FEASIBILITY STUDIES FOR RUGBY

SPORTS FACILITY

|Page1
Introduction:

“Opportunity is often difficult to recognize, we usually expect them to reach us with

beepers and billboards”-William Arthur Ward
What this great writer and poet implied in one of his quotations is that if we want to
succeed in our lives, we have to recognize the opportunity without her crying for us.

Ask any entrepreneur about his wildest dream regarding a market to enter, starting from
the rookie reaching the most experienced will choose a market that got no competitors
and High income customer base that are not satisfied at all.

Our project is a first reaction to one of the most urging opportunities in the history of
the Egyptian market, a four years old unsatisfied demand of many goods and services
to the very same customer base, that is all going to be offered in the very same place,
great TROPHY.

Egyptian Rugby Football Union was founded in 2008, the game is growing in Egypt
and is gaining more and more followers every day, the game is not considered to be a
new game in Egypt, there are 10 teams in Alexandria and 4 under construction and
about the same number in Cairo, the fact that will be discussed more profoundly later
in the Marketing Study.

Trophy is the answer of rugby prayers as it satisfies every need they got in and out the match.

Trophy proudly offers not only the first official rugby in Alexandria and second all over Egypt,
but also a presentation room, a rugby sports gear shop, the service that was not offered yet all
over Egypt.

Trophy proudly states that it offers a full facility that got a full product and service package
with a competitive price and new features that will guarantee us the desired market share.

Trophy proudly stands and tells that it has recognized an opportunity.

|Page2
Ideation Process: (Some might call it Pre-feasibility Studies)

Nature of Business:

Our Project is called Trophy, the business will consist of an official pitch, and a rugby
sports equipment shop.
The project is built on 2 acres (8173 m2) which consists of the following:
1- An Official Rugby pitch surrounded by sand to help in the training course for the
players and benches for the spectators, the pitch is designed up to the specifications of
the world rugby measures.
2- A 400 m2 managerial building where the management stuff will be issued, the
building consists of the following:
i. A Reception Desk taking care of the reservations and contacting the desired
parties.
ii. A Clinique which is a necessity in any pitch.
iii. A presentation room which is very important as the coach needs those to explain
the different plans theoretically before putting theory into action.
iv. Manager’s room.
v. A Cafeteria.
vi. Two locker rooms that contain lockers, benches, bathrooms with showers.
vii. Two general bathrooms one for male and another for female.

3- Sport Shop which is a 100 m2 that got no bathroom.

4- A very small room (30m2) for the security guard to live in.

|Page3
Location Study:

The project will be located in Borg El Arab El Adeema, Montagaa Semeda, the land
is bought will be about 2 acres (8173 m2), the project needs at least this space.

These land features cannot be found within Alexandria and even if, the cost of
purchasing the land will be too high which will get the whole project to be out of the
feasibility borders.

Borg El Arab and El king are the new regions to be invaded by the increasing
population of Alexandria, this is the only solution, you cannot put two gallons of
water into a one gallon bottle, regardless the population fact, Rugby teams go to one
of our competitors which is located in Borg El Arab, general speaking, youth now go
to cafés and cafeterias in Borg El Arab like Sheebo and Aknsh.

All these facts tend to strength the fact that we are located in Borg El Arab, we solved
the problem by buying 2 mini busses to transport the individuals that got no cars.

Religious Study:

Our project got no relevance to the religious side of the Egyptian Market.

Culture Study:

Rugby is not a part of the culture of the Egyptian market, despite the fact that we
know based on the numbers not only our belief, that the game will grow, we do not
want it to be that big; there are hundreds of successful businesses that are specialized
in serving minority games in Egypt like Tennis, Squash, Bing Bong, Hockey and
jockey which is not part of the Egyptian culture and gain the desired market share
which lead to the desired level of profitability.

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‫‪Legal Study:‬‬

‫‪Our reference for the legal aspect of the project were:‬‬

‫‪➢ Mr.Ismail El Ashry.‬‬
‫‪➢ Mr.Farag Adel Farag.‬‬

‫‪The legal study indicates that there are three legal phases to start operating:‬‬

‫‪1. Land details.‬‬

‫قبل اي اجراء يتم التحري عن االرض باخذ رقم الصادر لالرض و هو ‪ 3650‬على د و التاكد من اسم صاحب‬
‫االرض و التاكد انه مالك االرض الحقيقي و معرفة قيمة المبلغ المدفوع من قبله و باقي المبلغ المستحق للجهاز‬
‫الواقع في داءرة صالحياته االرض و هو جهاز مدينة برج العرب و التاكد من عدم وجود اي مشاكل او نزاع علي‬
‫الملكية‬

‫‪2. The purchasing of the land:‬‬

‫اسم صاحب االرض بوضع اليد فرج محمد غريب سيستحق مبلغ ‪ 100‬جنيه علي المتر الواحد بينما يستحق‬
‫الجهاز مبلغ ‪ 120‬جنيه علي المتر الواحد‬
‫يتم االتفاق مع مالك االرض علي الذهاب الي مجلس مدينة برج العرب و التنازل عن الملكية رسميا و عمل‬
‫توكيل بيع لالرض للبيع للنفس اوللغير بعد امضاء عقد بيع‬

‫‪3. The building Permits and Utilities Entrance:‬‬

‫استخراج ترخيص المباني و ادخال الخدمات المختلفة يتكون من عدة موافقات و تصاريح و هي االتية‬

‫الترخيص‬
‫موافقه الكهرباء‬
‫موافقه الصرف الصحي‬
‫موافقه المياه‬
‫موافقه االثار‬
‫اخطار هيئة التليفونات و دفع الرسوم المبدءية‬
‫موافقة الطيران‬
‫موافقة الدفاع المدني‬
‫النمل االبيض‬
‫شهادة التحسينات‬

‫‪4. The permits of activities:‬‬

‫ترخيص نشاط من وزارة الشباب و الرياضة اليجار الملعب‬
‫طلب رخصة محل تجاري وصناعي ‪ /‬معرض بوتيك لمحل االدوات الرياضية‬
‫ترخيص نشاط من وزارتي الصحة والبيئة لفتح الكافتيريا‬
‫ثم يتم الذهاب الي التامينات و مكتب العمل للتامين علي الموظفين و العمال‬

