Professional Documents
Culture Documents
(INVESTMENT
APPRAISAL)
Business Idea 1
Initial Investment
An estimation of Initial investment required containing detail of one-off costs plus some
working capital requirement e.g.
ONE-OFF COSTS
Sr. ITEM Rate Qty Total
1. Advance Rent of office Rs. 50,000
2. STATIONERY AND OTHERS Rs. 40,000
4. COMPUTER Rs. 20,000 1 Rs. 20,000
TOTAL Rs. 110,000
WORKING CAPITAL
xx months’ operating expenses = Rs. 40,000 (w-2)
Potential Expenses:-
FUEL
SALE EXPENSES
COMISSION
Year 1
(Cost per unit * No. of units sold)
Direct Costs = 40 × 1200 (w-1) = Rs.48,000
Other Expenses:-
1. Rent 15,000 × 12 = 180,000
2. Bills 8,000 × 12 = 96,000
3. Salaries 16,000 × 12 = 192,000
Total Rs.468,000
Grand Total = 48,000 + 468,000 = Rs. 516,000
Year 2
WORKING CAPITAL
xx months’ operating expenses = Rs. 30,000 (w-2)
Potential Expenses:-
FREIGHT
WAGES
ENTERTAINMENT
ADDITIONAL WAGES
Schedule of Operating Inflows:- (W-1)
Year 1
(S.P * units sold per day * No. of days worked)
Month 1 100 × 13 × 25 = Rs. 32,500
Month 2 100 × 13 × 25 = Rs. 32,500
Month 3 100 × 13 × 25 = Rs. 32,500
Month 4 100 × 13 × 25 = Rs. 32,500
Month 5 100 × 13 × 25 = Rs. 32,500
Month 6 100 × 13 × 25 = Rs. 32,500
Month 7 100 × 13 × 25 = Rs. 32,500
Month 8 100 × 13 × 25 = Rs. 32,500
Month 9 100 × 13 × 25 = Rs. 32,500
Month 10 100 × 13 × 25 = Rs. 32,500
Month 11 100 × 13× 25 = Rs. 32,500
Month 12 100 × 13 × 25 = Rs. 32,500
Total = 390,000
Year 2
(S.P * units sold per day * No. of days worked)
Month 1 105 × 15 × 25 = Rs. 39,375
Month 2 105 × 15 × 25 = Rs. 39,375
Month 3 105 × 15 × 25 = Rs. 39,375
Month 4 105 × 15 × 25 = Rs. 39,375
Month 5 105 × 15 × 25 = Rs. 39,375
Month 6 105 × 15 × 25 = Rs. 39,375
Month 7 105 × 15 × 25 = Rs. 39,375
Month 8 105 × 15 × 25 = Rs. 39,375
Month 9 105 × 15 × 25 = Rs. 39,375
Month 10 105 × 15 × 25 = Rs.39,375
Month 11 105 × 15 × 25 = Rs. 39,375
Month 12 105 × 15 × 25 = Rs. 39,375
Total = 472,500
Year 3
(10% growth over the year)
Total = 519,750
Year 4
(10% growth over the year)
Total = 571,725
Year 5
(10% growth over the year)
Total =628,898
Note: - Following estimations are based on;
3. survey including 5 interviews details of which are attached in annexure
4. Industrial growth in the sector
Schedule of Operating outflows:- (W-2)
Year 1
(Cost per unit * No. of units sold)
Direct Costs = 45 × 1000 (w-1) = Rs.50,000
Other Expenses:-
4. Rent 5,000 × 12 = 60,000
5. Bills 5,000 × 12 = 60,000
6. Salaries 16,000 × 12 = 192,000
Total Rs. 312,000
IRR Xx xx
Note:-
Conclusion:-
Not less than 800 words briefly explaining the tools used and which of the
TWO business idea you find better for starting a new business
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