Addis Ababa University

College of Business and Economics

School of Commerce

Department of Accounting and Finance

Assignment on Project Analysis and Evaluation

Prepared by:

Name ID No. Sec

1. Bezawit Abrham BEE/1370/09 E4A1

2. Fiseha woldemichael BEE/3860/09 E4A1
3. Mekdes Tegegn BEE/2138/09 E4A1
4. Tebikew Mussie BEE/2666/09 E4A1

Submitted to: Instructor Laeke S.

May, 2020

Addis Ababa, Ethiopia

1. Readjustment of priority according to COVID-19 Pandemic situation. the proposals should
be prioritized according to following way-

I. Proposals involving supply of essentials- we know that essentials would never

allowed to be stopped by government, so any project of that kind would not face much
difficulty in implementation. Moreover the government extends some helping hands to
such suppliers as well. For e.g. supply of food.

II. Proposals involving Construction industry- this is an important sector that

contributes greatly in the economic growth of a nation. The Construction Industry is an
investment-led sector where government shows high interest. Government contracts
with Construction Industry to develop infrastructure related to health, transport as well
as education sector. For prosperity of any nation, Construction Industry is essential.
Number of governments has also ordered that certain businesses stop working due to
COVID-19. However, the construction industry has generally not been the subject of
ordered shutdowns. The fact that the health and safety risks of COVID-19 vary from
project to project. For example, people who are working outside, and are not physically
close to each other, may be in a better position to comply with the new health and
safety precautions than people working in an enclosed environment.

III. Proposals involving other supplies but involves less physical contacts- we know the
Covid-19 is highly contagious, so physical contact has to be avoided, if we have some
proposals involving no or minimal physical contacts that are also practical. For e.g.
online shopping (e-commerce), online teaching etc.

2. SWOT analysis in relation to market planning

Marketing plans use strategies to drive more circulation, convert sales, increase engagement,
and build relationships with customers. At the end, they either meet company goals or don’t.
To meet or better yet, exceed those goals, implement the principles of SWOT into marketing
plan. By determining the strengths, weaknesses, opportunities and threats in the business, we
will have a greater understanding of our company’s pain points, customer needs, and how to
 market more effectively. A marketing plan addresses where the company is financially and
also keeping track of customer acquisition. With this information, specific marketing goals
can be set. But by using SWOT, we can go deeper in this stage to get a better understanding
of which goals to set, why, and how.

In order to make SWOT analysis in relation to market planning it is necessary to start by

looking at the strengths, weaknesses, opportunities, and threats in the business.

 What are the strengths either reported through analysis or feedback given by
existing customers? What sales model has been bringing in consistent sales or
customers? These are your strengths.
 What weaknesses exist that can be changed into strengths?
 Opportunities are often external, such as a growing markets or collaborations.
Opportunities can be exploited to achieve the goal if used correctly.
 Threats, also external, can make or break a marketing plan. Are customers migrating
from one online channel to another? Any changing laws or state tax increases? These
are threats to the business.

3. A firm that manufactures and sells medical devices (other than mechanical ventilators)
plans to produce and sell mechanical ventilators
SWOT analysis
Strength
o Strong financial position
o Existing qualified workforce
o Strong management
o Expandability
o Convenient level of accessibility
Weakness
o Low utilizations of risk capital to financing
o A lack of strong linkage between industries and academies
o Support system from research and development not available
 Opportunities
o New business models
o New treatment centers
o Consumer driven influence
o An increasing demand of mechanical ventilators due to COVID-19
o An increasing annual growth of science and research expenditures

Threats
o Excessive dependency of consumers on imports
o Cost of material and manufacturing
o Competition from foreign markets
o Inconsistency of Tax and LC policies
o Poor development of academic knowhow is not well developed in this sector

Marketing Strategy

Medical device manufacturer and seller firm’s target will be on Hospitals, clinics and medical
device distributors in Ethiopia. For this there will be advertising in different forms like
newspaper, TV, radio, press releases, trade shows, product demonstrations, event marketing
Online advertising, social media Online and sales joint marketing with other companies.

