Wingate Dairy Business

Projected Business plan

Prepared by:
1. Dagem Tesfaye,
2. Zewude Bayleyegn,
3. Mintesinot Astatike,
4. Samuel Tesfaye

Address: Sub City- Yeka

Wereda -09
Tel- 0922 753 555

January 2023
Addis Ababa, Ethiopia

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 Table of Contents
Title page
1. Executive Summary......................................................................................................................................................3
2. Our Mission and Vision Statement...............................................................................................................................4
2.1. Mission....................................................................................................................................................................4
2.2. Vision.....................................................................................................................................................................5
3. Business Description.....................................................................................................................................................5
3.1. Production process..................................................................................................................................................5
4.1. Strength...................................................................................................................................................................6
4.2. Weakness................................................................................................................................................................6
4.3. Opportunities..........................................................................................................................................................7
4.4. Threat......................................................................................................................................................................7
5. Market Analysis............................................................................................................................................................7
6. Marketing and Sales Strategy.......................................................................................................................................7
7.1. Demand Projection.................................................................................................................................................8
7.2. Supply projection....................................................................................................................................................8
8. Target Markets..............................................................................................................................................................8
9. Competitive advantage..................................................................................................................................................8
10. Cost and Sales forecast................................................................................................................................................9
10.1. Cost forecast........................................................................................................................................................9
10.2. Management and organization description.........................................................................................................9
10.2.1. Manpower requirement..................................................................................................................................9
10.2.2. Organization and Management....................................................................................................................10
10.3. Fixed Asset (Machinery, Furniture, tools, and equipment................................................................................11
Table 2- Fixed Assets.......................................................................................................................................................12
10.4. Furniture and fixture..........................................................................................................................................14
10.5. Raw Materials...................................................................................................................................................14
10.6. Requirement of Utilities....................................................................................................................................15
10.7. Factory overhead...............................................................................................................................................15
10.8. Production Cost.................................................................................................................................................16
11. Sales Forecast............................................................................................................................................................17
12. Legal form of the project...........................................................................................................................................18
13. Financial Statement...................................................................................................................................................18
13.1. Balance Sheet....................................................................................................................................................18
13.2. Income Statement..............................................................................................................................................18
13.3. Cash Flow Statement.........................................................................................................................................19
14. Profitability................................................................................................................................................................19
14.1. Net Present Value (NPV)..................................................................................................................................19
14.2. Break-even point.................................................................................................................................................20
15. Conclusion.................................................................................................................................................................20
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16. Loan Amortization Schedule.......................................................................................................................................0

Tables

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Table 1- Manpower forecast (direct & indirect labor)
Table 2- Fixed Assets
Table 3- Office Equipment
Table- 4: Raw and Auxiliary Materials Cost (Annual)
Table -5: Utilities
Table 6- Factory overhead

Appendix - Loan Amortization

1. Executive Summary
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Wingate Dairy Business is a standard and registered construction nail manufacturing to be built in Addis
Ababa in a location suitable for the type of manufacturing business we wish to establish.

Rehoboth Nail Manufacturing Partnership Enterprise is a partnership business that will be run by 5 partners
named:

1. Dagem Tesfaye

2. Zewude Bayleyegn

3. Mintesinot Astatike

4. Samuel Tesfaye

All the partners have similar work experiences in metal production and related works with a high initiation
to work on the intended business.

The reason why we focused on this business is that construction nail is one hardware that is used mainly in
Building construction work, manufacturing boxes for packing, etc. due to the increasing population and the
necessities attached to them, they are always in demand in the market. The most important aspect of the
manufacturing of this product is that the brand is not important as far as iron nails are concerned hence
entrepreneurs can go for the manufacturing at the district or tehsil level.

Keeping the quality standards in mind, they could be on the road to success. For the purpose of marketing,
one can contact hardware stores and stores that keep stuff related to building construction.

We are aware that there are several large and small nails manufacturing companies all around the country,
which is why we spent time and resources to conduct a thorough feasibility study and market survey
(informal) so as to be well positioned to favorably compete with all our competitors.

Rehoboth Nail Manufacturing Partnership Enterprise will always demonstrate its commitment to
sustainability, both individually and as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customer’s needs
precisely and completely whenever they patronize our products. We will cultivate a working environment
that provides a human, sustainable approach to earning a living, and living in our world, for our partners,
employees, and for our customers.

2. Our Mission and Vision Statement

2.1. Mission

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Our Mission is to establish a first-class construction nail manufacturing business whose products will not
only retailed in Addis Ababa but also all over the country.

