PROJECT PROPOSALFORFUEL STATION PROJECT PROJECT LOCATION: WEST ARSI ZONE SHASHAMANE

TOWN,OROMIA REGIONAL STATEPRMOTER- ADUGNA BUSA HAJIJULY, 2022Shashamane /ETHIOPIA

AD

Download to read ad-free.

TABLE OF CONTENTSTABLE OF
CONTENTS................................................................................................................2EXECUTIVE
SUMMARY.............................................................................................................41.INTRODUCTION...........
.........................................................................................................51.1.Objective of the
project.....................................................................................................61.2.Profile of the
Promoter......................................................................................................61.3.The Economic Significance
of the Project........................................................................71.4.Location and Premises
Required.......................................................................................82.MARKET
STUDY.................................................................................................................112.1.Scope of the Market
Study..............................................................................................112.2.Market
Demand...............................................................................................................112.3.Market
Supply.................................................................................................................132.4.Target
Customers............................................................................................................132.5.Market
Prospects.............................................................................................................132.6.Marketing
Promotion and Strategy.................................................................................132.7.Service
program..............................................................................................................142.8.Sales
Plan/Capacity.........................................................................................................143.SERVICE MIX AND
CIVIL WORK OF THE PROJECT...................................................153.1.Service
mix.....................................................................................................................153.2.Civil Engineer Building
and Civil Works.......................................................................164.ORGANIZATION AND
MANAGEMENT..........................................................................174.1.Organization and
Management.......................................................................................174.2.Man
Power......................................................................................................................174.3.Organizational
Structure.................................................................................................175.FINANCIAL REQUIRMENT AND
ANALYSIS.................................................................205.1.Total Initial Investment
Cost...........................................................................................205.1.1.Fixed
Investment.....................................................................................................205.2.Annual Service
(Production) Cost at Full Capacity........................................................225.3.Financial Analysis and
Statements.................................................................................235.3.1.Underlying
Assumption...........................................................................................24
AD

Download to read ad-free.

5.3.2.Sources of Fund.......................................................................................................255.3.3.Loan
repayment Schedule........................................................................................255.3.4.Depreciation
Schedule.............................................................................................255.3.5.Revenue
Projection..................................................................................................265.3.6.Balance
Sheet...........................................................................................................275.3.7.Income Loss
Statement............................................................................................285.3.8.Cash Flow
Statement...............................................................................................295.3.9.Profitability........................
......................................................................................295.3.10.Break-Even
Analysis...............................................................................................295.3.11.Pay-Back
Period......................................................................................................296.ENVIRONMENTAL IMPACT OF
THE PROJECT............................................................303

AD

Download to read ad-free.

EXECUTIVE SUMMARY1.Project NameFuel Station Project2.Project OwnerADUGNA BUSA

HAJI3.NationalityEthiopian4.Project location West Arsi Zone Shashamane town , Oromoia
RegionalState5.Project CompositionFuel station service (Diesel, Gasoline, Kerosene, LBGgases, Engine
oils, Lubricant and Car wash service)6.Premises Required2500m2 7.Total InvestmentCostBr. 16.5
millionof which 30% equivalent to 5 millionfinanced by the owners equity and the react 70%equivalent
to11.5 million financed through bank loan8.EmploymentOpportunityA total of 32 employees ,14 are
permanent & the rest 18are temporary and contractual employees9.Benefits of theproject For
Theregion/ countryProvide better service, Revenue generation, EmploymentOpportunity, benefits local
economy and stimulate localeconomy.

AD

Download to read ad-free.