In order to reach these targets the company will use different mechanisms. Developing Strong
brand name is its main concern that gets to the heart of the situations and frustrations of its most
common target customers. At the present time, the most important issue is COVID-19 and the
company provides intelligent ventilations solutions for all patients. The brand name will display
knowledge, trust, and reliability. In addition to this there will be advertising in different forms
like newspaper, TV and Radio.

i. An Audit firm (that renders auditing services) plans to start IFRS Consulting
services.
SWOT analysis
Strength
o High expertise power in the sector

o Big market share

o Strong brand equity

o Strong financial position

o Skilled workforce

Weakness

o Incapability of IT work forces

o High fees for high expertise

o Inefficient training procedure for junior audit assistants.

o The absence of foreign affiliation

o Lack of experience in retaining talents

Opportunity

o Emerging markets and expansion abroad

o Product and services expansion

o Enormous growth prospects in emerging markets

o An increasing demand for compliance solution

o An increasing companies looking for expert business solutions

o Companies continuously looking for consulting solutions

o Immense opportunity in emerging economies

o Enforcement of IFRS implementation in the business market

 o Complex tax laws enhancing the opportunity
o Loyal Customers

Threats

o High competition in the market

o Lower profitability

o Cheaper technology

o Economic slowdown

o External changes (government, politics, taxes, etc.)

Marketing Strategy
Consultant target will be on small, medium and large sized which could be new and
existing businesses in Addis Ababa. Then, there will be advertising in different forms like
developing a brochure to be distributed to lending institutions and potentials as well as
prospected customers, becoming an active member in business associations, networking with
the business community. Furthermore, the expectation is that, seminars and workshops will be
used to promote the other consulting services for instance different attendants might be able to
pick up the corporate brochure and ask any questions regarding the services provided. It is
expected that the corporate brochure will outline consultant’s services and payment
arrangement. It will also highlight the past experience and level of expertise of the owners.
The brochures will be distributed at workshops and seminars, to lending institutions,
associations, key business leaders, and to potential clients, government/public offices.

Within the next three years, it expects to develop an internet website which wills highlight key
services, level of expertise and fee arrangement, even though it is not an issue at this
moment. Owners will join local unions and associations to keep up contacts in the business
community as well as to stay well informed about the business issues that are important to
local businesses with regard to new policies issued and any information rendered by
government side or other international institutions too.

3. Identify two project ideas (Projects with no profit motive) which you can undertake.
Project One: Sign language teaching program
i. Sources of identifying the project.
The source of identifying this project is by identifying unfulfilled psychological needs.
Psychological needs are:
 The need for attachment
 The need for orientation and control
 The need for self-esteem enhancement
 The need for increasing pleasure and avoiding pain
One of our group member’s childhood friend is deaf and he is suffering disability in different
ways especially he is unemployed because of this his self-esteem is decreasing and we are
intended to solve this problem.
ii. Stakeholder analysis of the project.

Disabilities Association Project Manager

Sponsor
A>A city labor and social affairs bureau

Suppliers Trainee
Trainer
 iii. Project concept note for the project.

Title: Sign language teaching program

Background

According to WHO’s report Around 466 million people worldwide have disabling hearing loss,
and 34 million of these are children. And it is estimated that by 2050 over 900 million people
will have disabling hearing loss. One of the main impacts of hearing loss is on the individual’s
ability to communicate with others. Spoken language development is often delayed in children
with unaddressed hearing loss. Unaddressed hearing loss and ear diseases such as otitis media
can have a significantly adverse effect on the academic performance of children. They often have
increased rates of grade failure and greater need for education assistance. Accesses to suitable
accommodations are important for optimal learning experiences but are not always available.
Exclusion from communication can have a significant impact on everyday life, causing feelings
of loneliness, isolation, and frustration, particularly among older people with hearing loss. WHO
estimates that unaddressed hearing loss poses an annual global cost of US$ 750 billion. This
includes health sector costs (excluding the cost of hearing devices), costs of educational support,
loss of productivity, and societal costs.

