Set up a car showroom

Requirements Estimate Of Business

Models
Showroom 10,000 sqf
Go Down 30,000 sqf Pradoo
Initial Costs Fortunerr
Initial Rennovation 5,000,000 Rs. Camryy
Deposit for Showroom (6
months rental) 6,000,000 Rs. Corollaa
Deposit for Go Down (6
Months Rental) 7,200,000 Rs. Innovaa
Rental Costs Etioss
Rent for Showroom 100 Rs./Sqf/Month Total Monthly Sales
Rent for Go Down 40 Rs./Sqf/Month
Staff Profit Calculations
Staff No. Salaries
Manager 1 80,000 Rs./Month Revenues
Sales 3 30,000 Rs./Month y/y (%) growth
Admin 2 20,000 Rs./Month Rental - Showroom
Go Down 3 20,000 Rs./Month Rental - Go Down
Increament in Salaries 10% per year Salaries
Operations and
Operations & Maintenance
Maintainance 15% As % of Revenues Expenses
Initial Funding Operating profit
Debt - For 5 years 50% Interest Expense
Interest Rate -
Commercial Loan 13% per year Profit Before Tax
Equity 50% Tax @ 35%
Net Profit

Cash Flow Calculations

Evaluate the proposal to run this business for 5 years by investing
50% in the business
Operating Cash Flows/Net Profit
Initial Investment
Initial Funding Amount Debt amount raised / (repaid)
At the end of 5 years deposit amount would
Debt Raised be returned
Equity Raised Total Cash Flows
 IRR

Debt %
usiness
Number of Units Commission Commission
Price
Sold / month (%) (Rs.)
1 9,000,000 4% 360,000
5 3,500,000 4% 700,000
3 4,000,000 4% 480,000

10 2,000,000 3% 600,000

30 2,000,000 3% 1,800,000
50 700,000 3% 875,000

Year - 1 Year - 2 Year - 3 Year - 4 Year - 5

57,780,000 63,558,000 69,913,800
10% 10% 10% 10%
12,000,000
14,000,000
3,240,000

8,667,000
19,473,000
1,183,000

18,290,000
6,401,500
11,888,500

1 2 3 4 5
Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
sh Flows/Net Profit

t raised / (repaid)
5 years deposit amount would
 Interest Rate %
10% 11% 12% 13% 14%
20%
25%
30%
35%
40%
45%
50%
55%
60%