2.2. Vision

Our vision is to become the leading brand in the construction nail manufacturing industry in the whole of the
country Ethiopia

3. Business Description

A nail is pin shaped sharp object of hard metal typically steel used as a fastener. Nails are driven into the
workpiece by a hammer. A nail holds materials together by friction. The common kind of nail is called “wire
nail” to distinguish it from other types of nails. A tack is a short nail with a wide, flat head used for fixing
carpets to floorboards and for stretching fabric onto the wood.

Wingate Dairy Business is in the manufacturing enterprise to service a wide range of clients and of course to
make profits, which is why we will ensure we go all the way to give our clients and potential clients options.

We will do all that is permitted by the law of the country to achieve our business goal, aim, and ambition of
starting the business. Our product offerings are listed below; Mainly manufacturing construction nails are
Roofing nails (in different kinds). But also following the market demand, we will be manufacturing:

● Precision-turned products and

● Generic nuts, bolts, screws, rivets, and washers

We will produce the above-stated nails in different sizes. The International Building Code requires that
roofing nails have a minimum 12-gauge shank and a 3/8-inch diameter head.
Our intention in starting an Iron nail manufacturing Enterprise is to build a standard business whose
products will be exported to other countries of the world. We will ensure that we put the right structure in
place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer-centric, and ready to work to help us
build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

3.1. Production process

An abstract of the operation way in the nail manufacturing process is as such:

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 � While the dies clamp the wire in place, the free end of the wire is struck by a mechanical hammer.

This deforms the end of the wire into the die cavity to form the head of the nail.

� With the wire still clamped in the dies, a set of shaped cutters strike the opposite end of the nail,

forming the point and cutting the nail free from the rest of the wire coming off the coil.

� The dies open and an expelling mechanism knocks the nail into a collection pan below the machine.

The free end of the wire is drawn from the coil and fed into the machine. The cycle then begins
again.

4. SWOT Analysis

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength, leverage the opportunities that will be available to us, mitigate our risks,
and be well-equipped to confront our threats.

4.1. Strength

Our core strength lies in the high quality of our construction nails and fasteners, the power of our team, and
the state-of-the-art and well–equipped iron nails manufacturing factory that we own. We have a team of
highly trained and experienced staff members that can go all the way to produce top strong and durable iron
nails. We are well positioned in the heart of Boise – Idaho and we know we will attract loads of clients from
the first day we open our nails and manufacturing Enterprise for business.

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 4.2. Weakness

A major weakness that may count against us is the fact that we are new construction nails and manufacturing
Enterprise and we don’t have the financial capacity to compete with multi-million dollars construction nail
and manufacturing companies in the United States and most especially from China when it comes to
manufacturing construction nails and fasteners at a rock bottom prices. So also, we may not have enough
cash reserve to promote our construction nails and manufacturing Enterprise the way we would want to.

4.3. Opportunities

The fact that we are going to be operating our construction nails manufacturing Enterprise in Addis Ababa,
the Capital City of Ethiopia provides us with unlimited opportunities to sell our products to a large number
of dealers and corporate organizations through all regions easily.

We have conducted a feasibility study and market surveys and accordingly, we could know what our
potential clients will be looking for when they visit our construction nails manufacturing factory; so, we are
well-positioned to take on the opportunities that will come our way.

4.4. Threat

Just like any other business, one of the major threats that we are likely going to face is an economic
downturn for the people in Ethiopia. It is a fact that an economic downturn affects purchasing/spending
power of the buyers. Another threat that may likely confront us is inflation or lack of accessing foreign
currency to import raw materials from abroad.

5. Market Analysis

As it is known, due to the problem that happened in our country, there was a significant slowdown in
business activities. Accordingly, the construction sector has been hit harder than other businesses.
Meanwhile, due to the recent relative peace, the construction sector is reviving, and this is a good prospect
for the nail manufacturing Enterprise that we intend to establish.

Based on this and due to the start of the suspended house construction, the job opportunity has doubled, and
we believe that this is the right time to establish a nail manufacturing factory.

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6. Marketing and Sales Strategy

Before choosing a location for Ian Bosman® Nail & Fastener, Inc., we conduct a thorough market survey
and feasibility studies in order for us to be able to penetrate the available market and become the preferred
choice for stakeholders in and around Addis Ababa.

7. Demand & Supply projection

7.1. Demand Projection

The demand for nails is related to the construction and building sectors. New, as well as renovation of
buildings and other constructions, are the main end users of nails.

