TABLE OF CONTENTS

TITLE PAGE

1. EXECUTIVES SUMMARY OF PROJECT...................................................................................................3

2. INTRODUCTION...........................................................................................................................................4
2.1. Background Information..........................................................................................................................4
2.1Name of the Project:-Gulela Building............................................................................................................4
2.2. Project Goals and Objectives...................................................................................................................5
3. KEY SUCCESS AND RISK FACTORS........................................................................................................3
3.1. Macro Success factors.............................................................................................................................3
Key Success Factors............................................................................................................................................3
3.2. Sector Success Factors.............................................................................................................................4
3.3. SWOT (In Matrix) Analysis of the Project..............................................................................................5
4. MARKET STUDY AND PRODUCTION PROGRAM..................................................................................6
4.1. Market Study...........................................................................................................................................6
4.1.1. Present Demand and Supply............................................................................................................6
4.1.2. Projected Demand............................................................................................................................6
4.1.3. Pricing and Distribution...........................................................................................................................6
4.2. Customers................................................................................................................................................7
4.2.1. Price Sensitivity...............................................................................................................................7
4.2.2. Customer Power..............................................................................................................................7
4.2.3. Suppliers..........................................................................................................................................8
4.2.4. Marketing Strategy..........................................................................................................................8
4.2.5. Target Market...............................................................................................................................8
4.2.6. Competition.....................................................................................................................................8
4.3. Production Program.................................................................................................................................8
4.3.1. Raw Materials and Utilities.............................................................................................................9
4.3.2. Availability and Source of Raw materials........................................................................................9
4.3.3. Electricity & Water (Utility) and Furniture Cost Determination......................................................9
4.4. Production and service Process................................................................................................................9
4.4.1. Furniture and Equipment...............................................................................................................10

1
5. HUMAN RESOURCE AND TRAINING REQUIREMENT........................................................................10
5.1. Human Resource....................................................................................................................................10
5.2. Training Requirement............................................................................................................................11
6. BALANCE SHEET PROJECTION& FINANCIAL ANALYSIS.................................................................12
6.1. Financial Plan........................................................................................................................................12
6.2. Source of Fund......................................................................................................................................12
6.3. Expected Financial Results....................................................................................................................12
6.4. Profit/Loss Forecast...............................................................................................................................14
6.5. Cash Flow Forecast...............................................................................................................................14
6.6. The Payback Period of the Loan............................................................................................................14
7. SOCIO ECONOMIC BENEFIT....................................................................................................................23
8. CONCLUSIONS & RECOMMENDATIONS..............................................................................................24
8.1. Conclusion.............................................................................................................................................24
8.2. Recommendations.................................................................................................................................24

2
 1. EXECUTIVES SUMMARY OF PROJECT

The project envisages the establishment with 17 self contend bed rooms, and three huge rooms which
are currently rented to banks, sport service and for church at GulaleBuilding in OromiaRegion. And
seventeen (17) other expanded bed room for the next time after getting the loan from CBO.

The financial study shows that the total investment cost is birr28,000,000.00 from the total investment
capital 80% birr 22,400,000.00 is to be financed by CBO and 20% birr 5,600,000.00 is to be financed
by the MrSolomon Abebe for the purchase of the building which take as cost of the project.

With this investment the financial analysis result of the service indicates that, it will generate net profit
of Birr 56,614.93 during its first year of operation and Birr 3,518,498.80during its fifteen years
operation. Also, the cash flow projection shows a positive growth in cash balance from Birr18,620.15
of the first year to Birr 4,554,328.09 at the fifteen year. This implies that the project will not face
liquidity constraint to finance its operational cost and serve its debt obligation.

Organizational structure of the project is designed to fit the general business operation and the
particular nature of the rental and restaurant service firm. Accordingly, the project is expected to create
employment opportunity for about more than 12at the initial startup. The available labor for the vacant
position is the critical part of the analysis of organization and management of a certain project. In this
regard, the project is not expected to face trouble considering the universities and vocational schools
and their production of technical people year after year.

The project also has great contribution for socio economic development of the country by generating
additional income for the owner, creating permanent and temporary employment opportunity for
professional, semi-skilled and unskilled workers directly as well as indirectly. In addition, the project
plays crucial role in contribution of government income through profit tax. Moreover, the project has
no significant negative impact on the environment.

3
2. INTRODUCTION

2.1. Background Information

The background section may cover issues such as:

1. Name of the Client:-Ato Solomon Abebe

Address: - Region: Oromia Sub-City/Zone:
3 Town; - Adama Town
Woreda: - ____________
Kebele:10 House No: ------------------
Tel. No. _______ Office Res. _______________
Mobile: _____________
Fax ______________ P.O. Box: ______
E-Mail: Web site ____ _______

2. The Project:-

2.1Name of the Project:-Gulela Building

2.2. Type of Project፡-Rental Service

2.3. Address:-

Region:-Oromia: - Sub-City/Zone; East Shewa

Town:-AdamaTown Woreda: __________
Kebele :-10- House No: - ___-__
Tel. No.Office Res. _____________
Mobile:-__________________
Fax ______-________ P.O. Box __________
E-Mail;-_________ Web site _________
3. Form of Organization:- Private Company

4
 2.2. Project Goals and Objectives

Gulale Building rental service project has identified several goal and objectives for the business.