‫‪5. The registration of the business and Labor Aspect:‬‬

‫يتم تسجيل المكان في الجهات االتية‬

‫الغرفة التجارية الستخراج السجل التجاري عن طريق اقامة عقد شركة فى المحكمة‬

‫‪|Page5‬‬
 ‫مامورية ضرايب برج العرب و طلب فتح محضر مناقشة و استخراج ملف ضريبي‬
‫التامينات لتسجيل العمال‬
‫‪6. Weapon permit Aspect:‬‬

‫يتم التقدم بطلب من طالب الترخيص باسم السيد مامور قسم شرطة برج العرب يلتمس به ترخيص له لحمل و‬
‫احراز بندقية لغرض الحراسة مرفقا بها صحيفة الحالة الجناءية و ما يفيد طبيعة عمله كحارس بالجهة محل عمله‬

‫يتم سؤاله في محضر بمعرفة القسم و ترسل االوراق لمديرية االمن قسم الرخص و يتم الكشف عنه جناءيا‬
‫بمعرفة ادارة البحث الجناءي للتحقق من عدم وجود سوابق ا و اتهامات و يتم كذلك الكشف عنه سياسيا بمعرفة‬
‫جهاز االمن الوطني‬

‫تقوم القيادات االمنية بالتحقق من جدية المبررات لمنحه الترخيص ثم يتم العرض علي مدير االمن و يتم صدور‬
‫القرار رسميا ثم يتم اعالم القسم و اعطاءه ترخيص الشراء و يعطى له رخصة حمل السالح‬

‫‪|Page6‬‬
Marketing Study:

Verbal Analysis:

As mentioned earlier, the ultimate dream for any entrepreneur is a market that got no
worthy competitors and a high demanding customer base with high income.

There are several markets for our project as it consists of many services and products,
the only two common factors between them is that they are related to rugby and they
need Trophy.

Out first market is the pitch renting, there is no single rugby pitch in Alexandria, we
target every team in Alexandria, the teams play whether in sand courts or horrible
grass ones, they pay relatively high prices when compared to the benefit acquired, the
net result of this situation is that they are completely unsatisfied, if we offered just a
pitch with medium quality, we will dominate the market but enough is not enough for
Trophy, here comes our competitive advantage over the other courts:
i. High Quality pitch.
ii. Pitch Equipments like Scrum Machines.
iii. Presentation room.
iv. Clinique.
v. Locker Rooms.

Our Second market is a rugby gear shop, this is the first shop of its kind all over
Egypt, this is not related to the pitch renting, we target every rugby player and team in
both Alexandria and Cairo.

Our third market is the cafeteria, this is related to the pitch renting, we target the
players and spectators.

The desired positioning that we want to occupy in the heads of our targeted segment
is the ultimate rugby facility that satisfies every need not want that a rugby player
may think of, this is our marketing strategy for every product or service we provide.

|Page7
Continuity or not?

To survive or not, this is the question, as mentioned in the culture study, we do not
want to get the rugby played by everyone in order to survive, we actually need the
current level of teams in order to be successful, there are hundreds of successful
businesses that are related to minor sports in Egypt like Hockey, Tennis or Jockeying,
the bottom line that we do not have to sit down and think twice about the opening of
the project fearing the continuity of the game, the game has made it to the shore of
survival after long 4 years in Egypt and with a number of teams more than other
games that has been practiced for the last 20 years in Egypt.

SWOT Analysis “Trophy”:

Strengths:
1- First Mover Advantage for the shop all over Egypt and Alexandria for the pitch.
2- Multi Facilities like Parking lot and Clinique.
3- New services like busses
4- Low Price relative to the benefit acquired.
5- We are offering a need not a want.
6- First official rugby pitch.
7- The whole project is considered to be a package.
Weaknesses:
1- Security of the road after the 25 January revolution.
2- Lack of security in Borg El Arab.
3- Small Parking Space.
Opportunities:
1- The absence of competition.
2- The growing of the game in Egypt.
Threats:
1- Rumors about imports preventing which will kill the sports shop.

The many fields we are going through are not by chance, this choice of
Diversification were based on the SWOT analysis of the project which urges us to do
that.

|Page8
Revenues Stream:

➢ Renting the Pitch:

nine out of ten teams got no place to train in other than sand lands or small grass lands
that are on a bad conditions and at the same time, paying relatively high prices when
compared to the benefit acquired.

The next table will mention the following:

• The whole population of Rugby players.
• The product description of the current market.
• Our unworthy competitors and the reason behind referring to their absence will
be clearly defined.
• Our competitive advantage over our competitors.
• Level of Interest of different customers in Trophy.

As mentioned earlier, we are offering a need to the rugby players so there is no high
and low season for renting the pitch, teams train all year.

Team Place of Land Price paid Competitive Edge Level of

Training Nature/Quality Interest
Titans (male) Academy Grass/Good EGP 650 Nothing Low

Matar Sand/bad quality of • Official Pitch with

Eagles IRO the pitch high quality grass. Extremely
( male) EGP 400 • Pitch equipments High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
• Official Pitch with
Borg El Grass/bad because of high quality grass. Extremely
Alex ( male ) Arab the wall near pitch EGP 600 • Pitch equipments High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
• Official Pitch with
Warriors No high quality grass. Extremely
( male ) Usual Place - - • Pitch equipments High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
• Official Pitch with
Malaysia No high quality grass. Extremely
(Male) Usual Place - - • Pitch equipment. High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
Kickers • Official Pitch with
( female) Borg El Grass/bad because of high quality grass. Extremely
Arab the wall near pitch EGP 600 • Pitch equipments High
• Presentation Room.

|Page9
 • Playing at night
because of the
light.
• Clinique.
Eagles Iro Sand/bad quality of • Official Pitch with
( female ) Matar the pitch EGP 400 high quality grass.
• Pitch equipments High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
Alex • Official Pitch with
( female ) Borg El Grass/bad because of high quality grass. Extremely
Arab the wall near pitch EGP 600 • Pitch equipments High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique.
Sand/bad quality of • Official Pitch with
Eagles Matar the pitch EGP 350 high quality grass.
( junior ) • Pitch equipment. High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique..
Alex • Official Pitch with
( junior ) Borg El Grass/bad because of high quality grass. Extremely
Arab the wall near pitch EGP 600 • Pitch equipment. High
• Presentation Room.
• Playing at night
because of the
light.
• Clinique..

o “Titans-males” cannot be targeted as they are currently relatively satisfied.

o The 100% percent customers are “Alex-males, females, junior” beside
“Kickers-females” beside “Warriors-male” and “Malaysia-male” as they train
in Borg El Arab or they do not got a place to train in.
o “Eagles-male, female, junior” were contacted by us in the form of questions
asked face to face which showed that male and junior sections are interested
but the female section parents are afraid because of Security of the roads.

| P a g e 10
 Training Sessions:

Dt = K.X

Where K is the targeted percentage of population and X is the average price;

o The population is the 10 teams of average 35 players each as
mentioned in the earlier table, we will serve 8 teams of average 35
players each.
o For training sessions; We got two shifts; Morning shift that contain
three periods and Night Shift that contain three periods, the
morning shift is EGP 700 and the night shift is EGP 800.

