Set up a car showroom

Requirements Estimate Of Business

Number of Units Commission
Models Price
Showroom 15,000 sqf Sold / month (%)
Go Down 30,000 sqf Pradoo 1 3,000,000 4%
Initial Costs Fortunerr 12 2,200,000 4%
Initial Rennovation 2,500,000 Rs. Camryy 1 2,000,000 4%
Deposit for Showroom (6
months rental) 13,500,000 Rs. Corollaa 10 1,200,000 3%
Deposit for Go Down (6
Months Rental) 5,400,000 Rs. Innovaa 50 1,000,000 3%
Rental Costs Etioss 50 700,000 3%
Rent for Showroom 150 Rs./Sqf/Month Total Monthly Sales
Rent for Go Down 30 Rs./Sqf/Month
Staff Profit Calculations
Staff No. Salaries Year - 1 Year - 2
Manager 1 35,000 Rs./Month Revenues 47,892,000 52,681,200
Sales 3 25,000 Rs./Month y/y (%) growth 10%
Admin 2 20,000 Rs./Month Rental - Showroom 27,000,000 27,000,000
Go Down 3 12,000 Rs./Month Rental - Go Down 10,800,000 10,800,000
Increament in Salaries 10% per year Salaries 2,232,000 2,455,200

Operations and
Operations & Maintenance
Maintainance 15% As % of Revenues Expenses 7,183,800 7,902,180
Initial Funding Operating profit 676,200 4,523,820
Debt - For 5 years 50% Interest Expense 1,391,000 1,391,000
Interest Rate -
Commercial Loan 13% per year Profit Before Tax (714,800) 3,132,820
Equity 50% Tax @ 35% - 1,096,487
Net Profit (714,800) 2,036,333
 Cash Flow
Evaluate the proposal to run this business for 5 years by Calculations 1 2
investing 50% in the business Year - 1 Year - 2
Operating Cash Flows/Net Profit (714,800) 2,036,333
Initial Investment (10,700,000)
Initial Funding Amount Debt amount raised / (repaid)
At the end of 5 years deposit amount
Debt Raised 10,700,000 would be returned
Equity Raised 10,700,000 Total Cash Flows (10,700,000) (714,800) 2,036,333
IRR 0 30.23%

Interest Rate %
10% 11%
20%
25%
30%
35%

Debt %
40%
45%
50%
55%
60%
Commission
(Rs.)
120,000
1,056,000
80,000

360,000

1,500,000
875,000
3,991,000

Year - 3 Year - 4 Year - 5

57,949,320 63,744,252 70,118,677
10% 10% 10%
27,000,000 27,000,000 27,000,000
10,800,000 10,800,000 10,800,000
2,700,720 2,970,792 3,267,871

8,692,398 9,561,638 10,517,802

8,756,202 13,411,822 18,533,004
1,391,000 1,391,000 1,391,000

7,365,202 12,020,822 17,142,004

2,577,821 4,207,288 5,999,702
4,787,381 7,813,534 11,142,303
 3 4 5
Year - 3 Year - 4 Year - 5
4,787,381 7,813,534 11,142,303

(10,700,000)
18,900,000

4,787,381 7,813,534 19,342,303

Interest Rate %
12% 13% 14%