 1.INTRODUCTIONThe Ethiopian economy has been registering extraordinary, double digit, and
economic growthfor the last nine years. When there exist fast economic growth in one nation, the
income of thecitizen also increase this phenomena changes the life style and modernization of the
citizen.In order to keep the economic growth long lasting there should be parallel growth and linkage
inall sectors of the economy such as manufacturing and service (tertiary) sector. The developmentof
hotel as one part of service sector has a great contribution to the economy in different ways.However,
the implementation of the fuel station project is concentrates in main woreda of thenation. Hence,
further investments in these areas are very vital for better service provision for thecitizens through that
it supports the economic development.The government of Ethiopia has developed a conducive
investment policy packages and other sectoral reforms at federal and regional level to attract a huge
private investment for thewellbeing of the nation and its citizens as a whole. Besides, it is also currently
implementing thefive years growth and transformation plan (2010/11-2014/15) that gave a space for
thedevelopment industrialization and tertiary sector by private sector.Like the federal government
investment policy packages and incentives, the Oromia regionalstate government has been exerting its
maximum effort to expand investment opportunities in theregion, so as to foster the economic
development of the region and subduing the region’s bigenemy that is the trap of poverty. Therefore,
the regional government has been prepared a viable business environment to attract many domestic
and foreign investors so that the dream of making poverty history turns to be true.Furthermore, this
region is the largest regional state in terms of area and population. The totalarea of the Region is
363,136 km2, accounting for about 34.3 percent of the total area of thecountry. Administratively, the
Region is divided into 18 administrative zones, 304 woredas (out

AD

Download to read ad-free.

of which 39 are towns structured with the level of woredas and 265 rural woredas), more than6,342
peasants and 482 Urban Dwellers Kebeles. (ONRS, PPACC, 2011).Therefore, the visible market gap,
attractive investment policies and deep interest to contributefor the development of birth town attracts
the owners of the envisioned project to establish FuelStation Company in, Shashamane town of Oromia
region.Shashamane townthe capital town is west Arsi which is on the way of the roads Addis Ababato
Southern Ethiopia, main asphalt road and rail way, and the district capital, Bote town isendowed with
different crop production mainly irrigated vegetable and fruit production.The owners of this envisaged
project has a good business experiences and very ambitious toestablish the company by expecting a
good support and facilitation from the regionalgovernment.1.1.Objective of the projectThe main
objective of this project is to establish a standard Fuel Station in West Arsi zoneShashamane town
Oromia Region.1.2.Profile of the PromoterThe promoter of the projectMR Adugna Busa Hajiis a known
business entrepreneur in thearea and also engaging in different business in Bote town and surrounding
area. In addition, theowner of this project hope this project to be the first of many other developmental
projects tofollow as they look forward to share the responsibility of fighting poverty,
reducingunemployment here in Ethiopia. The promoter accumulated diversified skills in the area and
alsoadopted working with many people. Thus, it is these experiences which primarily motivated
thisinvestor to develop the inception of this project idea.The feasibility of the project has been carefully
assessed and the promoters are confident that itwill be a total success. The business will be run by a
team of competent management professionals who have acquired practical achievement in related
business fields. The marketing6

Scribd

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

oriented approach to placement of products and distribution will be primarily based on the needand
preference of the customers and end users.The promoter also is visionary and ambitious business, who
is committed to make a difference intraditional business practice by approaching it in an innovative way.
The promoter is currentlyseeking to establish Fuel Station project which shores up the development
base the country islooking for; as well as meets the growing demand of the service in most wide ranging
like hoteland tourism sectors.1.3.The Economic Significance of the ProjectThe envisaged project deemed
to contribute to the economic development of the region ingeneral and the district/zone in specific with
following ways:1.Provide better serviceBy providing quality services, the project will satisfy the demand
of the customers.2.Source Of RevenueAs public policy of any nation, the government collects different
forms of taxes from different business organizations and individuals. Among the different forms of taxes,
business incometaxes and payroll taxes are collected from undertaking business activities. Therefore,
the projecthas been serving sources of revenue for regional government.3.Employment OpportunityOne
of the problems that our country faced is unemployment. Therefore, the current objective of the
government is working on tackling the problem of unemployment and fostering thedevelopment
process either through creating self-employment or employment in other organization. In this regard,
project will hire 32employees.Besides, during the construction work of the project extra jobs will be
created particularly for local community in construction part4.Benefit For Local Community7

AD
Download to read ad-free.

Apart from employment opportunity for local community, as a corporate responsibility the project has
been engaged in different development activities. This will better worth thecommunity in particular and
contribute for the development of the nation as a whole5.Stimulate The Local EconomyThe project will
increase economic relationship and transactions among different actors in thelocal
economy.1.4.Location and Premises RequiredA.Project LocationThe envisioned project will locate in,
West Arsi Zone, Shashamane town, Oromia RegionalState.Location Map of the area8

AD

Download to read ad-free.