The growing construction sector development as evidenced by the successive increase of nail supplies is
expected to consume more.

7.2. Supply projection

As it is known, there are many nail manufacturing companies and distributors in our country. However, the
number of suppliers of the product is negligible compared to the current number of home builders. This
indicates that it is a good time to join the current market. Therefore, Concerning the supply side, we will not
be bothered but rather try to take advantage.

8. Target Markets

Perhaps it will be safe to submit that the nail manufacturing Enterprise has the widest range of customers; it
is used in every housing construction. In view of that, we have positioned our construction nails
manufacturing Enterprise to service construction companies and other manufacturing companies all around
Addis Ababa and every other region where we intend to distribute our products.

As we informally conducted market research and a feasibility study through this business plan, we could
identify who our target markets are and what our target market would be expecting from us. We are in
business to manufacture a wide range of construction nails for the following clients;

● Construction companies

● Building materials dealers

● Carpenters and furniture manufacturing companies

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 ● Roofing construction manufacturing companies

9. Competitive advantage

A close study of the construction nail manufacturing companies reveals that the market has become much
more intensely competitive over the last decade. As a matter of fact, we have to be highly creative,
customer-centric, and proactive if we must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading
construction nail manufacturing companies in Addis and other locations.

One thing is certain, we will ensure that we manufacture a wide range of construction nails as a mission, and
screws, nuts, and bolts in the future by meeting international standards. One of our business goals is to make
a “Rehoboth Nail Manufacturing Partnership Enterprise” a one-stop construction nail manufacturing
enterprise for both cottage companies and large corporations. Our excellent customer service culture, online
store, various payment options, and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within
our category (startups construction nails manufacturing Enterprises) in the industry meaning that they will
be more than willing to build the business with us and help deliver our set goals and achieve all our aims and
objectives. We will also give good working conditions and commissions to freelance sales agents that we
will recruit from time to time.

10. Cost and Sales forecast

10.1. Cost forecast

Forecasting in accounting refers to the process of using current and historic cost data to predict future costs.
Forecasting is important for planning purposes – it is necessary to estimate and plan for costs that will be
incurred prior to actually incurring them. Cost forecasting is a useful exercise in determining required
expenditures at the various payment stages of a project. Efficient management of project income is crucial in
making timely payments to the various stakeholders involved in the project. Accordingly, the Wingate Dairy
Business forecast costs are shown here.

10.2. Management and organization description

10.2.1. Manpower requirement

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We are quite aware that there are several construction nail manufacturing companies all over the country
Ethiopia and even in the same location where we intend to locate ours, which is why we are following the
due process of establishing a business.

The plant will employ both production workers and administrative staff. Production workers will consist of
skilled and unskilled workers. The details of manpower and related monthly and annual salaries are given in
Table 1 below.

Table 1- Manpower forecast (direct & indirect labor)

No. Job Title Quantity Monthly Annual Wages

Salary
A. Administration

1 General Manager 1 5,000 00 60,000 00

2 Sales and Marketing officer 1 2,500 00 30,000 00

3 Accountants / Cashiers 1 2,500 00 30,000 00

4 Security 2 1,500 00 36,000

Subtotal 48,000 00

B. Production

5 Factory Head 1 5,000 00 60,000 00

6 Nails Machine Operator 3 5,000 00 180,000 00

Total 7 240,000 00

Grand Total Total 288,000 00

10.2.2. Organization and Management

The management philosophy of Wingate Dairy Business is based on respect for each of our fellow
employees, respect for every client, and individual responsibility. We believe in listening to clients and

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doing our best to embody their vision of a community-minded business dedicated to meeting all their needs
concerning roofing nails. The management team consists of all the partners, who are experienced in
entrepreneurship management. In addition, the following employees will be hired: manufacturing head,
Machine operators, salesperson, cleaner, and security personnel. All the partners will take the senior
management responsibilities directing the production process, sales and production, directing finances, and
marketing.
When the need arises to hire employees, we will hire only employees who demonstrate technical aptitude
and a dedication to excellent customer service. The company structure and personnel plan reflect our
intentions to maintain an organization that is customer oriented and technologically proficient, while
efficiently managing cost controls and productivity. The organogram of the business enterprise is as follows:

General
Manager

Accountant/ Sales and Machine Manufacturing

Casher Marketing officer Operator Head

Security Cleaner

10.3. Fixed Asset (Machinery, Furniture, tools, and equipment

Fixed assets are items that a company plans to use over the long term to help generate income. Fixed assets
are most commonly referred to as property, plant, and equipment. Current assets are any assets that are
expected to be converted to cash or used within a year. Based on this assumption, Wingate Dairy Business
has planned to have the following fixed assets:

