 131,788,800 158,146,560 166,053,888 512,380,000 354,000,000 29,700,000 60,000,000 43,800,000 24,880,000 721,196,000 528,160,000 371,700,000 29,700,000 60,000,000 43,800,000 22,960,000 799,620,800 544,825,000 390,285,000 29,700,000 60,000,000 43,800,000 21,040,000 870,577,960 562,419,250 409,799,250 29,700,000 60,000,000 43,800,000 19,120,000 904,459,858 359,142,638 24,078,600 160,707,456 174,356,582 580,989,213 430,289,213 29,700,000 60,000,000 43,800,000 17,200,000 940,131,851 Price of each servicesCustomer Year 1 Shopping DIY Learning Year 2 Shopping DIY Learning Year 3 Shopping DIY Learning Year 4 Shopping DIY Learning Year 5 Shopping DIY Learning 3,500 2,920 768 4,550 3,796 998 5,460 4,555 1,198 5,733 4,783 1,258 6,020 5,022 1,321 Variable Cost 14,000,000 93,440,000 101,376,000 18,200 ,000 121,472,000 131,788,800 21,840,000 145,766,400 158,146,560 22,932,000 153,054,720 166,053,888 24,078,600 160,707,456 174,356,582 Fixed cost Toatal cost Cost per customer Average cost in 5 year 512,380,000 51,238,000 65,238,000 18,639 15,138 230,571,000 324,011,000 110,963 92,074 230,571,000 331,947,000 432,223 360,406 528,160,000 52,816,000 71,016,000 15,608 237,672,000 359,144,000 94,611 237,672,000 369,460,800 370,053 544,825,000 54,482,500 76,322,500 13,978 245,171,250 390,937,650 85,822 245,171,250 403,317,810 336,637 562,419,250 56,241,925 79,173,925 13,810 253,088,663 406,143,383 84,915 253,088,663 419,142,551 333,186 580,989,213 58,098,921 82,177,521 13,652 261,445,146 422,152,602 84,059 261,445,146 435,801,728 329,932 Shopping DIY Learning Original Cost plus 1% Final Price Note We calculate the add up cost of a service and base on it to estimate the price 15,289 17,000 For the Shopping services, the price is the average profit we gain from each shop bill 92,995 120,000 Assume that the shop dont have inventory because the goods are directly taken from agent 364,010 400,000 Revenue PlanYear 0 Shopping Customer Profit/bill DIY Customer Price Learning Customer Price Total Growth rate of revenue (%) Year 1 EXPECTED REVENUE Year 2 Year 3 Year 4 Year 5 59,500,000 77,350,000 92,820,000 97,461,000 102,334,050 3,500 4,550 5,460 5,733 6,020 17,000 17,000 17,000 17,000 17,000 350,400,000 455,520,000 546,624,000 573,955,200 602,652,960 2,920 3,796 4,555 4,783 5,022 120,000 120,000 120,000 120,000 120,000 307,200,000 399,360,000 479,232,000 503,193,600 528,353,280 768 998 1,198 1,258 1,321 400,000 400,000 400,000 400,000 400,000 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 30 20 5 5 Because this is a completely new services, so after the first year, the number of customers increase sharply in the 2nd and 3rd year, but in the 4th and 5th year when Cake paradise (C has the competitor, ( who enter the market to trade union this segment), the growth rate of CP increase slightly at 5%. Profit & Loss PlanYear 1 Revenue Variable Cost Contribute Margin Fixed Cost Earning before Tax Tax Earning after tax PROFIT AND LOSS PLAN Year 2 Year 3 Year 4 Year 5 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 208,816,000 271,460,800 325,752,960 342,040,608 359,142,638 508,284,000 660,769,200 792,923,040 832,569,192 874,197,652 512,380,000 528,160,000 544,825,000 562,419,250 580,989,213 (4,096,000) 132,609,200 248,098,040 270,149,942 293,208,439 28% 28% 28% 28% 28% (4,096,000) 95,478,624 178,630,589 194,507,958 211,110,076 We can see that in the first year, because this is a new service and it needs time for the customers to sock and have the habit to use this service, so the earning after tax for the first year is negative. After the first year,the number of customers who know and use Cake Paradise service increase (beyond word of mouth), the earning after tax for the 2nd, 3rd, 4th, 5th increase sharply. Break even f or each yearYear 1 CM CM unit CM Ratio Break even point Break even revenue Safety of margin 508,284,000 70712. 9 0. 7088 7,246 722,878,741 (5,778,741) BREAK EVEN Year 2 Year 3 Year 4 Year 5 660,769,200 792,923,040 832,569,192 874,197,652 70712. 9 70712. 9 70712. 9 70712. 9 0. 7088 0. 7088 0. 7088 0. 7088 7,469 7,705 7,954 8,216 745,141,567 768,652,973 793,475,388 819,674,364 187,088,433 350,023,027 381,134,412 413,665,926 Cash flow We have, cost of capital was calculated by WACC premiss ( ( ) ) Year 0 Revenue Operating Expense EBITDA D&A EBIT (1- Tax) NOPAT CFOP Capital expense Working capital Add W. C vacate Cash flow Payback Period Cost of capital NPV IRR MIRRCASH electric current Year 1 Year 2 Year 3 Year 4 Year 5 717,100,000 932,230,000 1,118,676,000 1,174,609,800 1,233,340,290 691,496,000 769,920,800 840,877,960 874,759,858 910,431,851 25,604,000 162,309,200 277,798,040 299,849,942 322,908,439 29,700,000 29,700,000 29,700,000 29,700,000 29,700,000 (4,096,000) 132,609,200 248 ,098,040 270,149,942 293,208,439 0. 72 0. 72 0. 72 0. 72 0. 72 (4,096,000) 95,478,624 178,630,589 194,507,958 211,110,076 25,604,000 125,178,624 208,330,589 224,207,958 240,810,076 (148,500,000) (45,000,000) (193,500,000) 2. 5 15. 30% 277,726,609 54% 30. 39% (45,000,000) 25,604,000 (58,500,000) (13,500,000) 111,678,624 (70,200,000) (11,700,000) 196,630,589 (73,710,000) (3,510,000) 220,697,958 (77,395,500) (3,685,500) 314,520,076 The Payback Period isConclusion 1. 2. 3. 4. The project completely has the ability of reaching the break-even point from the first year. Payback period is nearly 2. 5 years, a very detach period in the whole process of 5 years. NPV is a confirming numbers and IRR is at 54%, much more higher than the cost of capital. MIRR is at 30. 39%, a high figure. ? Although the initial investment is quite small, all the figures above have proved that this project is profitable and promises to bring high profit. Reference Fundamental of corporate financial Book Vatgia. vn Kitchenart. wordpress. com Nguyenkim. vn spare thank to Ms. Pham Lien Ha to helps us to do this project