AD

Download to read ad-free.

B.Land RequirementThe total land required by the project is estimated to be 2500M2. The premises
required and landuse plan is indicated in table below;Table. Premises required and land use
planSNDescription Land m2Ground1stFloor2nd Floor 3rdFloor4th Floor1Building (G+4)1.1Ground
(Business Center)600 1.2First Floor(BusinessCenter)550 1.3Second Floor(Bar, Caféand Restaurant )
3501.4Different Offices 3501.5Third Floor(AssemblyHall & Admin Office) 3502Guard house50 3Store100
4Generator House50 5Fuel Station area1300 6Parking, green area androad400Total2500 10

AD

Download to read ad-free.

2.MARKET STUDY2.1. Scope of the Market StudyThe project is targeted for Shashamane town district
cross the vicinity and surrounding area.Hence, the scope of market study of this project concentrates on
the Shashamane town andsurrounding rural villages in general and the kebele in specific
scenario.2.2.Market DemandThere are a number of factors which creates demand for Fuel Station In the
area. The followingmajor factors are identified;Economic activitiesPopulationLocation
ImportanceInfrastructure (road)Availability of different institutions Energy DemandThese major
demand factors for the project are explained as follows1.Economic ActivitiesAccording to responsible
municipalities in the eight towns, the estimated population figure is258,857. This is more than the figure
provided by OUPI and CSA, which are 134,846 and183,138, respectively. However, the figure
demonstrated under the 2007 census survey is228,420. On the other hand, the recent census result
shows the total figure of the rural people inthe Special zone is 566, 069. On the contrary, figures
provided by District Administration andOUPI estimation/projection are 640,781 and 800,356
respectively.2.Location Importance11

AD

Download to read ad-free.

The planned Hotel service use project will be established in Oromia regional state, West
Arsi ,Shashamane town , where the different construction is flourishing from time to time. Becausethis
cash crop area has easy access to the fundamental utilities and other facilities required for construction
area such as treated water supply, electric power, access to telephone line and easyaccess for
transportation and market outlet. Moreover, the regional government has beenundertaking various
measures help boost the growth of investment endeavors in the area byallotting land, and providing
efficient municipal services3.Infrastructure (Road)In the district there exist asphalt all whether and dry
whether roads that connects different areasthat will create a demand for the fuel station
services.4.Availability of Different InstitutionsIn the district, there exist many governmental bureaus.
Besides, there exist non-governmentorganizations (NGOs) and private companies. All these institutions
are potential market demandfor the project5.Energy DemandThe major source of domestic energy
supply is agri-wastes, followed by firewood, animals dung,charcoal and kerosene. Hydro electric light
services and more than 10 fuel stations wereavailable in the district (at Bote towns).Hence, there will be
a good market demand potential for the envisioned project (fuel station) inconsumption of fuels for
vehicles, the district is an Intercept of the roads Addis Ababa toSouthern Ethiopia, Eastern way to
main ,.12

AD

Download to read ad-free.

2.3.Market SupplyIn the Bote town there exist few service provider organizations. Standard restaurants,
cafeterias, pensions, assembly halls, play station and fuel station centers. Besides, all quality services in
oneorganization is almost nonexistence in the woreda kebele’s abroad.2.4.Target CustomersThe target
customers of the envisioned project areThe residents of the kebele and the surrounding
areaMerchants and driversBusiness CommunityDifferent occasional guestsDifferent
institutions( Government, NGOs and Private)Domestic and Foreign tourists and
visitors2.5.MarketProspectsFrom the above analysis of market, it can be deduced that there is a huge
gap between demandand supply for Hotel business in the kebele as well as in the district that will give a
lucrativemarket for the envisioned project.2.6.Marketing Promotion and StrategyTo reach customers
different marketing ways will be used. Among the different marketingstrategies and tools for promotion
controlling the market:Printed and non printed forms of advertising, Sponsorship of key government
activities and public support mechanism.Seasonal discount pricing for guest houses and different
others customer centricmarketing strategies will be used by the company.13

AD

Download to read ad-free.