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Table 2- Fixed Assets
No Item Simple Description FOB Qty Value
Price
Butt Welding Maschine 3-
● Purpose: To weld the
8mm
1 $300 1 $300
● wire together after breakage

● Size:700*700*1000mm

● Weight: 40kg

Sharpening mill 2-12

● To sharpen the head of the wire

before feeding it into the wire

drawing machine
2 $850 1 $850
● Power: 3kw

● size: 700*700*1100 mm

● weight: 30kg

Wire Drawing Machine

● Purpose: to get the diameter
WSL500-3(3drums) With \
of the steel wire as required.
frequency converter to
adjust the speed ● Power: 15kw(first

● drum) +11kw(second
3 3200 3 $9,600

● drum) +11kw(third drum)

● Size: 3400*1100*1250

● Weight:2.2 ton

Dies for wire drawing Dies of diameter for 10 100

4 Machine different size nails $1,000

5 wire drawing powder make the drawing smoothly 600 1 $600

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 ▪ Motor power:4 kw

▪ Diameter of nails: 2.8-4.5

Nail-making machine Z94-

▪ mm
4C
6 5,800 1 $5,800
▪ Length of nails:50-100 mm

▪ Speed:280 pcs/min

▪ Weight:2 tons

▪ Size: 2250*1500*1450

▪ Motor power:5.5 kw

▪ Diameter of nails: 2.8-5.5

Nail making machine

▪ mm

7 Z94-4.5C 6,100 1 $6,100

▪ Length of nails:50-125

▪ mm

▪ Speed:200 pcs/min

▪ Weight:2 tons

▪ Size: 2350*1500*1450

▪ To Grind the nail cutter

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▪ when it gets blunt

Polishing machine SD-

▪ Including grinding wheel

400 650 1 $650

▪ for the diamond cutter

▪ grinding

▪ Motor: 0.75 kw

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 ▪Weight: 200kg

▪Size: 800x800x1000

9 wire reel To hold the wire for the nail-making 100 4 $400
machine

10 Nail Mould Nail Mould 25 20 $500

11 Nail knife used to cut wire to make the nail point 25 20 $500

12 Pin punch punch the wire to make the nail head 10 20 $200

Grand Total ETB 1,479,894.66

10.4. Furniture and fixture

Table 3- Office Equipment

Quantit Total
Item
Unit y Unit Price Price
00 0
Office Chair pcs 1 2,500 2,500 0
00 0
Office Table pcs 1 5000 5000 0
00 0
Guest Chair pcs 4 1,500 6,000 0
00 0
Desk Computer pcs 2 10,000 20,000 0
00 0
Printer& Copy machine pcs 1 12,000 12,000 0
00 0
Cash register machine pcs 1 5,000 5,000 0
00 0
Total 36,000 50,500 0
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 10.5. Raw Materials

Raw materials are the input goods or inventory that a company needs to manufacture its products. Auxiliary
raw materials are used to enrich the properties of the end products used with their assets. The required raw
materials needed to produce 10,000 kg wire nails is shown below: -

Table- 3: Raw and Auxiliary Materials Cost (Annual)

No. Description Qty/ Unit

kg. Price Total Cost/month Annual Cost
/week /kg. price/week
1 Low carbon steel wire
(for making 4,000kg.
wire nails/week) 4,000 120 00 480,000 00 1,920,000 00 23,040,000 00
2 Packaging (Cartoon)/pkg 2,000 13 00 26,000 00 104,000 00 1,248,000 00

Total - 626,000 00 2,504,000 00 24,288,000 00

N.B. One cartoon paper can contain 5kg nails

10.6. Requirement of Utilities

Utilities required in the process of construction nail production consist of electricity, water, steam, fuel oil,
and lubricating oil. Electricity is required to operate production equipment, power sockets, and lighting
points. Water is required for drinking, sanitation, and for cleaning purposes, Lubricating oil is applied on all
machines to facilitate easy sliding of the machines. The annual requirement of utilities with related costs is
given in Table 4 below.

Table -4: Utilities

No. Description Cost/ Cost/year

month (Birr)
1 Electricity (kWh) 10,000 120,000

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 2 Water (M3) 1,000 12,000

3 Fuel Oil (liters) 10,000 120,000

4 Lubricating oil (kg) 3,120 37,440

Total - 169,440

10.7. Factory overhead

Manufacturing overhead is part of a company’s manufacturing operations, specifically, the costs incurred
outside of those related to the cost of direct materials and labor. This is why manufacturing overhead is also
called an indirect cost.

