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  • Capital Cost Components Number

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    Jon Snow
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    The document provides financial details for the capital costs, operation costs, revenues, and cash flows for a 10 year period of a trucking and warehousing business. The capital costs total Rs. 74 million initially. Revenues are projected to grow at 5% annually while expenses grow at 4%. After deducting taxes from earnings before interest and taxes (EBIT), the business is projected to generate a positive net cash flow each year with a total net present value of Rs. 8.2 million.

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    The document provides financial details for the capital costs, operation costs, revenues, and cash flows for a 10 year period of a trucking and warehousing business. The capital costs total Rs. 74 million initially. Revenues are projected to grow at 5% annually while expenses grow at 4%. After deducting taxes from earnings before interest and taxes (EBIT), the business is projected to generate a positive net cash flow each year with a total net present value of Rs. 8.2 million.

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    © All Rights Reserved
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    15 views6 pages

    Capital Cost Components Number

    Uploaded by

    Jon Snow
    The document provides financial details for the capital costs, operation costs, revenues, and cash flows for a 10 year period of a trucking and warehousing business. The capital costs total Rs. 74 million initially. Revenues are projected to grow at 5% annually while expenses grow at 4%. After deducting taxes from earnings before interest and taxes (EBIT), the business is projected to generate a positive net cash flow each year with a total net present value of Rs. 8.2 million.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 6

    Capital cost components Number

    Number of trucks 20
    Cost per truck ₹3,200,000.00
    total area 200000
    Average cost per unit area 10
    total area cost ₹24,000,000.00
    machines and other facilities ₹10,000,000.00

    Operation cost components Number


    cost of operation & maintenance ₹40,000.00
    total avg cost of operation & maintenance ₹9,600,000.00
    Electricity ₹500,000.00
    Manpower ₹5,400,000.00
    facility maintenance cost

    Revenue Source ₹64,000,000.00


    Monthly fixed charge for trucks ₹90,000.00
    Fixed cash from trucks ₹1,080,000.00
    Total fixed cash from trucks ₹21,600,000.00
    Revenue fromWarehousing ₹28,800,000.00
    Unit
    Nos
    Rs
    sqf
    per sqf per month
    Rs per year
    Rs

    Unit
    Rs per truck per month
    Rs per year
    Rs
    Rs

    Rs per truck per month

    Rs per year
    Rs per year
    Capital cost components Number Unit
    Number of trucks 20 Nos
    Cost per truck ₹3,200,000.00 Rs
    Total cost of trucks ₹64,000,000.00 Rs
    machines and other facilities ₹10,000,000.00 Rs

    Operation cost components Number Unit


    cost of operation & maintenance ₹40,000.00 Rs per truck per month
    total avg cost of operation & maintenance ₹9,600,000.00 Rs per year
    total area 200000 sqf
    Average cost per unit area 10 per sqf per month
    total area cost ₹24,000,000.00 Rs per year
    Electricity ₹500,000.00 Rs per year
    Manpower ₹5,400,000.00 Rs per year
    facility maintenance cost ₹100,000.00 Rs per year

    Revenue Source ₹64,000,000.00


    Monthly fixed charge for trucks ₹100,000.00 Rs per truck per month
    Fixed cash from trucks ₹1,200,000.00
    Total fixed cash from trucks ₹24,000,000.00 Rs per year
    Revenue fromWarehousing ₹38,400,000.00 Rs per year

    Depreciation rate 10%


    Rate of revenue growth 5%
    Expenses growth rate 4%
    tax rate 30%
    Discount rate 15%
    Component Year0 Year1 Year2
    Capital cost ₹74,000,000.00
    Revenues ₹62,400,000.00 ₹65,520,000.00
    Expenses ₹39,600,000.00 ₹41,184,000.00
    Gross Profit ₹22,800,000.00 ₹24,336,000.00
    Depreciation ₹7,400,000.00 ₹6,660,000.00
    EBIT ₹15,400,000.00 ₹17,676,000.00
    tax ₹4,620,000.00 ₹5,302,800.00
    Profit afer tax ₹10,780,000.00 ₹12,373,200.00
    Cashflow from operations -₹74,000,000.00 ₹10,780,000.00 ₹12,373,200.00

    Net present value ₹8,198,831.19


    Year3 Year4 Year5 Year6 Year7

    ₹68,796,000.00 ₹72,235,800.00 ₹75,847,590.00 ₹79,639,969.50 ₹83,621,967.98


    ₹42,831,360.00 ₹44,544,614.40 ₹46,326,398.98 ₹48,179,454.94 ₹50,106,633.13
    ₹25,964,640.00 ₹27,691,185.60 ₹29,521,191.02 ₹31,460,514.56 ₹33,515,334.84
    ₹5,994,000.00 ₹5,394,600.00 ₹4,855,140.00 ₹4,369,626.00 ₹3,932,663.40
    ₹19,970,640.00 ₹22,296,585.60 ₹24,666,051.02 ₹27,090,888.56 ₹29,582,671.44
    ₹5,991,192.00 ₹6,688,975.68 ₹7,399,815.31 ₹8,127,266.57 ₹8,874,801.43
    ₹13,979,448.00 ₹15,607,609.92 ₹17,266,235.72 ₹18,963,622.00 ₹20,707,870.01
    ₹13,979,448.00 ₹15,607,609.92 ₹17,266,235.72 ₹18,963,622.00 ₹20,707,870.01
    Year8 Year9 Year10

    ₹87,803,066.37 ₹92,193,219.69 ₹96,802,880.68


    ₹52,110,898.46 ₹54,195,334.40 ₹56,363,147.77
    ₹35,692,167.92 ₹37,997,885.30 ₹40,439,732.91
    ₹3,539,397.06 ₹3,185,457.35 ₹2,866,911.62
    ₹32,152,770.86 ₹34,812,427.94 ₹37,572,821.29
    ₹9,645,831.26 ₹10,443,728.38 ₹11,271,846.39
    ₹22,506,939.60 ₹24,368,699.56 ₹26,300,974.90
    ₹22,506,939.60 ₹24,368,699.56 ₹26,300,974.90

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