Sunday Monday Tuesday Wednesday Thursday Saturday

11:00-13:00
13:00 -15:00

15:00-17:00 Alex Kickers Eagles Kickers Malaysia Kickers

Male Female Junior Female Male Female
17:00-19:00 Eagles Alex Eagles Alex Eagles Alex
Junior Female Male Female Junior Female
19:00-21:00 Eagles Alex Alex Alex Eagles Alex
male Junior Male Junior Male Junior
21:00-23:00 Malaysia Warriors Malaysia Warriors Alex Warriors
Male Male male Male Male Male
23:00-01:00

The table shows 24 training sessions every week, as mentioned , this is not a regular
renting service, this renting is a must for the survival of the team.
Dt=k.x
12 training session-morning shift x EGP 700 = EGP 8,400
12 training session-night shift x EGP 800 = EGP 9,600

Weekly revenues are EGP 18,000

Yearly revenues are EGP 18,000 x 48 weeks = EGP 864,400

Tournament matches:

| P a g e 11
The tournament matches will be played at two Fridays every month, we will rent the
pitch for two periods at every Friday for EGP 800 a period.
EGP 800 x 2 games in 2 weeks = EGP 3200/4= EGP 800 (weekly revenue)
Yearly revenues are EGP 800 x 48 weeks = EGP 38,400

Dt renting the pitch = EGP 902,400

➢ Sports Shop:
o The sports equipment shop is located in a building of its own.
o This is a first Rugby gear sports shop in Egypt, following our policy, we are
offering the necessary products including shirts, shorts, balls and different gear
that will be mentioned later, we do not offer any product that has a substitute
in the Egyptian market like rugby shoes which is the same as soccer which is
offered by many, the products will be acquired from Rugby World Shop
which offers shipment to Egypt at any port, the cost of the products are the
prices of the inventory beside the customs, the site offers free shipment when
the payment is over EGP 50,000.
o This is completely not related to the renting of the pitch, as mentioned, this is
the first outlet of Rugby gear in whole Egypt so we are targeting every rugby
player all over Egypt.
o The following shipment holds the minimum amount, the next shipment
quantity will be decided after seeing the actual demand, we are offering these
o products to a market of approximately 22 teams of average 35 players each
(770 players who got no other place other than ours).
o We anticipate selling 3 shipments yearly; the sales are not connected to
seasons.

Product Quantity Unit

Description Ordered Price
Rugby Balls 40 EGP 200
Rugby Shorts small 10 EGP 150
Rugby Shorts medium 20 EGP 150
Rugby Shorts large 50 EGP 150
All Blacks Shirt xl 6 EGP 520
All Blacks Shirt s 6 EGP 450
All Blacks Shirt m 6 EGP 450
Jersey Shirt Printing A- 100 EGP 180
LQ
Tackle Vest Intermediate 15 EGP 480
Kicking T 150 EGP 50
Protection Vest 30 EGP 200
Head Guard 20 EGP 415
Jersey Shirt Printing B- 15 EGP 320
HQ
South Africa Jersey 15 EGP 550
Jersey shirt black large 40 EGP 330
Jersey red medium 20 EGP 200
Jersey yellow small 10 EGP 200

| P a g e 12
 Australia Jersey large 2 EGP 750
USA Jersey gear 5 EGP 540
Protection Vest HQ 5 EGP 560
TOTAL 565 units

As mentioned earlier, we anticipate to sell three shipments yearly, the shipment

contains 565 units of an average price of EGP 303.8

Dt = 565 x EGP 342 x 3 = EGP 579,690

Dt Sports Shop = EGP 579,690

➢ Cafeteria:

o A project like this must have a cafeteria, it is more like a kiosk which have a
very narrow menu, it is located in the managerial building.

o Here is a product list for the cafeteria:

Product Unit
Description Price
Club Sandwiches EGP 12
Special turkey and
cheddar
Club Sandwiches EGP 9
Cheese
Bottle of Water-small EGP 1.5
Dasani
Croissant-sold by one EGP 2
Don nuts-sold by one EGP 2.5
Tea EGP 2
Coca Cola Cans EGP 2.50

o The average price is EGP 2.86.

o The location is visited daily (Other than Fridays) by more or less 140 players,
assuming that 50% out of them will buy a small bottle of water which gives us
70 bottles of water daily which gives 1680 sales monthly.
o On Fridays;
✓ We have two tournament Fridays monthly, two matches featuring four
teams of average 140 players, let’s assume that 50% will buy small
bottle of water which gives us 140 sales in the two Fridays
✓ Assuming that each 5 players will get 2 spectators, there will be 112
spectators on the 2 Fridays, assuming:

| P a g e 13
 ▪ 30% will buy small water bottles which are 33 sales monthly.
▪ 10% will buy tea cups which are 11 sales monthly.
▪ 10% will buy club sandwiches which are 11 sales monthly.
▪ 20% will buy Coca Cola cans which are 22 sales monthly.
▪ 5% will buy Don nuts which are 5 sales monthly.
▪ 5% will buy Croissants which are 5 sales.

1907 sales x EGP 2.86 = EGP 5454 monthly revenues

EGP 5454 x 10 months = EGP 54,540

Dt Cafeteria = EGP 54,540

Dt Trophy = Dt renting the pitch + Dt Sports Shop + Dt Cafeteria

Dt Trophy = EGP 1,536,630

| P a g e 14
Four factors can be used together these data

1. Estimation of demand changes caused by population changes

In this case, we are going to focus on the size of population as one of
the factors that can affect the demand and we mean by population here
[the target market] also population might refer to people living in a
certain areas where the project is going to serve.

After we determine the group of population for which the project will
introduce its product, a team is supposed to plan and to implement a
field study in order to collect data about the preference of the
population.

Through the field study, the team could determine the following:
A) X= the average amount that will be bought by a family in a certain
period of time. [How much would you be willing to spend on the
products monthly?].

B) Di= the percentage of sample who declared their wish to buy the
product after they have been told all the necessary information
about the product.

C) K= number of families expected to buy the product in the first year

where
k = Dn.