However, costs that are outside of the manufacturing facilities are not product costs and are not inventorial.
These costs, which include selling, general and administrative expenses, such as corporate salaries, and audit
and legal fees, are simply recorded as expenses and are added to the income statement for the accounting
period in which they occur.

Manufacturing overhead is added to the units produced within a reporting period and is the sum of all
indirect costs when creating a financial statement. It is added to the cost of the final product, along with
direct material and direct labor costs

Table 6- Factory overhead

No
Cost/month
. Description Cost/year

1 Electricity (kWh) 10,000 120,000

2 Water (M3) 1,000 12,000

3 Fuel Oil (liters) 10,000 120,000

4 Lubricating oil (kg) 3,120 37,440

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 6 Maintenance 59,196

Total 348,636

10.8. Production Cost

Cost of production is all the costs that a company incurs when offering a service or manufacturing a product.
It comprises various expenses, including the cost of materials, employee wages, factory maintenance and
shipping costs. Production costs also include state and federal taxes imposed on a company's manufacturing
processes or facilities.

Table 5: Production Cost

Items Cost %

Raw Material and Inputs 28,128,000 97.88

Direct labor 252,000.00 0.82
Factory overheads 348,635.79 1.14
Depreciation 50,713.00 0.17
Total Production Cost 28,779,348.79 1.00

11. Sales Forecast

One thing that we are certain of when we come to the nail manufacturing business, if our factory is well
located and we have a good business network, we will always attract customers cum sales and that surely
translates to an increase in revenue generation for the business.

We are well positioned to take on the available market in Addis Ababa and also the other regions and we are
quite optimistic that we will meet our set target of generating enough income/profits from the first two years
of operations and grow the business and our clientele base beyond Addis to other regions.

We have been able to critically examine the construction nail industry and we have analyzed our chances in
the industry and we have been able to come up with the following sales forecast. The sales projections are

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based on information gathered on the field and some assumptions that are peculiar to startups in Addis
Ababa.

Below are the sales projection for Rehoboth Nail Manufacturing Partnership Enterprise., it is based on the
location of our business and other factors as it relates to construction nail manufacturing startups in Ethiopia.

Table – 7: Sales forecast

Quantity
Type of Socks Unit
Weekly Monthly Annually Price/pc Total Sales

Roofing Nail (3-5 inches) Kg. 4,000 16,000 192,000 150 00 28,800,000 00

N. B: This projection is done based on what is obtainable in the industry and with the assumption that there
won’t be any major economic meltdown and considering future competitor manufacturing. Please note that
the above projection is lower.

12. Legal form of the project

The legal form of our business is private limited company that will be licensed by the concerned government
office.

13. Financial Statement

13.1. Balance Sheet

The balance sheet shows our company’s assets, liabilities, and owner’s equity at a specific point in time. Put
simply, a balance sheet shows what our company owns (assets), what it owes (liabilities), and how much
owners and shareholders have invested (equity). Accordingly, our balance sheet is shown below:

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 Wingate Dairy Business
Balance Sheet
2023-202

Years
Item 1st year 2nd year 3rd year 4th year 5th year

Fixed Asset

Current Assets: 28,800,000 43,200,000 64,800,000 97,200,000 145,800,000

Cash on hand and in Bank 24,939,349 31,174,186 38,967,732 48,709,666 60,887,082

Total Assets 3,860,651 12,025,814 25,832,268 48,490,334 84,912,918

Account payable 1,158,195 3,607,744 7,749,680 14,547,100 25,473,875

Owners Capital 2,702,456 8,418,070 18,082,588 33,943,234 59,439,043

Total Liability and Capital 1st year 2nd year 3rd year 4th year 5th year

13.2. Income Statement

An income statement is a financial statement that shows the company's income and expenditures. It also
shows whether a company is making profit or loss for a given period. The income statement, along with
balance sheet and cash flow statement, helps us understand the financial health of our business.

Wingate Dairy Business

Income Statement
2023-2027

Description 1st year 2nd year 3rd year 4th year 5th year
Revenue
Revenue from Sales
Total Operating Expense
Profit Before Tax
Payable tax (30%)
Net Income
13.3. Cash Flow Statement

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 The cash flow statement is one of the three main financial statements (along with the income statement
and balance sheet) that shows the financial position and health of a business.