 Reach the point of sustainable profitability.

 Enjoy work while making a good life.
 To create jobs and entrepreneurship.
 To better the lives of members and their families and those of the community at large through
generation of income for household management.
 Empower the local community through participations in the firm and hearing them as experts
and labor employees.
 Have mutual relationships with entire community and others companies in order to own good
will and make reasonable profit.
 To combat poverty and hunger.

Mission 

Gulale Building rental service project mission is to become the leading provider the service with
quality products to and attracts the customer. The business philosophy of  the  company  is   to  offer
clients  something  quick and  tasty  to   hydrate  them before  and  after  workouts  all
while supporting   their   communities with  a   donation  to  a  worthy   cause.   

Vision

Gulale Building rental service project visions are to producing quality of products being competent

and well reputed Company in the local people.

5
3. KEY SUCCESS AND RISK FACTORS

Risks

The following factors that could prove to be detrimental to their running of the different fixed asset
investment like construction of building and use for rental purpose as well as food product if they are
not addressed successfully as well as the physical attributes of the food making project that do not
appeal to the target market that need to be taken into account are as follows:

3.1. Macro Success factors

These are the factors that are outside of the control of an operator of the industry, but are likely to have
significant impact on a business. The performance of the food industry is affected by the following key
sensitivities.

 Raw material pricing

 Production technology
 Final product demand

Key Success Factors

These are the factors within the control of the operator and which should be followed in order to be
successful.
 Availability, quality and prices of different flavor of food.
 Generic promotion of the nutritional advantages of food product.
 Automation of the industry: Increasing automation allows plant to optimize production and
reduce labor although this affects employment.
 Dedicated leaders and professional management.
Key Drivers

 Changes in life style

 Demographic changes
 Urbanization

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  Income growth: income growth, which affects the purchasing power of consumers, is one of
the most important factors that drive consumers to consume hotel service.

3.2. Sector Success Factors

 Continuous Production: Since there is competition with food producing after releasing and make
quality food in consumer it should be continuously produced unless otherwise there might be a
chance to shift to other food producing in order to get better flavor.
 Advertisement: Since there is competition there should be promotion and advertizing works in
order to enhance market share.
 Professionalism: Successful project background history tells us that they were following effective
and profession based management system.
 Multi brand name products: One factory should sell its food products with different brand name
in that way he can maximize the market share.

The opportunities of setting up a rental and restaurant business are therefore as follows:
 Increase the shelf-life of the food.
 Increase food security.
 Add variety to the diet.
 Improve nutrition and health.
 Add value to the preparing and generate increased income.
 Minimize lack of rental office
 Create employment opportunities in producing areas.

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 3.3. SWOT (In Matrix) Analysis of the Project

 Strength  Weaknesses

 New building offers possibilities to differentiate  Size of the building might turn into
from competitors weakness
 New buildings are preferred over elderly buildings  Concept is not new and does not
 Located in industrial area surrounded by stimulate market growth
international companies
 Closeness to highway increases comfort for
customers and suppliers
 Modern &standardize bed with good price-
performance ratio
 Opportunities  Threats

 Industrial zone, houses international companies with  Stagnating or even decreasing

many potential customers demand
 Fairs offer current increase in utilization and  Bad economic conditions
possibilities to establish name in an international  High cost of capital in Ethiopia
environment  Switching from private traffic to
public transportation reduces
number of possible customers
 Strong &well established
competition

Product Description and Application

Gulale Building is one of the rental and restaurant which facilities’ food, drinks, bed rooms, rental and
other services are provided in an efficient, cordial and pleasant manner and style. Operating these
businesses, especially at require cleanliness and neatness of services to be provided and efficiency,
cordiality and good manner on the part of its workers.
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4. MARKET STUDY AND PRODUCTION PROGRAM

4.1. Market Study

4.1.1. Present Demand and Supply

The oromia Region encompasses the major economically attractive centers of the country. The major
ones are Finfine, Bishoftu and Adama towns. To be economically strong sites are very important to
Country growth and need to give much interest for the investors who wants to invest on service
activities like hotel, restaurant, rental of building and other. A number of domestic and foreign peoples
visit these Adama town every day since the town is become the center training and meeting hall of
federal, NGO and Regional government.

Even if construction of building for business is highly under way in adama and also a few number of
hotel service, restaurant serviceand office/shop rental service it was not satisfied the demand of the
mentioned activities at the whole in the town. This implies that there is high demand and low supplies
for the above individual interest.

Do to these fact most of the demand for food, bed and others will high. On the other hand there is high
demand for office/shop rental service. This show that adama is the town in which different
commodities are highlytraded.

As a result of the above the feasibility of the market for this project is high. And to invest in adama
town on the stated project lead the owner to be economically, social and cultural make strong and well
competitive with the investor in/out of adama town.

4.1.2. Projected Demand

Office rental and restaurant service is one of the potential sectors of the country to generate income. Its
contribution towards export and GDP growth is increasing.

4.1.3. Pricing and Distribution

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Pricing of a hotel and restaurant services could be classified into three main categories i.e. food, soft
drink and bed and office rent. In this regard the daily average price by category of service is given in
Table 1 bellow.