In developing countries, children with hearing loss and deafness rarely receive any schooling.
Adults with hearing loss also have a much higher unemployment rate. Among those who are
employed, a higher percentage of people with hearing loss are in the lower grades of
employment compared with the general workforce.

Improving access to education and vocational rehabilitation services, and raising awareness
especially among employers about the needs of people with hearing loss, will decrease
unemployment rates for people with hearing loss.

To summarize this report, deaf peoples suffer in three main ways:

 Fewer educational and job opportunities due to impaired communication.

 Social withdrawal due to reduced access to services and difficulties communicating with
others.
  Emotional problems caused by a drop in self-esteem and confidence.

So far no remedial action has been taken to address the problem.

Objective

The objective of this project is to preserve, protect and promote the civil, human and linguistic
rights of deaf and hardship of hearing people in Ethiopia.

Output

Upon the completion of the program:

 Unemployment rate in Ethiopian can be decreased.

 Improving access to education and training in order to increase their capacity.
 And finally to improve the life style of the disabled peoples and their families.

Activities and duration

The first activity of this project is assigning trainers’. Then trainees will be recruited and grouped
then suitable time and place for trainees will be settled according to the groups.

The duration of this project is for about 6 months.

Beneficiaries and impacts

 Art schools
Art teachers can teach their disables students in sign language because of this the disabled
students can get access to education according to their wants.
 Selected Institutions
As addressed in the background unemployment is increased because of the disabled
peoples are unable to communicate with others. This project will have a positive impact
for both employers and the disables. The institutions can have competent, concerned,
productive and committed employees, and also having goodwill.
 The disabled Families
It makes their life easier because they can communicate without misunderstanding.
 Service sectors like, cafe & restaurants
 The service sectors can get disabled customers.
 Health facilities
Communication is vital for health centres and having skilled staffs with sign language
can help to handle their clients.

Project management (Monitoring & Evaluation)

INDICATOR DEFINITIO BASELINE TARGET DATA SOURCE FREQUENCY RESPONSIB REPORTING

N LE
What is the What is the How will it be measured? How often will it be Where will it be
How is it current target value? measured? Who will reported?
calculated? value? measure it?

Goal Number of trainees Volunteer 0 92 Trainees enrolment records Monthly Project Monthly enrolment
manager report

Outcomes Understand and describe Sum of all Average Average score- Post Proficiency test in Weekly Trainer Weekly trainers
how signs are modified trainees Pre- score-30 60 communication with deaf report
through inflection (e.g., proficiency peoples (Engage in group
different types of tests score in conversation and exchange
modifiers). communicati information and opinions
on using sign about other disciplines)
language
divided by
the total
number of
trainees

Outputs Number of trainees who Total number 0 92 Attendance records End of every period Trainer Training review
completed the training of trainees report
program who were
present on
both the first
and last day
of the
training
program

Budget
Expenses Quantity Amount Total
Salary for trainers 5 7000 35,000.00
Salary for program organizer 1 8500 8500.00
Rent 1 3000 3000.00
Equipment(chairs, tables) - 25,000 25,000.00
Supplies - 5000 5000.00
Transport allowance for trainees 92 20 x 5 x 4 x 6 220,800.00
Coffee and lunch 98 50 x 5 x 4 x 6 588,000.00
885,300.00

Project Two: street dwellers skill training program

i. Sources of identifying the project.
The source of identifying his project is by identifying unfulfilled psychological needs.
Psychological needs are:
 The need for attachment
 The need for orientation and control
 The need for self-esteem enhancement
 The need for increasing pleasure and avoiding pain
Young street dwellers lack self-esteem, lacks for attachment ad suffers from pain in many ways.
We can see so many young dwellers in street especially around Legehare we are intended to
solve this problem.
ii. Stakeholder analysis of the project.