The cash flow statement shows actual cash inflows and outflows of a business over a specified period
of time, usually a month or a quarter. The statement then compares cash received to cash spending to
determine if a business’s cash flow is negative or positive. The cash flow statement also often shows
how much cash a business has on hand at the end of a given period of time.
A cash flow-positive business is receiving more cash than it is spending. Likewise, a cash flow-
negative business is spending more cash than it is receiving. Based on this, the Wingate Dairy
Business’s cash flow statement is shown below

Wingate Dairy Business

Cash Flow Statement
2023-2027

Description 1st year 2nd year 3rd year 4th year 5th year
Cash inflow
Revenue from sales
Cash outflow
Raw Material and Inputs
Utilities
Maintenance and repair
Labor direct
Factory overheads
Tax payable
Total Cash outflow
Net Cash inflow

14. Profitability
According to the projected income statement, the project will start generating profit in the first year of
operation. Important ratios such as profit to total sales, net profit to equity (Return on equity), and net
profit plus interest on total investment (return on total investment) show an increasing trend during the
lifetime of the project.
14.1. Net Present Value (NPV)
The net present values of the project over five years were computed using a minimum of 15% for cost and
expenses and 50% for revenue increment. The result of the computation indicates that the project is not
only feasible but also very high NPV and it proves the financial feasibility of the project, as the net
present value is positive for all the years considered.

14.2. Break-even point

It is the assumption that total fixed cost is equal to total service sales. Accordingly, the breakeven point

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of the intended project is shown below: - Break-Even point (units) = Fixed Costs ÷ (Sales price per unit
– Variable costs per unit)
Assume:
 The total annual fixed cost is expected to be 1,530,394.66 ETB
 The life of the fixed asset is assumed to be 30 years
 In terms of year it will be 1,013.16
 And in terms of months, it will be 1,013.15ETB,
 Annual Variable Cost 28,527,349
 Annual Sales = 28,800,000
-Break-Even Point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
= 1,530,394.66 ÷ (28,800,000 -28,514,076)
= 1,530,394.66 ÷285,924
BEP = 534.24 units
Based on this assumption, to become on equilibrium point/Break-even point (the point where fixed cost is
equal to sales which means there is neither profit nor loss), the owner is recommended to produce 561.3
products/services for the first planned year sales. Through intensive promotional activities, the enterprise
shall increase the volume of the products/Services accordingly.

15. Conclusion
Based on the projected plan presented above, involvement in the nail manufacturing business is very
essential. Thus, we need a startup fixed asset stated in the business plan above table1, 479,894.66. ETB. So,
we requested Ethiopian Development Bank to facilitate the required machinery accordingly. And, we also
promised to pay back the required amount of money before the due date.

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22
 16. Loan Amortization Schedule

ENTER VALUES LOAN SUMMARY

Loan amount $1,479,894.66 Scheduled payment $6,490.98
Annual interest rate 11.50% Scheduled number of payments 300
Loan period in years 5 Actual number of payments 61
Number of payments per year 60 Total early payments $0.00
Start date of loan 1/3/2023 Total interest $157,317.70