Type of Average unit

Quantity/day Capacity(Annual) Revenue( birr)
service price(birr)
Food 300 person 85.00 10,800.00 918,000.00

Restaurant 150 persons 45.00 54,000.00 2,430,000.00

495 meter
Rental for 700.00 5,940.00 4,158,000.00
squre 2 office

Bed Night 17 bed 500.00 6,120.00 3,060,000.00

Total 10566000.00

4.2. Customers
4.2.1. Price Sensitivity
Based on the conducted on-site visits, we conclude that most customers are business people. Therefore,
we believe that there is certain flexibility in the price sensitivity for this customer segment due to the
fact that most customers stay one or two nights and the company usually covers the expenses. Hence,
the average business turnover is less price-sensitive. On the other side, we think that the average
customer want our service prefers low or moderate prices. Therefore, the average customer is rather
price sensitive.

4.2.2. Customer Power

The relative high supply of construction of building at interested site for the market in the town implies
a high customer power. This results in tense competition and price pressure. Nevertheless, this is most
likely only true in low demand periods during economic decline. Most interviewees stated that during
expositions and similar events most sometimes beds are fully bookedbut on the other hand during the
modification of your building customers have high exposure to handle the shop before anybody.

Conclusively, the customer power in this business depends to a certain extend on seasonal events and
certainly constant filling.

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 4.2.3. Suppliers

We assume that due to the high availability of suppliers for almost all respects, the power of suppliers
is believed to be relatively low or at maximum moderate. There are no suppliers specialized only in the
Rental and Restaurant industry.

4.2.4. Marketing Strategy 

4.2.5. Target Market  

Gulale Building Rental Service will target consumers seeking a thirst quencher but looking for an 

alternative to Quality food with minimum price.  The ideal service consumer is a  professional  or  mid‐
high  income earner,  male or  female, who  tries to  live  a healthy, active  lifestyle. They  are a
conscious  shopper who  are aware  of  brands  and  identify with  them and  seek to  be involved  with
the community.  Our service will meet the   quality required by   all customers.  

4.2.6. Competition  

The Gulale Building Rental Service concept brings a different product offering to

customers unlike any of the primary competition. The Gold customers will be the dedication and
commitment to support the   local community and charity organizations.  

Some key differentiators for Gulale Building Rental Service product  are  the  focus on  providing 

a  significant benefit  to the  community  through a  15%  contribution  to  local   charities,  schools, or
other institutions;   no other business like Gulale Building Rental Service firm  specifically
provide to a  health and fitness  targeted  concept;  prices  will  be  competitive  with   other   
businesses who sell refreshments and beverages. Gulale Building Rental Service project will serve a 
very niche market.  The consumer makes  the purchase decision  based  on immediate  thirst  and 
availability.

4.3. Production Program

The service program of the proposed rental and restaurant is assumed to start at 70% in the first year
and increases by 10% until 100% is reached in the consecutive year.

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 4.3.1. Raw Materials and Utilities

4.3.2. Availability and Source of Raw materials

Required raw materials for thisservice include food items, (soft and alcoholic), room clothing,
detergents and the likes. All raw materials are available in the domestic market.

Annual Requirement and Cost of Raw Materials and Utilities

The cost of annual requirement of raw materials of the project is estimated as percentage of the
respective service revenue as indicated in Table 2 bellow.

Type Of Service Revenue Percentage Average Cost

918,000 0.6
Food 550,800.00
.00 0

2,430,000. 0.6
Restaurant 1,458,000.00
00 0

4,158,000. 0.1
Rental for 415,800.00
00 0

3,060,000. 0.1
Bed Night 306,000.00
00 0

Total 10566000.00 2730600.00

4.3.3. Electricity & Water (Utility) and Furniture Cost Determination

Utility costof the project is estimated to be about Birr 5,328 per annum and cost of furniture and
equipment is Birr 255,000.

4.4. Production and service Process

The main processes of establishing Gulale Building rental business is located in adama town which
surrounded by Arsi Zone and East Shwa Zone include studying the market, securing land,
constructing buildings, equipping and furnishing the buildings and starting the operations of the
businesses.

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 4.4.1. Furniture and Equipment

Furniture and equipment required for Gulale Building rental business could broadly be classified into
three categories. These are;

 Bed room furniture,(includes beds, mattress, blankets, bed sheets, tables, chairs, cap boards, etc)
 Restaurant furniture and equipments (tables ,chairs, glasses etc)
 Kitchen utensils ( forks, spoons, trays, dish, deep freezer, etc)

Estimated cost of such furniture and fixture and working capital for our hotel required with
additionally is estimated in Table 3 bellow.

Furniture and Fixture Quantity Cost in Birr

Bed room 10 bed & blankets 120,000
Tables 20 40,000
Chairs 20 10,000
Kitchen set 70,000
Office Furniture 15,000
Sub -Total 255000.00
Working Capital Requirement 1,408,814.50
Total 1,663,814.50

5. HUMAN RESOURCE AND TRAINING REQUIREMENT

5.1. Human Resource

The project will require about 12 employees as indicated in Table 4 bellow with annual salary of Birr
237,600.