The stakeholder analysis is made on the basis of the above graph

Women and children NGO
& youth bureau Project manager
A.A city labor and social affairs bureau
Suppliers Trainers
Trainees
Psychiatrists
 iii. Project concept note for the project.

Title: Street Children Project

Background

The numbers of street dwellers have increased in recent years in urban cities of Ethiopia.
According to the report on Progress in Implementing the World Fit for Children Plan of Action
in Ethiopia in 2005, it was estimated that there were a total of 4,885,337 orphans aged 0-17
years. Life on the streets of the capital is continuously tough, even for those who earn enough
each day to afford a bed in similar quarters elsewhere. School is impossible without a city ID
card, begging is stigmatized, and police violence is commonplace. Young boys living on the
streets show troubling tendencies of being violent towards girls and other peoples. Girls usually
end up in domestic service, where sexual abuse is widespread. The US state
department’s 2016 Trafficking in Persons report found that girls as young as eight were working
in brothels around Addis Ababa’s central market. About 80% of girls who come to Retrace
report sexual abuse, though it adds that a rising number of boys are reporting it too. Many
contract hepatitis B, a liver infection that can be transmitted through sex.

Young street dweller faces many Psycho-social challenges such as lack of shelter, poor
sanitation, substance abuse, depression, discrimination and mental health problems, living in the
streets are often homeless, hungry and abused, have very low self-esteem and find it hard to
develop positive relationships with peers or adults and some measures need to be implemented in
order to help street children.

Recently, Ethiopia’s Prime Minister Abiy Ahmed, who came to power, recognized this social ill
and called for a Diaspora Trust Fund, which was established in July to collect financial
contributions from Ethiopians and foreigners of Ethiopian origin living abroad. More than three
million Ethiopians live in foreign lands, including a million in the United States. But there are so
many street young dwellers in Addis Ababa especially around Legehare. So this project is
intended to help the young’s as well as the government by training some skills so they can live
properly.
Objective

Street Children Project to support children and young adults on the street with the aim of
motivating them to build up a more stable future, through rehabilitation programs, access in basic
education, support in skill training and family reintegration. The project aims at improving the
health, welfare and quality of life of street children.

Output

Upon the completion of the program:

 Creating Healthy and peaceful social living for street dwellers

 Provides Protection from abuse
 provision of shelter
 basic economic conditions
 improving family relationship
 Enabling them to participate in their communities as responsible adults.
 Gaining access to key rights that facilitate active learning in formal education
 fostering employment in the formal sector

Activities and duration

The first activity of this project is assigning psychiatrists and trainers’. After these trainees will
be recruited based on their age (15-25). The next activity will be providing health care needs for
street children and helping some children who suffer from drug addiction and other mental
sickness. After this Vocational/Skill training and formal education will be given to them. Skill
training includes automotive industry/ garage, Wood work, Parking, Car washing and Gardening.
Finally a job/income generating will be facilitated to them.

Duration of this project is for about 1 year.

Beneficiaries and impacts

Street dwellers: building their self-esteem makes their life easier.

Government: the government has started consulting with NGOs to help street dwellers and this
project can help the government in order to accomplish its plan towards street dwellers.
 Social: peaceful social living.

Project management (Monitoring & Evaluation)

INDICATOR DEFINITION BASE TAR DATA SOURCE FREQUEN RESPONS REPORTIN

LINE GET CY IBLE G
How is it calculated? How will it be
What is What measured? How often Who will Where will it
the is the will it be measure it? be reported?
current target measured?
value? value
?