LENDER
Optional extra payments
NAME Develoment Bank of Ethiopia

PM SCHEDU EXTR CUMULA

PAYMEN BEGINNING TOTAL PRINCIP INTERE ENDING
T LED A TIVE
T DATE BALANCE PAYMENT AL ST BALANCE
NO PAYMENT PAYMENT INTEREST
1 1/3/2023 $1,479,894.66 $6,490.98 $0.00 $6,490.98 $3,654.52 $2,836.46 $1,476,240.14 $2,836.46
2 2/3/2023 $1,476,240.14 $6,490.98 $0.00 $6,490.98 $3,661.52 $2,829.46 $1,472,578.62 $5,665.93
3 3/3/2023 $1,472,578.62 $6,490.98 $0.00 $6,490.98 $3,668.54 $2,822.44 $1,468,910.08 $8,488.37
4 4/3/2023 $1,468,910.08 $6,490.98 $0.00 $6,490.98 $3,675.57 $2,815.41 $1,465,234.50 $11,303.78
5 5/3/2023 $1,465,234.50 $6,490.98 $0.00 $6,490.98 $3,682.62 $2,808.37 $1,461,551.89 $14,112.14
6 6/3/2023 $1,461,551.89 $6,490.98 $0.00 $6,490.98 $3,689.68 $2,801.31 $1,457,862.21 $16,913.45
7 7/3/2023 $1,457,862.21 $6,490.98 $0.00 $6,490.98 $3,696.75 $2,794.24 $1,454,165.46 $19,707.69
8 8/3/2023 $1,454,165.46 $6,490.98 $0.00 $6,490.98 $3,703.83 $2,787.15 $1,450,461.63 $22,494.84
9 9/3/2023 $1,450,461.63 $6,490.98 $0.00 $6,490.98 $3,710.93 $2,780.05 $1,446,750.70 $25,274.89
10 10/3/2023 $1,446,750.70 $6,490.98 $0.00 $6,490.98 $3,718.04 $2,772.94 $1,443,032.66 $28,047.83
11 11/3/2023 $1,443,032.66 $6,490.98 $0.00 $6,490.98 $3,725.17 $2,765.81 $1,439,307.48 $30,813.64
12 12/3/2023 $1,439,307.48 $6,490.98 $0.00 $6,490.98 $3,732.31 $2,758.67 $1,435,575.17 $33,572.31
13 1/3/2024 $1,435,575.17 $6,490.98 $0.00 $6,490.98 $3,739.46 $2,751.52 $1,431,835.71 $36,323.83
14 2/3/2024 $1,431,835.71 $6,490.98 $0.00 $6,490.98 $3,746.63 $2,744.35 $1,428,089.08 $39,068.19
15 3/3/2024 $1,428,089.08 $6,490.98 $0.00 $6,490.98 $3,753.81 $2,737.17 $1,424,335.26 $41,805.36
16 4/3/2024 $1,424,335.26 $6,490.98 $0.00 $6,490.98 $3,761.01 $2,729.98 $1,420,574.26 $44,535.33

0
17 5/3/2024 $1,420,574.26 $6,490.98 $0.00 $6,490.98 $3,768.22 $2,722.77 $1,416,806.04 $47,258.10
18 6/3/2024 $1,416,806.04 $6,490.98 $0.00 $6,490.98 $3,775.44 $2,715.54 $1,413,030.60 $49,973.64
19 7/3/2024 $1,413,030.60 $6,490.98 $0.00 $6,490.98 $3,782.67 $2,708.31 $1,409,247.93 $52,681.95
20 8/3/2024 $1,409,247.93 $6,490.98 $0.00 $6,490.98 $3,789.92 $2,701.06 $1,405,458.00 $55,383.01
21 9/3/2024 $1,405,458.00 $6,490.98 $0.00 $6,490.98 $3,797.19 $2,693.79 $1,401,660.81 $58,076.81
22 10/3/2024 $1,401,660.81 $6,490.98 $0.00 $6,490.98 $3,804.47 $2,686.52 $1,397,856.35 $60,763.32
23 11/3/2024 $1,397,856.35 $6,490.98 $0.00 $6,490.98 $3,811.76 $2,679.22 $1,394,044.59 $63,442.55
24 12/3/2024 $1,394,044.59 $6,490.98 $0.00 $6,490.98 $3,819.06 $2,671.92 $1,390,225.52 $66,114.47
25 1/3/2025 $1,390,225.52 $6,490.98 $0.00 $6,490.98 $3,826.38 $2,664.60 $1,386,399.14 $68,779.06
26 2/3/2025 $1,386,399.14 $6,490.98 $0.00 $6,490.98 $3,833.72 $2,657.27 $1,382,565.42 $71,436.33
27 3/3/2025 $1,382,565.42 $6,490.98 $0.00 $6,490.98 $3,841.07 $2,649.92 $1,378,724.36 $74,086.25
28 4/3/2025 $1,378,724.36 $6,490.98 $0.00 $6,490.98 $3,848.43 $2,642.56 $1,374,875.93 $76,728.80
29 5/3/2025 $1,374,875.93 $6,490.98 $0.00 $6,490.98 $3,855.80 $2,635.18 $1,371,020.12 $79,363.98
30 6/3/2025 $1,371,020.12 $6,490.98 $0.00 $6,490.98 $3,863.19 $2,627.79 $1,367,156.93 $81,991.77
31 7/3/2025 $1,367,156.93 $6,490.98 $0.00 $6,490.98 $3,870.60 $2,620.38 $1,363,286.33 $84,612.15
32 8/3/2025 $1,363,286.33 $6,490.98 $0.00 $6,490.98 $3,878.02 $2,612.97 $1,359,408.31 $87,225.12
33 9/3/2025 $1,359,408.31 $6,490.98 $0.00 $6,490.98 $3,885.45 $2,605.53 $1,355,522.86 $89,830.65
34 10/3/2025 $1,355,522.86 $6,490.98 $0.00 $6,490.98 $3,892.90 $2,598.09 $1,351,629.96 $92,428.74
35 11/3/2025 $1,351,629.96 $6,490.98 $0.00 $6,490.98 $3,900.36 $2,590.62 $1,347,729.60 $95,019.36
36 12/3/2025 $1,347,729.60 $6,490.98 $0.00 $6,490.98 $3,907.83 $2,583.15 $1,343,821.77 $97,602.51
$100,178.1
37 1/3/2026 $1,343,821.77 $6,490.98 $0.00 $6,490.98 $3,915.33 $2,575.66 $1,339,906.44 7
$102,746.3
38 2/3/2026 $1,339,906.44 $6,490.98 $0.00 $6,490.98 $3,922.83 $2,568.15 $1,335,983.61 2
$105,306.9
39 3/3/2026 $1,335,983.61 $6,490.98 $0.00 $6,490.98 $3,930.35 $2,560.64 $1,332,053.26 6
$107,860.0
40 4/3/2026 $1,332,053.26 $6,490.98 $0.00 $6,490.98 $3,937.88 $2,553.10 $1,328,115.38 6
$110,405.6
41 5/3/2026 $1,328,115.38 $6,490.98 $0.00 $6,490.98 $3,945.43 $2,545.55 $1,324,169.95 1
$112,943.6
42 6/3/2026 $1,324,169.95 $6,490.98 $0.00 $6,490.98 $3,952.99 $2,537.99 $1,320,216.96 1
$115,474.0
43 7/3/2026 $1,320,216.96 $6,490.98 $0.00 $6,490.98 $3,960.57 $2,530.42 $1,316,256.40 2
$117,996.8
44 8/3/2026 $1,316,256.40 $6,490.98 $0.00 $6,490.98 $3,968.16 $2,522.82 $1,312,288.24 5