Salary Monthly Annual Salary

Sr. Required
Position Scale Salary Expense
No. Number
(Birr) (Birr) (Birr)
I. requirement of manpower
General Manager 1 5,000 5,000 60,000
Casher 1 2,500 2,500 30,000
Receptionist 1 1,500 1,500 18,000
Waiter 4 1,000 4,000 48,000
Kook 1 2,000 2,000 24,000

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 Assistant Kook 1 1,200 1,200 14,400
Cleaner 1 600 600 7,200
Driver 1 2,000 2,000 24,000
Guard 1 1,000 1,000 12,000
Grand Total 12 16,800 19,800 237,600
NB: Salary assumed to increase 5% annually

5.2. Training Requirement

For restaurantservices trained manpower is available in the market.

General Manager

 Developing long term and annual objectives and strategies for the firm;
 Monitoring, evaluation and review of implemented strategies, objectives and plans for the plant;
General management in terms of planning, organizing, leading and controlling the business and
the resources of the firm;
 Management of the overall operation of the plant, sales, grading, etc.;
 Allocation and dictation of roles and responsibilities to the various employees;
 Maintenance of equipment and infrastructure;
 Maintenance of a database on clients, amounts bought and sold and produce losses;
 Management of all financial requirements, sales, bookkeeping, taxes and duties etc.;
 Management of financial resources of the product;
 Decision-making on the financial structure of the plant, personnel management and marketing;
 Management of day to day marketing of the product;
 Identification and implementation of technology advancements for business development.

Receptionist

 Front sales, receptionist and switchboard operator

 Handling of petty cash

Security personnel

 Access control and administration of right of admission

 Alarm response
 Recording and reporting of suspicious activities

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  Patrol duties and checking of premise for break-ins and damages
 Protection of personnel and assets; and Emergency services.
 24 hours each are needed, hence with in all times.

Waiters

 Sales and customer service on the floor;

 Regulation of produce sales;
 Act as cashier;
 Receiving cash, balancing and paying over of cash; and
 Reports to Operational Manager.

Cleaners

 Sweeping of floors, offices, ablutions;

 Refuse removal; and
 General cleaning of area equipment.

6. BALANCE SHEET PROJECTION& FINANCIAL ANALYSIS

6.1. Financial Plan

The Financial Plan sets out the expected financial requirements to set up the service gives an indication
of the estimated operational expenditures and likely incomes that could be generated by firm.

6.2. Source of Fund

The financial study shows that the total investment cost is birr 29,499,871from the total planned
investment birr 22,400,000is to be financed by CBO loan and working capital birr 1,194,871 , 20% of
loan birr 5,600,000 and cost for Furniture and equipment and generator birr 305,000 is financed by the
owner.

6.3. Expected Financial Results

Here, our objective is to provide information about the financial position, performance and changes in
financial position of the project to make rational economic decision. Hereunder, we will try to look

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profit/loss or income statement forecast, cash flow and balance sheet projection, financial rate of return
of the project for potential variables.

Description Year 1 year 15

Sales Revenue 7,396,200.00 10,566,000.00
Profit (Loss) 56,614.93 3,518,498.80
Cumulative Cash Balance 18,620.15 51,115,180.69

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 6.4. Profit/Loss Forecast

Profit/loss forecast presents the results of project’s operations during a period of time. It shows income
earning from the project and expenses incurred in attaining the income. The projected profit/loss
statement reveals that the project will earn net profit of birr56, 6114.93and birr3,518,498.80 during its
first and 10th project years respectively. This indicates that the project could run profitable business
and can maintain objective of its establishment at competitive quality and price.

6.5. Cash Flow Forecast

Cash flow projection provides a look at the movement of cash in and out of the project. It is important
in determining whether or not a project has enough cash to pay its bills, handle expenses and acquire
assets. Thus, it is important to give due attention to identify whether the total inflows of the project
have the capacity to cover all cash outflows during its operational period. Unless, the project will faces
liquidity crisis and fail before achieving its objective of establishment. Based on this fact, the
forecasted cumulative cash balance shows a balance of birr 18,620.15in the first year and will grow
up to birr3,518,498.80at the end of project period, demonstrating that the project will not face liquidity
constraint to finance its operational costs as well as debt obligation.

6.6. The Payback Period of the Loan

The periodic lease payment which shall be paid each month beginning from 28- January, 2019 and
ending on 28-December, 2023 with sixteen (60) equal installments of birr 38,707.34.

Interest Rate 12 %

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Pmt Schedule
Payment Beginning Total
. d Principal Interest
Date Balance Payment
No. Payment
31/7/2020 22,400,000.00 396,977.78 396,977.78 124,444.44 272,533.33
1
31/8/2020 22,275,555.56 395,463.70 395,463.70 124,444.44 271,019.26
2
30/9/2020 22,151,111.12 393,949.63 393,949.63 124,444.44 269,505.19
3
31/10/2020 22,026,666.68 392,435.55 392,435.55 124,444.44 267,991.11
4
30/11/2020 21,902,222.24 390,921.48 390,921.48 124,444.44 266,477.04
5
31/12/2020 21,777,777.80 389,407.40 389,407.40 124,444.44 264,962.96
6
31/1/2021 21,653,333.36 387,893.33 387,893.33 124,444.44 263,448.89
7
29/2/2021 21,528,888.92 386,379.26 386,379.26 124,444.44 261,934.82
8
31/3/2021 21,404,444.48 384,865.18 384,865.18 124,444.44 260,420.74
9
30/4/2021 21,280,000.04 383,351.11 383,351.11 124,444.44 258,906.67
10
31/5/2021 21,155,555.60 381,837.03 381,837.03 124,444.44 257,392.59
11
31/6/2021 21,031,111.16 380,322.96 380,322.96 124,444.44 255,878.52
12
  4,663,804.40 1,493,333.28 3,170,471.11