Goal Taken from The project capacity is limited in 50 0 50 Trainees result records Monthly Project Monthly

bureau of children manager enrolment report

AALSAB

Outcomes Attitudinal Sum of all test scores for all trainees 0 50 Proficiency test Monthly Psychiatrist Monthly

change among in the project divided by the total s Physiatrist

report
the trainees in number of trainees in the project
the project

Outcomes Skill capacity in Sum of all test scores for all trainees 0 10 Proficiency test Every weeks Trainer Weekly trainers

automotive in the project divided by the total report

industry/ garage number of trainees in the project

Outcomes Skill capacity in Sum of all test scores for all trainees 0 10 Proficiency test Every weeks Trainer Weekly trainers

Wood work in the project divided by the total report

number of trainees in the project

Outcomes Skill capacity in Sum of all test scores for all trainees 0 10
Parking in the project divided by the total
number of trainees in the project

Outcomes Skill capacity in Sum of all test scores for all trainees 0 10 Proficiency test Every weeks Trainer Weekly trainers

Car washing in the project divided by the total report

number of trainees in the project

Outcomes Skill capacity in Sum of all test scores for all trainees 0 10 Proficiency test Every weeks Trainer Weekly trainers

Gardening in the project divided by the total report

number of trainees in the project

Outputs Number of 0 50 Attendance records End of every Trainer Training review

children session report

Budget
Expenses Quantity Amount Total
Salary for trainers 10 7000 x 6 70,000.00
Salary for psychiatrists 2 7000 x 6 14,000.00
Rent for training place 4 places 10,000 X 12 40,000.00
Shelter 10 rooms 30,000 x 12 3,600,000.00
Clothe and shoes 50 3000 150,000.00
Food and drinks - 1,680,000 1,680,000.00
Equipment(chairs, tables) - 25,000 25,000.00
Supplies - 10,000,000 10,000,000.00
15,539,000.00

4.
I. WAAC
Cost of debt = 14% x (1-tax)
= 14 % x (1-30%)
= 9.8%
Cost of equity = R f + beta x (R m –R f)
= 4% + 1.5 x (16%-4%)
= 22%
WACC = W equity x R equity + W debt x R debt
=60% x 9.8% + 40% x 22%
= 14.68%
II. Investment Cost = Fences + Office building + Hives + Prep cost + Production
Equipment + Office equipment
= 1,500,000+1,200,000+2,040,000 + 520,000 +360,000
= 5,620,000
(Hive+ preparation cost=600 x 3000+ 240,000= 2,040,000)
III. Relevant cash inflows are
Revenue= Income Honey+ Income Byproduct
Salvage Value= Hive salvage value+ Product equipment salvage value
Working Cash flow release= WCyr5 – WCyr6
The figures are modeled in the table below
 IV. Relevant Cash outflows are
Investment= Fences + Office building + Hives + Prep cost + Production Equipment +
Office equipment
Expenses other than Rent= Total expense - Rent
Rent
Change in WC (yr1=0- yr1WC, yr2= yr2WC- yr1WC, yr3= yr3WC- yr2WC,
yr4=yr4WC, yr5= yr5WC- yr4WC, yr6= yr6WC- yr5WC)
Tax= -1(Tax)
The figures are modeled in the table below
0 1 2 3 4 5 6

Cash Inflows

Revenue 30,960,000 33,840,000 37,440,000 41,443,200 45,898,560 50,861,664

Salvage Value 190,000

W Cash flow release 2,151,000

Net Cash In Flows 0 30,960,000 33,840,000 37,440,000 41,443,200 45,898,560 53,202,664

Cash Out Flows

Investment (5,620,000)

Expenses less Rent (24,184,000) (24,184,000) (24,184,000) (26,974,000) (26,974,000) (26,974,000)

Rent (800,000) (800,000) (800,000) (800,000) (800,000) (800,000)

Change in WC (1,971,000) 0 0 (180,000) 0 0

Tax (1,521,300) (2,385,300) (3,465,300) (3,829,260) (5,165,868) (6,654799)

Net Cash Out Flows (8,391,000) (26,505,300) (27,369,300) (28,629,300) (31,603,260) (32,939,868) (33,628,799)

Net Cash Flows (8,391,000) 4,454,700 6,470,700 8,810,700 9,839,940 12,958,692 19,573,865