D) Dti= expected demand for the product for the first year where
Dt = Kx.

E) R= growth rate of population, since demand will grow by a rate

related to the growth rate of population. It doesn’t occur in the first
year.

2. Estimation of demand changes caused by price changes

We are interested here with the relative price as one of the important
factors that affect a demand for the product.

Relative price= absolute price of product / Average price of

substitutes

It’s expected that absolute price would affect demand negatively.

We have to determine the partial price elasticity of demand for a group
of commodities to which the product belongs.

EP= Xp / ∆P
Xp= Ep*∆P

EP: partial price.

Xp: percentage changes in demand caused by change in relative
prices.
∆P: percentage change in relative price.

| P a g e 15
 E=Ø Perfectly in TR increase by some % increase in
P inc, Qd Constant elastic price
E<1 Relatively in TR increase by 8 %
P inc 10%, Qd dec 2% elastic
E=1 Unit elastic TR remain constant
P inc 10%, Qd dec
10%
E>1 Relatively elastic TR decrease 5%
P inc 10%, Qd dec
15%
E=8 Perfectly elastic TR decrease 100%
P inc 10%, Qd dec
100%

▪ The main determinants of elasticity:

1) Degree of necessity.
2) Portion that the products take out of consumer budget.
3) Availability of substitutes.

3. Estimation of demand changes caused by income

Income is considered one of the most important factors that affect
demand, so we would search for demand for a group of commodity to
which the product belongs.
We can determine the expected rate of change in demand resulting
from expected change of income.
Note: Real income is reflected by the amount o goods that can be
bought with your income.

E income = % ∆of demand / %∆ of income

Ey = xy / ∆y
Xy= Ey*∆y

Ey: partial income elasticity of demand.

Xy: expected growth rate of demand caused by change in per capita
income.
∆y: percentage change in income.

In that case, we expect that the income elasticity would be positive as

the demand and income are positively related, especially in the case of
normal goods.
However, in the case of inferior goods, the relation tends to be negative.

4. Estimation of demand changes caused by advertising spending

Advertising is important especially when we introduce a new product
for the market. In order to specify the expected rate of change in
demand caused by change in advertising, we could stick to the partial
elasticity of advertising (Ea) where this elasticity can be measured.
It measures whether or not demand will increase whenever I increase
my advertising spending
Ea = xa / ∆a

| P a g e 16
Ea: partial elasticity of advertising spending.
Xa: expected growth rate of demand caused by advertising spending.
∆a: percentage change in advertising.

Since advertising and its effect on demand decreases over time we

have to multiply the previous formula by an arbitrary called bt, and it
shows the decreasing effect of advertising over years.

Xa= Ea. ∆a. bt

Bt: measures the change or the response in sales caused by advertising

overtime.

Ft= r + xp + xy + xa

R: rate of growth of population.

Xp: percentage changes in demand caused by change in relative prices.
Xy: expected growth rate of demand caused by change in per capita
income.
Xa: expected growth rate of demand caused by advertising spending.

Dt+1 = Dt(1+Ft)
Dt+1 = Demand after one year.

Y Ea. ∆a. bt Xa Ft R + p + xy + xa
1 1.5 × 2 × 1 3% 1 2% + Ø + 6 + 3 % = 11%
2 1.5 × 2 × 0.6 1.8% 2 2% + Ø + 6 + 1.8 = 9.8%
3 1.5 × 2 × 0.4 1.2%
3 2% + Ø + 6 + 1.2 = 9.2%
4 1.5 × 2 × 0.2 0.6% 4 2% +Ø + 6 + 0.6 = 8.6%
5 1.5 × 2 × 0.1 0.3% 5 2% + Ø + 6 + 0.3 = 8.3%

Y Ft Dt+1
0 - EGP 1,536,630 x 7/12 = EGP 896,367.5
1 - EGP 1,536,630
2 11% EGP 1,536,630(1+11%)= EGP 1,705,659
3 9.8% EGP 1,705,659(1+9.8%)= EGP 1,872,813
4 9.2% EGP 1,872,813 (1+9.2%)= EGP 2,045,112
5 8.6% EGP 2,045,112 (1+8.6%)=EGP 2,220,992
6 8.3% EGP 2,220,992 (1+8.3%)= EGP 2,405,334

| P a g e 17
Financial and Technical Study:

1) Cost of Purchasing the land:

The project will be built on 2 acres which are 8173 m2, the cost of the meter is
EGP 220.
Item Cost per Unit Number of Units Total Cost
Land Cost EGP 220 8173 m2 EGP 1,798,060

2) Cost of the contractor:

The company that will be responsible for building everything starting from the
three buildings going through paving the lands and building the sidewalks
reaching to walls and gate building is TECH company which is managed by
Hamada Atta (our link), the company will be responsible for the following:
i. Building Permits.
ii. Soil Examination.
iii. Surveying Engineering.
iv. Architecture Engineering.
v. Structural Engineering.
vi. Supervision at the building phase.
vii. Electricity.
viii. Water Supply.
ix. Plumbing.
x. Contact to the suppliers of the materials needed.
xi. Purchasing of the needed equipments and the installation process.

Tech company will charge 6 % of the total cost of the building phase.
Item Percentage Total cost Total Cost
Tech company charges 6% EGP 2,057,835 EGP 123,750

3) Cost of Permits and Utilities Entrance:

Before the building phase, there permits are to be issued; this is the legal procedures
in order to do the right thing.
In order to get the permit of the buildings, you have to get all the following
documents, these costs will be removed from the legal costs later.
‫التكلفلة‬ ‫الترخيص‬
EGP 4,800 ‫موافقه الكهرباء‬
EGP 25,000 ‫موافقه الصرف الصحي‬
EGP 20,000 ‫موافقه المياه‬
EGP 4,000 ‫موافقه االثار‬
EGP 500 ‫اخطار هيئة التليفونات و دفع الرسوم المبدءية‬
EGP 6,000 ‫موافقة الطيران‬
EGP 20,000 ‫موافقة الدفاع المدني‬
EGP 5,000 ‫النمل االبيض‬
EGP 15,000 ‫شهادة التحسينات‬
EGP 100,300 ‫التكلفة الكلية‬

| P a g e 18
 ‫التكلفة الكلية‬ ‫العدد‬ ‫الخدمة‬
EGP 125,000 - ‫ادخال المياه‬
EGP 250,000 - ‫ادخال الكهرباء‬
EGP 150,000 - ‫خدمة الصرف الصحي‬
EGP 2500 2 ‫ادخال خط التليفون‬
EGP 527,500 ‫المجموع الكلي‬