31/7/2021 20,906,666.72 378,808.89 378,808.89 124,444.44 254,364.45

13
31/8/2021 20,782,222.28 377,294.81 377,294.81 124,444.44 252,850.37
14
30/9/2021 20,657,777.84 375,780.74 375,780.74 124,444.44 251,336.30
15
31/10/2021 20,533,333.40 374,266.66 374,266.66 124,444.44 249,822.22
16
30/11/2021 20,408,888.96 372,752.59 372,752.59 124,444.44 248,308.15
17
31/12/2021 20,284,444.52 371,238.51 371,238.51 124,444.44 246,794.07
18
31/1/2022 20,160,000.08 369,724.44 369,724.44 124,444.44 245,280.00
19
28/2/2022 20,035,555.64 368,210.37 368,210.37 124,444.44 243,765.93
20
31/3/2022 19,911,111.20 366,696.29 366,696.29 124,444.44 242,251.85
21
30/4/2022 19,786,666.76 365,182.22 365,182.22 124,444.44 240,737.78
22

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 31/5/2022 19,662,222.32 363,668.14 363,668.14 124,444.44 239,223.70
23
31/6/2022 19,537,777.88 362,154.07 362,154.07 124,444.44 237,709.63
24
  4,445,777.74 1,493,333.28 2,952,444.46

31/7/2022 19,413,333.44 360,640.00 360,640.00 124,444.44 236,195.56

25
31/8/2022 19,288,889.00 359,125.92 359,125.92 124,444.44 234,681.48
26
30/9/2022 19,164,444.56 357,611.85 357,611.85 124,444.44 233,167.41
27
31/10/2022 19,040,000.12 356,097.77 356,097.77 124,444.44 231,653.33
28
30/11/2022 18,915,555.68 354,583.70 354,583.70 124,444.44 230,139.26
29
31/12/2022 18,791,111.24 353,069.63 353,069.63 124,444.44 228,625.19
30
31/1/2023 18,666,666.80 351,555.55 351,555.55 124,444.44 227,111.11
31
28/2/2023 18,542,222.36 350,041.48 350,041.48 124,444.44 225,597.04
32
31/3/2023 18,417,777.92 348,527.40 348,527.40 124,444.44 224,082.96
33
30/4/2023 18,293,333.48 347,013.33 347,013.33 124,444.44 222,568.89
34
31/5/2023 18,168,889.04 345,499.26 345,499.26 124,444.44 221,054.82
35
31/6/2023 18,044,444.60 343,985.18 343,985.18 124,444.44 219,540.74
36
  4,227,751.08 1,493,333.28 2,734,417.80

31/7/2023 17,920,000.16 342,471.11 342,471.11 124,444.44 218,026.67

37
31/8/2023 17,795,555.72 340,957.03 340,957.03 124,444.44 216,512.59
38
30/9/2023 17,671,111.28 339,442.96 339,442.96 124,444.44 214,998.52
39
31/10/2023 17,546,666.84 337,928.89 337,928.89 124,444.44 213,484.45
40
30/11/2023 17,422,222.40 336,414.81 336,414.81 124,444.44 211,970.37
41
31/12/2023 17,297,777.96 334,900.74 334,900.74 124,444.44 210,456.30
42
31/1/2024 17,173,333.52 333,386.66 333,386.66 124,444.44 208,942.22
43
28/2/2024 17,048,889.08 331,872.59 331,872.59 124,444.44 207,428.15
44
31/3/2024 16,924,444.64 330,358.52 330,358.52 124,444.44 205,914.08
45
30/4/2024 16,800,000.20 328,844.44 328,844.44 124,444.44 204,400.00
46

Page | 16
 31/5/2024 16,675,555.76 327,330.37 327,330.37 124,444.44 202,885.93
47
31/6/2024 16,551,111.32 325,816.29 325,816.29 124,444.44 201,371.85
48
  4,009,724.42 1,493,333.28 2,516,391.14

31/7/2024 16,426,666.88 324,302.22 324,302.22 124,444.44 199,857.78

49
31/8/2024 16,302,222.44 322,788.15 322,788.15 124,444.44 198,343.71
50
30/9/2024 16,177,778.00 321,274.07 321,274.07 124,444.44 196,829.63
51
31/10/2024 16,053,333.56 319,760.00 319,760.00 124,444.44 195,315.56
52
30/11/2024 15,928,889.12 318,245.92 318,245.92 124,444.44 193,801.48
53
31/12/2024 15,804,444.68 316,731.85 316,731.85 124,444.44 192,287.41
54
31/1/2025 15,680,000.24 315,217.78 315,217.78 124,444.44 190,773.34
55
29/2/2025 15,555,555.80 313,703.70 313,703.70 124,444.44 189,259.26
56
31/3/2025 15,431,111.36 312,189.63 312,189.63 124,444.44 187,745.19
57
30/4/2025 15,306,666.92 310,675.55 310,675.55 124,444.44 186,231.11
58
31/5/2025 15,182,222.48 309,161.48 309,161.48 124,444.44 184,717.04
59
31/6/2025 15,057,778.04 307,647.41 307,647.41 124,444.44 183,202.97
60