Discount Cash Flows (8,391,000) 3,884,461 4,920,122 5,841,809 5,689,076 6,533,152 8,604,992

Working Capital 1,971,000 1,971,000 1,971,000 2,151,000 2,151,000 2,151,000

*WC= cash balance of Br150, 000 per month+ (Raw materials inventory of 30 days + Cleaning
Supplies of 3 months)
WC yr1-3= 150,000+ (30 x 2 x 600 x 50) + 7000 x 3
WC yr4-6= 150,000+ (30 x 2 x 600 x 55) + 7000 x 3
v. Projected Income Statement
Income Honey Yr1= 12,000 x 12 x 200
Yr2= yr1 x 1.1
Yr3= yr2 x 1.1
Yr4= yr3 x 1.1
 Yr5= yr4 x 1.1
Yr6= yr5 x 1.1
Income Byproduct Yr1& 2=6000 x 12 x 30
Yr3= Yr2 x 1.2
Yr4= Yr3 x 1.2
Yr5= Yr4 x 1.2
Yr6= Yr5 x 1.2
Salary expenseYr1-Yr3= 25 x 12 x 7000
Yr4-Yr6= 25 x 12 x 9000
COGS Yr1-Yr3= 2 x 600 x 365 x 50
COGS Yr4- Yr6= 2 x 600 x 365 x 55
Cleaning supplies Yr1-6= 7000 x 12
Depreciation Yr1-6= Net investment- salvage value =5,620,000-190,000= 905,000
Estimated useful life 6
Profit before Tax= EBIT- Depreciation
Tax= PBT x 30%
Profit after Tax= PBT – Tax
E4A PLC
Income statement
2013 2014 2015 2016 2017 2018

Revenue
Income honey 28,800,000 31,680,000 34,848,000 38,332800 42,166,080 46,382,688
Income byproduct 2,160,000 2,160,000 2,592,000 3,110,400 3,732,480 4,478,976
Expense
Rent (800,000) (800,000) (800,000) (800,000) (800,000) (800,000)
Salary expense (2,100,000) (2,100,000) (2,100,000) (2,700,000) (2,700,000) (2,700,000)
COGS (21,900,000) (21,900,000) (21,900,000) (24,090,000) (24,090,000) (24,090,000)
Cleaning supplies (84,000) (84,000) (84,000) (84,000) (84,000) (84,000)
Other expenses (100,000) (100,000) (100,000) (100,000) (100,000) (100,000)
Total expenses (24,984,000) (24,984,000) (24,984,000) (27,774,000) (27,774,000) (27,774,000)
EBIT 5,976,000 8,856,000 12,456,000 13,669,200 18,124,560 23,087,664
Depreciation (905,0000) (905,0000) (905,0000) (905,0000) (905,0000) (905,0000)
Profit Before Tax 5,071,000 7,951,000 11,551,000 12,764,200 17,219,560 22,182,664
TAX (1,521,300) (2,385,300) (3,465,300) (3,829,260) (5,165,868) (6,654,799)
 Profit After Tax 3,549,700 5,565,700 8,085,700 8,934,940 12,053,692 15,527,865

For the years 2013-2018

vi. Net cash flows for 6 years- dragged from the table above

Net Cash In Flows 0 30,960,000 33,840,000 37,440,000 41,443,200 45,898,560 53,202,664

Net Cash Out Flows (8,391,000) (26,505,300) (27,369,300) (28,629,300) (31,603,260) (32,939,868) (33,628,799)

Net Cash Flows 8,391,000 4,454,700 6,470,700 8,810,700 9,839,940 12,958,692 19,573,865

vii. The project is feasible because its passes all the criteria as described below
a. Payback period = 2ys, hence the money is returned with 2yrs

Year 0 1 2 3 4 5 6
Net cash flows (8,391,000) 4,454,700 6,470,700 8,810,700 9,839,940 12,958,692 19, 573,865
Cumulative net (8,391,000) (3,936,300) 2,534,400 11,345,100 21,185,040 34,143,732 53,717,597
cash flows

b. ARR = 159% >40%, therefore it is feasible

ARR= Average net income before tax/average investment

Average net income before tax= 3,549,700+5,565,700+8,085,700+8,934,940+12,053,692+15,527,865