1
 $120,512.0
45 9/3/2026 $1,312,288.24 $6,490.98 $0.00 $6,490.98 $3,975.76 $2,515.22 $1,308,312.47 7
$123,019.6
46 10/3/2026 $1,308,312.47 $6,490.98 $0.00 $6,490.98 $3,983.38 $2,507.60 $1,304,329.09 6
$125,519.6
47 11/3/2026 $1,304,329.09 $6,490.98 $0.00 $6,490.98 $3,991.02 $2,499.96 $1,300,338.07 3
$128,011.9
48 12/3/2026 $1,300,338.07 $6,490.98 $0.00 $6,490.98 $3,998.67 $2,492.31 $1,296,339.40 4
$130,496.5
49 1/3/2027 $1,296,339.40 $6,490.98 $0.00 $6,490.98 $4,006.33 $2,484.65 $1,292,333.07 9
$132,973.5
50 2/3/2027 $1,292,333.07 $6,490.98 $0.00 $6,490.98 $4,014.01 $2,476.97 $1,288,319.06 7
$135,442.8
51 3/3/2027 $1,288,319.06 $6,490.98 $0.00 $6,490.98 $4,021.71 $2,469.28 $1,284,297.35 4
$137,904.4
52 4/3/2027 $1,284,297.35 $6,490.98 $0.00 $6,490.98 $4,029.41 $2,461.57 $1,280,267.94 1
$140,358.2
53 5/3/2027 $1,280,267.94 $6,490.98 $0.00 $6,490.98 $4,037.14 $2,453.85 $1,276,230.80 6
$142,804.3
54 6/3/2027 $1,276,230.80 $6,490.98 $0.00 $6,490.98 $4,044.87 $2,446.11 $1,272,185.93 7
$145,242.7
55 7/3/2027 $1,272,185.93 $6,490.98 $0.00 $6,490.98 $4,052.63 $2,438.36 $1,268,133.30 3
$147,673.3
56 8/3/2027 $1,268,133.30 $6,490.98 $0.00 $6,490.98 $4,060.39 $2,430.59 $1,264,072.90 1
$150,096.1
57 9/3/2027 $1,264,072.90 $6,490.98 $0.00 $6,490.98 $4,068.18 $2,422.81 $1,260,004.73 2
$152,511.1
58 10/3/2027 $1,260,004.73 $6,490.98 $0.00 $6,490.98 $4,075.97 $2,415.01 $1,255,928.75 3
$154,918.3
59 11/3/2027 $1,255,928.75 $6,490.98 $0.00 $6,490.98 $4,083.79 $2,407.20 $1,251,844.97 3
$157,317.7
60 12/3/2027 $1,251,844.97 $6,490.98 $0.00 $6,490.98 $4,091.61 $2,399.37 $1,247,753.35 0

2
0