Pmt Schedule
Payment Beginning Total
. d Principal Interest
Date Balance Payment
No. Payment
61 31/7/2025 14,933,333.60 306,133.33 306,133.33 124,444.44 181,688.89

62 31/8/2025 14,808,889.16 304,619.26 304,619.26 124,444.44 180,174.82

63 30/9/2025 14,684,444.72 303,105.18 303,105.18 124,444.44 178,660.74

31/10/202
64 5 14,560,000.28 301,591.11 301,591.11 124,444.44 177,146.67

30/11/202
65 5 14,435,555.84 300,077.04 300,077.04 124,444.44 175,632.60

66 31/12/202 14,311,111.40 298,562.96 298,562.96 124,444.44 174,118.52

Page | 17
 5

67 31/1/2026 14,186,666.96 297,048.89 297,048.89 124,444.44 172,604.45

68 28/2/2026 14,062,222.52 295,534.81 295,534.81 124,444.44 171,090.37

69 31/3/2026 13,937,778.08 294,020.74 294,020.74 124,444.44 169,576.30

70 30/4/2026 13,813,333.64 292,506.67 292,506.67 124,444.44 168,062.23

71 31/5/2026 13,688,889.20 290,992.59 290,992.59 124,444.44 166,548.15

72 31/6/2026 13,564,444.76 289,478.52 289,478.52 124,444.44 165,034.08

3,573,671.1 2,080,337.8
0 1,493,333.28 2

73 31/7/2026 13,440,000.32 287,964.44 287,964.44 124,444.44 163,520.00

74 31/8/2026 13,315,555.88 286,450.37 286,450.37 124,444.44 162,005.93

75 30/9/2026 13,191,111.44 284,936.30 284,936.30 124,444.44 160,491.86

31/10/202
76 6 13,066,667.00 283,422.22 283,422.22 124,444.44 158,977.78

30/11/202
77 6 12,942,222.56 281,908.15 281,908.15 124,444.44 157,463.71

31/12/202
78 6 12,817,778.12 280,394.07 280,394.07 124,444.44 155,949.63

79 31/1/2027 12,693,333.68 278,880.00 278,880.00 124,444.44 154,435.56

80 28/2/2027 12,568,889.24 277,365.93 277,365.93 124,444.44 152,921.49

81 31/3/2027 12,444,444.80 275,851.85 275,851.85 124,444.44 151,407.41

82 30/4/2027 12,320,000.36 274,337.78 274,337.78 124,444.44 149,893.34

83 31/5/2027 12,195,555.92 272,823.70 272,823.70 124,444.44 148,379.26

84 31/6/2027 12,071,111.48 271,309.63 271,309.63 124,444.44 146,865.19

3,355,644.4 1,862,311.1
4 1,493,333.28 6

85 31/7/2027 11,946,667.04 269,795.56 269,795.56 124,444.44 145,351.12

86 31/8/2027 11,822,222.60 268,281.48 268,281.48 124,444.44 143,837.04

87 30/9/2027 11,697,778.16 266,767.41 266,767.41 124,444.44 142,322.97

Page | 18
 31/10/202
88 7 11,573,333.72 265,253.33 265,253.33 124,444.44 140,808.89