4) Cost of needed Equipments;

There are some equipments whether in the field of electricity or the field of water
supply which are needed.
‫التكلفة الكلية‬ ‫التكلفلة‬ ‫العدد‬ ‫المعدات‬
EGP 18,000 EGP 3000 6 ‫ حصان هيونداي‬٥ ‫طلمبات غطاسة‬
EGP 200,000 EGP 200,000 1 ‫ كج هيونداي‬٢٥٠ ‫مولد كهرباء‬
EGP 2,500 EGP 250 10 ‫مواتير كهرباء سرفو موتورز‬
EGP 6,000 EGP 500 12 ‫سخانات هاينينج‬
EGP 1,150 EGP 115 10 ‫شفاطات تيانيي‬
EGP 13,200 EGP 2,200 6 ‫لوح كهرباء اوميجا‬
EGP 36,000 EGP 12,000 3 ‫وحدات اطفاء متكاملة تجرو‬
EGP 70,000 EGP 70,000 1 ‫شيلرات (وحدات التكييف المركزي) يورك‬
EGP 4900 EGP 4,900 1 ‫ حصان‬٣ ‫تكييف يورك‬
EGP 351,750 - - ‫المجموع الكلي‬

o These equipments will be bought by Tech Company.

o The Central air conditioner will be placed in the managerial building while the
other air conditioner will be placed in the sports shop.

5) Land Settlement:
At any location, the land is never at the same level at every point so it has to be
settled in order to begin the building phase.
Item Cost per Unit Number of Units Total Cost
Land Settlement EGP 15 8173 m2 EGP 122,595

6) Building Phase:
The building phase consists of the following:
i. Managerial Building.
ii. Sports Shop building.
iii. Location Guard room.
iv. Wall and Gate.
v. Paving the roads and building sidewalks.

i. The costs endured to build and prepare the managerial building:

This building contains the management issues; it is a 400 m2 one floor building
and it consists of:
I. Reception Desk.
II. Presentation Room that contains a projector in order that teams gather in to
discuss the plans and other stuff.
III. Clinique which is a necessity in any sports field.
IV. Manager’s Room which the room for the field manager.

| P a g e 19
 V. Two Identical locker rooms each consisting of the following:
VI. A Cafeteria.
VII. 2 Bathrooms; one for males and one for females.
o Each locker room contains 2 toilets, 3 sinks, 6 showers, benches and lockers.
o Each bathroom contains 3 toilets and 3 sinks.

‫التكلفة الكلية‬ ‫التكلفة‬ ‫الكمية‬ ‫العمل‬

EGP 12,000 EGP 30 400 ‫بالط اسطح راكب بالمتر‬
EGP EGP 1200 200 ‫متر خرسانة مسلحة‬
240,000
EGP 21,000 EGP 350 60 ‫متر خرسانة عادية‬
EGP 35,000 EGP 35 1000 ‫متر محارة بياض داخلي‬
EGP 20000 EGP 50 400 ‫ خرم‬٦ ‫متر مسطح طوب احمر طفلي‬
EGP 750 EGP 15 50 ‫عزل قواعد و سمال ت سروتكت علي البارد‬
EGP 14,000 EGP 35 400 ‫ مللي روالت‬٤ ‫عزل ساخن لالسطح‬
EGP 24,000 EGP 60 400 ‫سيراميك ارضيات بالمتر‬
EGP 6,800 EGP 80 85 ‫سيراميك حوايط بالمتر‬
EGP 37250 EGP 50 745 ‫بوية بالستيك‬
EGP 6,000 EGP 15 400 ‫ظهارة خارجية بالمتر‬
EGP 15,000 EGP 15,000 1 ‫ الحمام مقطوعية‬Male Locker Room
EGP 14000 EGP 14000 1 ‫ الحمام مقطوعية‬Female Locker Room
EGP 8000 EGP 8000 1 ‫ الحمام مقطوعية‬Male General
EGP 7000 EGP 7000 1 ‫الحمام مقطوعية‬Female General
EGP 30000 EGP 30000 - ‫اعمال كهرباء‬
EGP 25000 EGP 25000 - ‫اعمال و ادوات نجارة و شبابيك‬
EGP 10000 EGP 10000 - ‫اعمال صحية‬
EGP 10000 EGP 10000 - ‫تركيب شيلرات و اعمال تكيييف متفرقة‬
EGP 6000 EGP6000 - ‫تركييب وحدات مكافحة الحريق‬
EGP - - ‫المجموع الكلي‬
631,200

The following are the internal costs of the managerial building, we will divide the
total cost depending on its allocation to different parts of the building…
a. Reception:
Item Cost per Unit Number of Units Total Cost
Reception Desk-200 cm EGP 2050 1 EGP 2050
Stationery EGP 50 - EGP 50
Fax and Telephone EGP 875 1 EGP 875
Computer EGP 4000 1 EGP 4000
Computer Chair EGP 325 1 EGP 325
Wireless+Router EGP 855 1 EGP 570
Computer Software - 2 EGP 3000
Reception Furniture EGP 4000 1 EGP 4000
LCD monitor Samsung 32 inches EGP 2249 1 EGP 2249

Receiver Himax EGP 90 1 EGP 90

‫ تركيب‬+ ‫ كابالت‬+ ‫ قطعة‬+ ‫طبق‬ EGP 150 - EGP 150
Receiver Holder EGP 20 1 EGP 20
Clock EGP 80 1 EGP 80
Colder Fresh EGP 899 1 EGP 899
Plastic Cups for Colder - 80 EGP 10
Basket-Easy opening EGP 53.95 3 EGP 161.85
Total Cost - - EGP 18,865.85

| P a g e 20
 o The reception desk and the computer chair will be purchased from El
Senary-Semouha branch.
o The Receiver and its components will be bought from Abd El Aal, El
Ibrahimya branch.
o Stationery, Fax and Telephone, colder, plastic cups, monitor, receiver
holder, clock will be bought from Carrefour.
o Reception furniture will be bought from American Furniture.
o Computer will be bought from the computer market in Semouha, it will be
purchased by us in the form of collection.
o Wireless service and router will be bought from Link.
o Computer Software will be purchased from Engineer Youssef El Essiely.
b. Presentation Room:

Item Cost per Unit Number of Units Total Cost

Projector BenQ EGP 1600 1 EGP 1600
Lecture Chair EGP 115 40 EGP 4600
Cables EGP 30 - EGP 30
Clock EGP 80 1 EGP 80
White Board EGP 75 1 EGP 75
Markers EGP 3 5 EGP 15
Basket-Easy opening EGP 53.95 1 EGP 53.95
TOTAL - - EGP 6453.95

o The projector will be bought from B-Tech, Sidi Gaber branch.

o Lecture chair will be bought from El Senary, Semouha branch.
o White Board, Clock and parkers will be bought from Carrefour.
o Cables will be bought from Abd El Aal, Ibrahimia branch.

c. Manager’s room:

Item Cost per Unit Number of Units Total Cost

Bureau 180 cm + Side EGP 2600 1 EGP 2600
Table
Bureau Chair EGP 550 3 EGP 1650
Stationery EGP 30 - EGP 30
Clock EGP 80 1 EGP 80
Basket-Easy opening EGP 53.95 1 EGP 53.95
Sofa EGP 2000 1 EGP 2000
TOTAL - - EGP 6413.95

o The bureau with the side table, bureau chairs and the bureau will be
bought from El Senary-Semouha branch.
o Stationery and Clock will be bought from Carrefour.

| P a g e 21
 d. Cafeteria:

As mentioned earlier, the cafeteria is a very small one, it is more like a kiosk, it
will be on the form of a bar (250 cm) inside the managerial building.
Item Cost per Unit Number of Units Total Cost
Building the cafeteria EGP 8000 1 EGP 8000
Kettle Elekta EGP 99 1 EGP 99
Refrigerators - 2 Zero
Cash Register EGP 3000 1 EGP 3000

Basket-Original EGP 33.95 1 EGP 33.95

TOTAL - - EGP 11,132.95

o Kettle Elekta will be bought from Carrefour.

o Refrigerators will be obtained for free from Coca Cola.
o Cash Register will be bought through el Waseet.
o The cafeteria will be built by Tech company as well.

The following table holds the product list of the cafeteria;

Product Quantity Unit Cost Total Amount
Description Ordered paid
Club Sandwiches Special 10 EGP 8.5 EGP 185
turkey and cheddar
Club Sandwiches Cheese 10 EGP 7.5 EGP 75
Bottle of Water-small 100 Cartons of 20 EGP 20 EGP 2000
Dasani bottles
Croissant-sold by one 3 Package of 20 EGP 20 EGP 100
Don nuts-sold by one 3 Package of 10 EGP 17 EGP 85
Tea 10 Packages of EGP 2.25 EGP 22.5
Lipton-10 teabags
Plastic cups 300 - EGP 30
Plastic Spoons 300 - EGP 30
Serving papers 2packages of 100 EGP 7 EGP 14
papers
Sugar 5 packages EGP 6 EGP 30
Coca Cola Cans 1 Cartoon of 24 EGP 50 EGP 50
TOTAL EGP 2621.5

o Club sandwiches will be bought from Metro.

o Water and Cans will be bought from Coca Cola.
o Croissants, Don nuts, tea, sugar, serving papers, plastic cups and spoons will
be bought from Carrefour.

e. Clinique:

Item Cost per Unit Number of Units Total Cost

Medical Bed EGP 480 1 EGP 480
Mobile bed EGP 250 1 EGP 250
Heemochlar EGP 7 5 EGP 35
Gauze EGP 1.25 9 EGP 11.25
Plaster EGP 7.75 5 EGP 38.75
Betadine EGP 10.50 5 EGP 52.5
Alcohol Spray EGP 6 5 EGP 30

| P a g e 22
 Spray Antibiotic EGP 18 5 EGP 90
Dressing-10x10 EGP 1.5 10 EGP 15
Dressing-10x20 EGP 2.5 10 EGP 25
Ethyl Chloride EGP 16 5 EGP 80
Bondage 6 cm EGP 4.75 10 EGP 47.5
Bondage 8 cm EGP 5.50 10 EGP 55.5
Bondage 12 cm EGP 8.50 10 EGP 85.5
Basket-Easy opening EGP 53.95 1 EGP 53.95
Clock EGP 80 1 EGP 80
TOTAL - - EGP 1429.95

o Medical equipments will be bought from NSMR, Sporting branch.

o All the rest will be bought from Dr.Omar Pharmacy, Semouha.

f. General Bathrooms:

Item Cost per Unit Number of Units Total Cost

Mirrors EGP 80 per m2 6 EGP 480
Soap-5 bar package EGP 5 12 EGP 60
Harpic* EGP 5.95 3 EGP 17.85
Dettol (2 and 1free)* EGP 76.95 1 EGP 76.95
Glass cleaner* EGP 4.50 5 EGP 22.5
*‫مكنسة اياد طويلة الهالل و النجمة‬+‫جاروف‬ EGP 23.90 2 EGP 47.8
*‫مساحة‬ EGP 12 2 EGP 24
*‫حمام‬
‫فرشاة‬ EGP 8.95 2 EGP 17.90
*‫لتر‬
١٠ ‫جردل‬ EGP 10.95 2 EGP 21.90
Basket-Original EGP 33.95 2 EGP 67.9
TOTAL - - EGP 863.80

o Mirrors will be bought from a small shop in Camp Shezar.

o Every other item will be bought from Carrefour.
o The (*) items were mentioned here as the bathroom is considered to be the
center of the cleanliness in any location.

g. Locker rooms:

Item Cost per Unit Number of Units Total Cost

Benches EGP 2500 4 EGP 10000
(carries 10 persons on
each side-400 cm)
Lockers (25 Small EGP 1800 4 EGP 7200
lockers each)
Soap-5 bar package EGP 5 12 EGP 60
Mirrors EGP 80 per m2 6 EGP 480
TOTAL - - EGP 17740

o Benches and Lockers will be bought from Golden Group company, which is a
company that is specialized in the carpentering works, one of their customers
are Semouha club.

| P a g e 23
 ii. The Costs endured in the building of the Sports Equipments shop and
preparing it:

‫التكلفة الكلية‬ ‫التكلفة‬ ‫الكمية‬ ‫العمل‬

EGP 3000 EGP 30 100 ‫بالط اسطح راكب بالمتر‬
EGP EGP 50 ‫متر خرسانة مسلحة‬
60000 1200
EGP EGP 350 40 ‫متر خرسانة عادية‬
14000
EGP EGP 35 400 ‫متر محارة بياض داخلي‬
14000
EGP 5000 EGP 50 100 ‫ خرم‬٦ ‫متر مسطح طوب احمر طفلي‬
EGP 375 EGP 15 25 ‫عزل قواعد و سمال ت سروتكت علي البارد‬
EGP 3500 EGP 35 100 ‫ مللي روالت‬٤ ‫عزل ساخن لالسطح‬
EGP 6000 EGP 60 100 ‫سيراميك ارضيات‬
EGP EGP 50 200 ‫بوية بالستيك‬
10000
EGP 1500 EGP 15 100 ‫ظهارة خارجية بالمتر‬
EGP EGP - ‫اعمال كهرباء‬
10000 10000
EGP 2000 EGP - ‫اعمال و ادوات نجارة و شبابيك‬
2000
EGP 4000 EGP - ‫تركييب وحدات مكافحة الحريق‬
4000
EGP 600 EGP 600 ‫اعمال تكيييف متفرقة‬
EGP - - ‫المجموع الكلي‬
133,975

Item Cost per Unit Number of Units Total Cost

Shelves meter EGP 20 18 EGP 360
Cost of Installation - - EGP 100
Solid Models EGP 150 4 EGP 600
Computer and Software EGP 5000 1 EGP 5000
Table for computer EGP 800 1 EGP 800
with a draw in it
TOTAL - - EGP 6860

o Shelves will be made at a carpenter in Camp Shezar.

o Solid models reach EGP 1500 if it is original; there are the Chinese version
with EGP 150.

The inventory will be bought from Rugby world shop which is a site online
(WWW.RugbyWorldshop.com), it sells rugby gear and it offers free delivery to
any port.
The cost of the whole thing will include also the cost of customs.
The following table holds the product list of the shop, there are 10 balls and 50
Kicking T that will be used for the pitch.

| P a g e 24
 Product Quantity Unit Cost Total Amount
Description Ordered
Rugby Balls 50 EGP 90.465 EGP 4532.25
Rugby Shorts small 10 EGP 90.465 EGP 904.65
Rugby Shorts medium 20 EGP 84.434 EGP 1688.68
Rugby Shorts large 50 EGP 90.465 EGP 4532.25
All Blacks Shirt xl 6 EGP 295.519 EGP 1773.114
All Blacks Shirt s 6 EGP 295.519 EGP 1773.114
All Blacks Shirt m 6 EGP 295.519 EGP 1773.114
Jersey Shirt Printing A-LQ 100 EGP 60.31 EGP 1688.68
Tackle Vest Intermediate 15 EGP 392.015 EGP 5880.225
Kicking T 200 EGP 12.062 EGP 2412.4
Protection Vest 30 EGP 90.465 EGP 2713.95
Head Guard 20 EGP 301.55 EGP 6031
Jersey Shirt Printing B-HQ 15 EGP 226.162 EGP 3392.437
South Africa Jersey 15 EGP 416.139 EGP 6242.085
Jersey shirt black large 40 EGP 223.147 EGP 8925.88
Jersey red medium 20 EGP 108.588 EGP 2171.16
Jersey yellow small 10 EGP 60.31 EGP 603.1
Australia Jersey large 2 EGP 672.224 EGP 1254.448
USA Jersey gear 5 EGP 301.55 EGP 1507.75
Protection Vest HQ 5 EGP 361.86 EGP 1809.3
TOTAL - - EGP 84,087

The customs comes in 2 ways with each other:

(i) 30% percent of the whole sale.
(ii) EGP 72 per kilo.

The following table holds the cost of customs;

Item Cost per Unit Number of Units Total Cost
First kind of Customs EGP 72 per kilogram 15 EGP 1080
Second kind of 30% - EGP 25,226.1
Customs
Custom broker charge - - EGP 10000
(including delivery to
site)
TOTAL - - EGP 36306.1

o The customs were determined by Mr. Momtaz who is a free custom broker.

| P a g e 25
 iii. The cost of building the Location Guard Room and preparing it:

The location must be guarded by at least one individual who will

spend most of the week at the location.
Item Cost per Unit Number of Units Total Cost
Building 30m2 room EGP 15000 - EGP 15000
(6m x 5m)
Cooker Ideal-One flame EGP 75 1 EGP 75
Wall fan Toshiba EGP 75 1 EGP 75
One bed EGP 725 1 EGP 725
‫مقطوعية حمام وتركيب‬ EGP 2500 1 EGP 2500
TOTAL - - EGP 18375

o The building will be done by Tech Company.

o Cooker, Wall fan and bed will be bought from Carrefour.

iv. Wall and Gate building:

Item Cost per Unit Number of Units Total Cost

Wall building EGP 150 per meter 366 EGP 54900
‫سلك‬ (83 meters x 2 + 100
meters x 2)
Concrete bases for the - - Zero
wall
Gate Building EGP 25000 1 EGP 25000
Banner meter EGP 500 18 EGP 9000
(6m x 320 cm)
TOTAL - - EGP 88900

o Gate and wall building will be done by Tech company.

o Banner will be designed and done by El Haitham company.

v. Paving the roads and building sidewalks:

Item Cost per Unit Number of Units Total Cost

Road Paving EGP 105 per meter 389 EGP 41790
Sidewalks building EGP 30 per meter 175 EGP 5250
TOTAL EGP 47040

o Paving the roads and Sidewalks building will be done by Tech

Company.

7) Pitch Transformation Cost:

Item Cost per Unit Number of Units Total Cost
‫تخضير االرض بعشب بسبولم‬ EGP 8 per meter 7000 EGP 56000
Sand around the court - - Zero
Posts EGP 800 2 EGP 1600
Scrum Machine EGP 6000 2 EGP 12000
Tackle Bags EGP 60 6 EGP 360
Cones EGP 7.5 10 EGP 75
Kicking T - - Zero

| P a g e 26
 Rugby Balls - - Zero
Benches for Spectators EGP 9000 3 EGP 27000
( carries 30 spectators)
Benches for teams EGP 2000 2 EGP 4000
(Bench 400 cm carries
10)
Lawn Mower Black & EGP 996 2 EGP 1992
Decker-GR3000
‫جير للتخطيط – شوال‬ EGP 100 1 EGP 100
Net and installation cost EGP 1000 1 EGP 1000
TOTAL - - EGP 104127

o The planting of the land will done by Zehoor El Gheity which is

located in Vectoria, the business is known for its experience in this
field, one of its former customers is Sporting club.
o Sand Around the court will be obtained from the building phase, it will
cost us nothing, this is as asset as the teams need sand in order to run in
it as it is considered to be one of the necessary exercises.
o Posts and Scrum machines will be made custom at a blacksmith at
karmooz, he will take the designs of the scrum machines and copy it,
and the cost includes the delivery to the site.
o Tackle Bags will be made by a Upholstered in Cleopatra.
o Both benches will be made by Golden Group company.
o Cones will be purchased from Jockey Sport, Bolkly branch.
o Rugby balls and Kicking T were purchased within the shipment.
o Lawn Mower will be bought through Zehoor El Gheity

