Chapter III

CHAPTER III: ECONOMIC FINANCIAL EFFECTIVENESS

I. Execution plan:
To response required and database exchange, company TC the progress of the job as follows:
Established factory in the Hi-tech park
- Total investment for the factory is about 15 million U.S. dollars
- Operations plan
The Board of Directors will be manage the business strategy, personnel organization.
Workshop manager will allocate labor suit production requirements
II. Capital factory:
Total capital needs and capital resources:
- Total capital needs are:15,000,000 USD
- Structure of Capital Utilization:
+ Capital of the company: 4,500,000 USD
+ Long-term Capital borrowed: 10,500,000 USD
- Mc ch vay
Company long-term borrowing capital to supplement working capital and infrastructure investment
Repayment plan and interest
Sources of annual repayment of borrowed capital is deducted from the profits of the factory
Borrowed capital are expected loan in 5 year time with interest rates expected 5.5%/year and disbursed in
period from 0 to 5 year
Method borrowing capital: Monthly repayment of principal and interest on outstanding debt as the first
period.
- Sources capital: Cap owner 30%, 70% of loans The company will be borrow medium term (minimum 5
years). Currently, the average lending rate of commercial banks of about 5% / year (applicable dollar).

III. Economic efficiency and financial
These assumptions as the basis:
Time of project borrow capital: 5 years
- Interest: Medium-term investment loan: 5% / year
. Interest paid monthly.- ng tin phn tch : la M

RESULTS OF TOTAL INVESTMENT
Factories, offices 6,500,000 USD
Infrastructure, technology transfer 2,000,000 USD
Machines and equipment 3,500,000 USD
Mobile 3,000,000 USD
Total 15,000,000 USD

BORROWING TIME IN 05 YEARS
Unit: USD
Description of
category Amount %
Total investment 15.000.000 100%
Loans 10.500.000 70%
Cap owner 4.500.000 30%

Lending rate
(in %)
Borrowed time Total Interest
Total amount
paid (including
interest)
Average
interest each
year
5,0%

5 year

1.334.375 11.834.375 266.875

Total loans 10.500.000
Borrowed time
(months) 60
The principal paid
monthly 175.000
The principal
paid annually 2.100.000
Average
annual
principal and
interest 2.366.875
Lending Rate 5%

SALARY COSTS THROUGH THE YEARS
Unit : USD
DEPARTMENT
Year 1 to Year 2 From year 3 onwards
number
of
people
monthly
salary
Years
salary
number
of
people
monthly
salary
Years
salary
1. The Board of Directors

Director 1 1.200 14.400 1 1.500 18.000
Vice Director 1 1.000 12.000 1 1.200 14.400
2. Department Accounting -
Chief Accountant 1 700 8.400 1 850 10.200
Staff Accountant 2 350 8.400 3 450 16.200
Treasurer 1 280 3.360 1 340 4.080
3. Administrative Office
-

Generalinchief 1 500 6.000 1 560 6.720
Administrative staff 2 280 6.720 2 340 8.160
Drivers 1 230 2.760 1 280 3.360
Security 3 190 6.840 3 230 8.280
Caretaker 2 140 3.360 2 170 4.080
4. Department of Business -
Generalinchief 1 600 7.200 1 670 8.040
Sales staff 3 300 10.800 4 340 16.320
5.Department Technical
Warranty

-

Generalinchief 1 570
6.840
1 670
8.040
Staff 3 330
11.880
4 400
19.200
6. Department purchase and
import and export

-

Generalinchief 1 570
6.840
1 670
8.040
Staff 4 330
15.840
5 400
24.000
7. Department R & D
-

Generalinchief 1 900
10.800
1 1.100
13.200
Staff 2 600
14.400
2 700
16.800
Total indirect labor 31 9.070 156.840 35 10.870 207.120
II. Direct labor



1. Workshop manager 1 700
8.400
2 950
22.800
2. Engineer materials 1 470
5.640
2 550
13.200
3. Mechanical and electrical
engineer
1 470
5.640
2 550
13.200
4. Storekeeper meterials 1 230
2.760
1 280
3.360
5. Storekeeper finished product 1 230
2.760
1 280
3.360
6. Statistics 1 190
2.280
1 230
2.760
7. Head 3 230
8.280
6 280
20.160
8. Factory workers 30 190
68.400
150 230
414.000
9.Organization & unloading of
goods
3 170
6.120
10 200
24.000
10. Drivers 2 190
4.560
3 220
7.920
Total direct labor 44 3.070 114.840 178 3.770 524.760
Social and health insurance 21% 2.549 57.053 3.074 153.695
Total 75 14.689 328.733 213 17.714 885.575

Depreciation expense each year
Unit : USD