6
= 53,717,597= 8,952,932.8
6

Average investment = 5,620,000

ARRR=8,952,932.8 =1.593*100= 159.3%

5,620,000
c. NPV = 27082612 > 0 , therefore the project is feasible

year Net Cash Factor Present Value

Flows(CF) (CF/Factor)
0 (8,391,000) (1+14.68%)0 =1 (8,391,000)
1 4,454,700 (1+14.68%)1= 1.1468 3,884,461.109
2 6,470,700 (1+14.68%)2=1.1515024 4,920,122.282
3 8,810,700 (1+14.68%)3=1.508214295 5,841,809.104
4 9,839,940 (1+14.68%)4=1.729620154 5,689,075.707
5 12,958,692 (1+14.68%)5=1.983528392 6,533,151.756
6 19, 573,865 (1+14.68%)6=2.27471036 8,604,992.24
 NPV
27,082,612

d. PI = 4.22 >1 , therefore the project is profitable

PI= present values of cash inflows= 35,473,612.19= 4.23
Initial INV 8,391,000
e. IRR = 78% > WACC, hence feasible

year Net Cash Present Value Present Value Present Value Present Value
Flows(CF) 65% 75% 78% 79%
0 (8,391,000) (8,391,000) (8,391,000) (8,391,000) (8,391,000)
1 4,454,700 2,699,818.182 2,545,542.857 2,502,640.449 2,488,659.218
2 6,470,700 2,376,749.311 2,112,881.633 2,042,261.078 2,019,506.258
3 8,810,700 1,961,365.723 1,643,979.009 1,562,249.546 1,536,212.594
4 9,839,940 1,327,567.688 1,049,156.451 980,194.9057 958,473.9776
5 12,958,692 1,059,598.773 789,534.1589 725,205.612 705,173.5478
6 19, 573,865 970,002.6559 681,472.4395 615,398.7005 595,056.7731
NPV 2,004,102.333 431,566.5484 36,950.29119 -87,917.63152

f. Discounted Payback Period = 2yrs <3 yrs., hence feasible

year Net Cash Flows Present Value Factor. Discounted cash flow. Cumulative discounted
(CF) PV=1/(1+i)n CF*PV cash flow
0 (8,391,000) 1 (8,391,000) (8,391,000)
1 4,454,700 0.871991628 3,884,461 (4,506,539)
2 6,470,700 0.7603694 4,920,122 413,583
3 8,810,700 0.663035752 5,841,809 6,255,392
4 9,839,940 0.578161625 5,689,076 11,944,468
5 12,958,692 0.504152097 6,533,152 18,477,620
6 19, 573,865 0.439616408 8,604,992 27,082,612

Discounted payback period= 1 + |-4,506,539| / 4,920,122

= 1+ 4,506,539/4,920,122

= 1+ 0.9159

= 1.9 year
References

https://www.aa.com.tr/en/africa/ethiopia-glue-addicts-on-streets-beg-to-survive/1296565

https://www.unicef.org/worldfitforchildren/files/Ethiopia_WFFC5_Report.pdf

https://www.iyfnet.org/sites/default/files/WW_Street_Children_0.pdf

https://www.unicef.org/evaldatabase/files/ETH_2000_800.pdf

https://www.productplan.com/glossary/stakeholder-analysis/

https://www.productplan.com/glossary/stakeholder-analysis/

https://www.youtube.com/watch?v=BkUCcJwwvAQ

https://www.researchgate.net/publication/
305768566_IMPLEMENTATION_OF_PROJECT_MONITORING_AND_EVALUATION_TO
_IMPROVE_PROJECT_EFFECTIVENESS_AND_EFFICIENCY

https://simplicable.com/new/project-concept