8) Lighting Costs:
Item Cost per Unit Number of Units Total Cost
Light Pole EGP 2000 10 EGP 20000
Metal Halide 1000 EGP 375 40 EGP 15000
watt
Metal works and EGP 600 2 EGP 1200
cables
TOTAL - - EGP 36200

9) Legal Costs:
Item Cost per Unit Number of Units Total Cost
Building Permits - - Pre-included
Activity Permits - - EGP 12,000
‫تكلفة التسجيل في الجهات المختلفة‬ - - EGP 2,000
‫تكلفة تسجيل العمال‬ - - EGP 4,000
TOTAL EGP 18,000

10) Mini Busses Cost:

Item Cost per Unit Number of Units Total Cost
Jin Bey-14 passengers EGP 93,000 2 EGP 186,000
‫شامل رخصة رحالت و ليست ايجار‬

| P a g e 27
 11) Weapon Cost:
Item Cost per Unit Number of Units Total Cost
Weapon Permits EGP 1000 1 EGP 1000
Shotgun-Double- EGP 32000 1 EGP 32000
Benelli
TOTAL - - EGP 33000

12) Labor Cost:

Employee/Worker Salary/Wage Insurance on the boss Insurance on the employee Salary/Wage
Before insurance 28% 12% After insurance
Site Manager EGP 3000 EGP 840 EGP 360 EGP 2640
Receptionist EGP 800 EGP 224 EGP 96 EGP 704
Cleaner EGP 500 EGP 140 EGP 60 EGP 440
Location Guard EGP 600 EGP 168 EGP 72 EGP 528
Accountant EGP 1200 EGP 336 EGP 144 EGP 1056
Gardener EGP 500 EGP 140 EGP 60 EGP 440
Sports Shop EGP 800 EGP 224 EGP 96 EGP 704
Salesman
Doctor EGP 1200 EGP 336 EGP 144 EGP 1056
Cafeteria man EGP 600 EGP 168 EGP 72 EGP 528
Driver EGP 800 EGP 224 EGP 96 EGP 704

Salary per employee Number of Total Cost of Total cost of

employees salaries insurances
Site Manager 1 EGP 2640 EGP 360
Receptionist 1 EGP 704 EGP 96
Cleaner 6 EGP 2640 EGP 360
Location Guard 2 EGP 1024 EGP 144
Accountant 2 EGP 2112 EGP 288
Gardener 4 EGP 2816 EGP 240
Sports sales man 1 EGP 704 EGP 96
Doctor 1 EGP 1056 EGP 144
Cafeteria man 1 EGP 528 EGP 72
Driver 2 EGP 1408 EGP 192
TOTAL - EGP 15632 EGP 1992

INITIAL COST= EGP 4,389,689

| P a g e 28
13) Operational Cost:
Item Total Cost
Pitch Maintenance EGP 400
Stationery EGP 300
Detergents EGP 200
Cost of purchasing the rugby gear EGP 30097
Utilities EGP 3000
(Electricity, Water)
Salaries and Insurances EGP 16024
Cost of Purchasing the cafeteria EGP 2621.5
Cost of the Clinique EGP 1429.95
Lamps EGP 900
Electrical maintenance EGP 200
TOTAL EGP 55,173

14) Feasibility Cost:

Feasibility studies cost is 5% out of the whole cost.
Item Cost percentage Total cost of the Cost
project
Feasibility Studies 5% EGP 4,389,689 EGP 219,485
Cost

YEAR CASH CASH OUT P/L TAX P/L

IN BEFORE LIABILITY AFTER
TAX TAX
0 896,367.5 (4,994,174) (4,097,806) - (4,097,806)
1 1,536,630 (662,076) 874,554 20% 699,643.2
2 1,705,659 (662,076) 1,043,583 20% 834,866
3 1,872,813 (662,076) 1,210,737 20% 968,589
4 2,045,112 (662,076) 1,383,036 20% 1,106,428
5 2,220,992 (662,076) 1,558,916 20% 1,247,132.8
6 2,405,334 (662,076) 1,743,258 20% 1,394,606

| P a g e 29
 Economical Study:

1) Investment Profitability Analysis:

A) Simple Rate of Return:

Cash out of year zero = EGP 4,994,174
YEAR P/L AFTER TAX SRR SRR %
0 (4,097,806) -4,097,806/4994174 -82%
1 699,643.2 699,643/4994174 14%
2 834,866 834,866/4994174 16.7%
3 968,589 968,589/4994174 19.3%
4 1,106,428 1,106,428/4994174 22%
5 1,247,132.8 1,247,132.8/4994174 24.9%
6 1,394,606 1,394,606/4994174 27.9%

B) Payback Period:
YEAR P/L AFTER TAX Acc. Profit
0 (4,097,806) (4,097,806)
1 699,643.2 (3,398,163)
2 834,866 (2,563,297)
3 968,589 (1,594,708)
4 1,106,428 (488,280)
5 1,247,132.8 758,852
6 1,394,606 2,153,458

Year 5 = EGP 1,247,132.8/365 = EGP 3416.8 daily

(488,280)/3416.8 = 143 days

Payback Period is 5 years, 4 months and 23 days

2) Financial Analysis:

A. Net Present Value:

The Net Present Value is EGP 248,377.92

NPV is Positive so the project is feasible.

B. Internal Rate of Return:

The Internal Rate of Return is 12% which is higher than the interest offered in the
market by banks.

| P a g e 30
 ➢ After conducting the feasibility studies regarding every aspect of the project,
the next results were found:

1. The market needs and wants a business-like Trophy, it will rule the
growing market of Rugby in Egypt, this niche market which is
considered to be a chance.
2. The SRR reaches 28% at year 6, regarding this factor, the project is
very good.
3. Payback Period is 5 years and 5 months, after this period, the mine
of Trophies is wide open.
4. The NPV is positive, the project is feasible and can be conducted.
5. The IRR is 12% which is higher to be better than investing the cash
in the banks.
6. On a financial scale, Trophy is a conservative portfolio; it holds
lowest rate of risk and a relatively high level of profitability.

Based on all these factors, Our team highly recommends Trophy to be conducted in
the Egyptian market.

| P a g e 31