30/11/202
89 7 11,448,889.28 263,739.26 263,739.26 124,444.44 139,294.82

31/12/202
90 7 11,324,444.84 262,225.19 262,225.19 124,444.44 137,780.75

91 31/1/2028 11,200,000.40 260,711.11 260,711.11 124,444.44 136,266.67

92 28/2/2028 11,075,555.96 259,197.04 259,197.04 124,444.44 134,752.60

93 31/3/2028 10,951,111.52 257,682.96 257,682.96 124,444.44 133,238.52

94 30/4/2028 10,826,667.08 256,168.89 256,168.89 124,444.44 131,724.45

95 31/5/2028 10,702,222.64 254,654.82 254,654.82 124,444.44 130,210.38

96 31/6/2028 10,577,778.20 253,140.74 253,140.74 124,444.44 128,696.30

3,137,617.7 1,644,284.5
8 1,493,333.28 0

97 31/7/2028 10,453,333.76 251,626.67 251,626.67 124,444.44 127,182.23

98 31/8/2028 10,328,889.32 250,112.59 250,112.59 124,444.44 125,668.15

99 30/9/2028 10,204,444.88 248,598.52 248,598.52 124,444.44 124,154.08

31/10/202
100 8 10,080,000.44 247,084.45 247,084.45 124,444.44 122,640.01

30/11/202
101 8 9,955,556.00 245,570.37 245,570.37 124,444.44 121,125.93

31/12/202
102 8 9,831,111.56 244,056.30 244,056.30 124,444.44 119,611.86

103 31/1/2029 9,706,667.12 242,542.22 242,542.22 124,444.44 118,097.78

104 29/2/2029 9,582,222.68 241,028.15 241,028.15 124,444.44 116,583.71

105 31/3/2029 9,457,778.24 239,514.08 239,514.08 124,444.44 115,069.64

106 30/4/2029 9,333,333.80 238,000.00 238,000.00 124,444.44 113,555.56

107 31/5/2029 9,208,889.36 236,485.93 236,485.93 124,444.44 112,041.49

Page | 19
108 31/6/2029 9,084,444.92 234,971.85 234,971.85 124,444.44 110,527.41

2,919,591.1 1,426,257.8
2 1,493,333.28 4

109 31/7/2029 8,960,000.48 233,457.78 233,457.78 124,444.44 109,013.34

110 31/8/2029 8,835,556.04 231,943.71 231,943.71 124,444.44 107,499.27

111 30/9/2029 8,711,111.60 230,429.63 230,429.63 124,444.44 105,985.19

31/10/202
112 9 8,586,667.16 228,915.56 228,915.56 124,444.44 104,471.12

30/11/202
113 9 8,462,222.72 227,401.48 227,401.48 124,444.44 102,957.04

31/12/202
114 9 8,337,778.28 225,887.41 225,887.41 124,444.44 101,442.97

115 31/1/2030 8,213,333.84 224,373.33 224,373.33 124,444.44 99,928.89

116 28/2/2030 8,088,889.40 222,859.26 222,859.26 124,444.44 98,414.82

117 31/3/2030 7,964,444.96 221,345.19 221,345.19 124,444.44 96,900.75

118 30/4/2030 7,840,000.52 219,831.11 219,831.11 124,444.44 95,386.67

119 31/5/2030 7,715,556.08 218,317.04 218,317.04 124,444.44 93,872.60

120 31/6/2030 7,591,111.64 216,802.96 216,802.96 124,444.44 92,358.52

Pmt Schedule
Payment Beginning Total
. d Principal Interest
Date Balance Payment
No. Payment
121 31/7/2030 7,466,667.20 215,288.89 215,288.89 124,444.44 90,844.45

122 31/8/2030 7,342,222.76 213,774.82 213,774.82 124,444.44 89,330.38

123 30/9/2030 7,217,778.32 212,260.74 212,260.74 124,444.44 87,816.30

31/10/203
124 0 7,093,333.88 210,746.67 210,746.67 124,444.44 86,302.23

30/11/203
125 0 6,968,889.44 209,232.59 209,232.59 124,444.44 84,788.15

126 31/12/203 6,844,445.00 207,718.52 207,718.52 124,444.44 83,274.08

Page | 20
 0

127 31/1/2031 6,720,000.56 206,204.45 206,204.45 124,444.44 81,760.01

128 28/2/2031 6,595,556.12 204,690.37 204,690.37 124,444.44 80,245.93

129 31/3/2031 6,471,111.68 203,176.30 203,176.30 124,444.44 78,731.86

130 30/4/2031 6,346,667.24 201,662.22 201,662.22 124,444.44 77,217.78

131 31/5/2031 6,222,222.80 200,148.15 200,148.15 124,444.44 75,703.71

132 31/6/2031 6,097,778.36 198,634.08 198,634.08 124,444.44 74,189.64

2,483,537.8
1 1,493,333.28 990,204.53

133 31/7/2031 5,973,333.92 197,120.00 197,120.00 124,444.44 72,675.56

134 31/8/2031 5,848,889.48 195,605.93 195,605.93 124,444.44 71,161.49

135 30/9/2031 5,724,445.04 194,091.85 194,091.85 124,444.44 69,647.41

31/10/203
136 1 5,600,000.60 192,577.78 192,577.78 124,444.44 68,133.34

30/11/203
137 1 5,475,556.16 191,063.71 191,063.71 124,444.44 66,619.27

31/12/203
138 1 5,351,111.72 189,549.63 189,549.63 124,444.44 65,105.19

139 31/1/2032 5,226,667.28 188,035.56 188,035.56 124,444.44 63,591.12

140 28/2/2032 5,102,222.84 186,521.48 186,521.48 124,444.44 62,077.04

141 31/3/2032 4,977,778.40 185,007.41 185,007.41 124,444.44 60,562.97

142 30/4/2032 4,853,333.96 183,493.34 183,493.34 124,444.44 59,048.90

143 31/5/2032 4,728,889.52 181,979.26 181,979.26 124,444.44 57,534.82

144 31/6/2032 4,604,445.08 180,465.19 180,465.19 124,444.44 56,020.75

2,265,511.1
5 1,493,333.28 772,177.87

145 31/7/2032 4,480,000.64 178,951.11 178,951.11 124,444.44 54,506.67

146 31/8/2032 4,355,556.20 177,437.04 177,437.04 124,444.44 52,992.60

147 30/9/2032 4,231,111.76 175,922.97 175,922.97 124,444.44 51,478.53

Page | 21
 31/10/203
148 2 4,106,667.32 174,408.89 174,408.89 124,444.44 49,964.45

30/11/203
149 2 3,982,222.88 172,894.82 172,894.82 124,444.44 48,450.38

31/12/203
150 2 3,857,778.44 171,380.74 171,380.74 124,444.44 46,936.30

151 31/1/2033 3,733,334.00 169,866.67 169,866.67 124,444.44 45,422.23

152 29/2/2033 3,608,889.56 168,352.60 168,352.60 124,444.44 43,908.16

153 31/3/2033 3,484,445.12 166,838.52 166,838.52 124,444.44 42,394.08

154 30/4/2033 3,360,000.68 165,324.45 165,324.45 124,444.44 40,880.01

155 31/5/2033 3,235,556.24 163,810.37 163,810.37 124,444.44 39,365.93

156 31/6/2033 3,111,111.80 162,296.30 162,296.30 124,444.44 37,851.86

2,047,484.4
9 1,493,333.28 554,151.21

157 31/7/2033 2,986,667.36 160,782.23 160,782.23 124,444.44 36,337.79

158 31/8/2033 2,862,222.92 159,268.15 159,268.15 124,444.44 34,823.71

159 30/9/2033 2,737,778.48 157,754.08 157,754.08 124,444.44 33,309.64

31/10/203
160 3 2,613,334.04 156,240.00 156,240.00 124,444.44 31,795.56

30/11/203
161 3 2,488,889.60 154,725.93 154,725.93 124,444.44 30,281.49

31/12/203
162 3 2,364,445.16 153,211.86 153,211.86 124,444.44 28,767.42

163 31/1/2034 2,240,000.72 151,697.78 151,697.78 124,444.44 27,253.34

164 28/2/2034 2,115,556.28 150,183.71 150,183.71 124,444.44 25,739.27

165 31/3/2034 1,991,111.84 148,669.63 148,669.63 124,444.44 24,225.19

166 30/4/2034 1,866,667.40 147,155.56 147,155.56 124,444.44 22,711.12

167 31/5/2034 1,742,222.96 145,641.49 145,641.49 124,444.44 21,197.05

Page | 22
168 31/6/2034 1,617,778.52 144,127.41 144,127.41 124,444.44 19,682.97

1,829,457.8
3 1,493,333.28 336,124.55

169 31/7/2034 1,493,334.08 142,613.34 142,613.34 124,444.44 18,168.90

170 31/8/2034 1,368,889.64 141,099.26 141,099.26 124,444.44 16,654.82

171 30/9/2034 1,244,445.20 139,585.19 139,585.19 124,444.44 15,140.75

31/10/203
172 4 1,120,000.76 138,071.12 138,071.12 124,444.44 13,626.68

30/11/203
173 4 995,556.32 136,557.04 136,557.04 124,444.44 12,112.60

31/12/203
174 4 871,111.88 135,042.97 135,042.97 124,444.44 10,598.53

175 31/1/2035 746,667.44 133,528.89 133,528.89 124,444.44 9,084.45

176 28/2/2035 622,223.00 132,014.82 132,014.82 124,444.44 7,570.38

177 31/3/2035 497,778.56 130,500.75 130,500.75 124,444.44 6,056.31

178 30/4/2035 373,334.12 128,986.67 128,986.67 124,444.44 4,542.23

179 31/5/2035 248,889.68 127,472.60 127,472.60 124,444.44 3,028.16

180 31/6/2035 124,445.24 125,959.32 125,959.32 124,445.24 1,514.08

1,611,431.9 1,4
7 93,334.08 118,097.89

Page | 23
7. SOCIO ECONOMIC BENEFIT
Based on the foregoing presentation and analysis, we can learn that the proposed project
possesses wide range of benefits that complement the financial feasibility obtained earlier. In general
the envisaged project promotes the socio-economic goals and objectives stated in the strategic plan of
the oromia Regional State as well as promote business of the country.

These benefits are listed as follows

A. Profit Generation

The project is found to be financially viable and earns on average a profit of birr 0.32 million per year
and birr 3.2 million within the project life. Such result induces the project promoters to reinvest the
profit which, therefore, increases the investment magnitude in the region.

B. Tax Revenue

In the project life under consideration, the region will collect thousands of birr from corporate tax
payment alone (i.e. excluding income tax, sales tax and VAT). Such result create additional fund for
the regional government that will be used in expanding social and other basic services in the region.

C. Employment and Income Generation

The proposed project is expected to create employment opportunity to 12 citizens of the country. This
would be one of the commendable accomplishments of the project.

D. Pro -Environment Project

The proposed production process is environment friendly.

Page | 24
8. CONCLUSIONS & RECOMMENDATIONS
8.1. Conclusion

Gulale Building Rental service was established with general objectives of to producing quality product
and give quality service for local community & foreigners. The project is located in Adama town
kebele. Beside, the proposed project is ideally located within all infrastructure and services available
in the area.

The financial study shows that the total investment cost is birr 29,499,871 from the total planned
investment birr 22,400,000 is to be financed by CBO loan for working capital and birr 1,194,871 for
Furniture and equipment and birr 255,000 is financed by the owner. After the implementation of the
project, it will become profitable. It will generate average net profit of high amount in the projection
period showing that the project could run profitable business venture. Furthermore, the cash flow
projection also shows a positive cumulative net cash balance indicating that the project will not face
liquidity problem to finance its operational cost and meeting its debt obligation.

8.2. Recommendations

The government desperately needs to encourage the growth of the service industry because the sector
can provide job opportunity, sources of foreign exchange currency, and possibility for vertical
integration with other agriculture, industry and service sectors which in turn has paramount
importance for the overall economic development of the nation. Thus, The Envisaged restaurant and
rental service project will also add its own contribution on the development of the sector.

Page | 25