The Fuel Station under discussion will have diversified marketing strategies that could enable itcome up
with the different competitors in the market. Moreover, customer satisfaction will be thekey marketing
strategy of the building. Generally the project has a competitive advantage sincethere are no many
standard fuel station in the town.2.7.Service programThe organization will initially operate at 70% of its
capacity and will reach 100 %( full capacity)service provision in the second year.2.8.Sales
Plan/CapacitySNDescriptionMeasurementDailyProductionMonthlyproductionAnnualProductionFuel
Station2.1KeroseneLiter 600502.1BenzeneLiter 500302.3DieselLiter 1000052.4Lubricant and oilLiter
15003Bed Rental No.1545054004Meeting HallHall/seat
80/180/1080/1205BarberyPerson1854064806Pool game No of game2575090007Supermarket ____
8Car Wash No of cars515018003.SERVICE MIX AND CIVIL WORK OF THE PROJECT3.1.Service UtilityThe
Fuel Station will provide the following serviceFuel Station14

AD

Download to read ad-free.

The project will provide different fuel energy (like kerosene, benzene and Diesel) for end users by
franchise based business from one of the oil company. Besides, the projects will also saledifferent oil
and lubricants for consumer. Moreover, service like car wash and parking will be provided by the
company.3.2.Civil Engineer Building and Civil WorksAs indicated in part 1 the total land requirement for
the project is estimated to be 2500M2.The buildings are planned to accommodate fuel station, and
other utility requirements as well asgreen areas and parking.In general the buildings must be capable of
being kept clean and provision should be made for keeping the sewerages drained out properly and
room temperature is attained to keep healthyenvironment. In most environments, equipment should be
totally enclosed in a light structure:where the climate is suitable. A concrete floor, which can be swept,
is usual.The site will be encircled by a chain linked fence fastened to concrete posts. The
projectconstruction is designed by professional engineers and construction will be done under
closesupervision and colla Shashamane town of the engineers.4.ORGANIZATION AND
MANAGEMENT4.1.Organization and ManagementThe organizational structure should be in a way that
the fuel station service can able to achieveits objectives as well as the satisfaction of standard
requirement.4.2.Man PowerThe total manpower required for the building will be 32 persons. The
manpower list and thecorresponding labor cost are shown in Part five of this document.15

AD

Download to read ad-free.

4.3.Organizational StructureThe organizational structure of the project is designed by including all the
necessary personnelunder the right division. At the top of the organizational structure, there will be
manager with theresponsibility of supervising the overall activity of the fuel station. Depending up on
the natureof the center and the amount of work to be performs; there exist auxiliary units under the
generalmanager.Employees under each unit will be supervised by the department head that is
accountable for thegeneral manager. General Manager is appointed by the owner.Fig Organization
Structure of the BuildingA.The General Manager’sThe duties and responsibilities of the general manager
are;He/she will plan, organize, direct and control the overall activities of the fuel station. He/she will
devise policies and strategies that will enable the organization profitable.16General ManagerAdmin and
FinanceDepartmentMarkeng DepartmentService ManagementDept.OwnerCar WashParking Engine
OilShopVehicle SparePartFuel StaonEmployee rooms

Scribd

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.
 He/she will plan, organize, direct and control the human and non-human resources of theorganization
(other departments) so as to achieve the short and long run objectives of theorganization.B.Service
Management DepartmentThis is the core department that has six main sections (Fuel station, Car Wash,
Parking area,Engine Oil Shop, Vehicle Spare Parts andemployee rooms)The main duties and
responsibilities of this department are To render those outlined services of the project and manage
the overall service deliverysystem of the motel and fuel station in line with the customer need and
satisfaction.He/she will incorporate modern technological innovation that will facilitate the
servicedelivery of the fuel station Car Wash, Parking area, Engine Oil Shop, Vehicle Spare
Partsandemployee rooms’ services that will increase customer’s satisfaction.C.Administration & Finance
DepartmentThe Admin & Finance Department of the Hotel is responsible for undertaking the
followingactivities:Manage the human resources and control employee’s activity Will manage non
human resources of the organization, which include: effective handlingof the different inventories and
devise strategies of controlling against fraud and damage.Will provide the right material or inventory
to the center with right price at the right time.Will plan, organize direct and control the financial
transaction of the building by using allthe necessary documents.Accountant and cashers that will
collect money from the customers.Will develop sound financial control system by developing modern
financial controlsystems.Will prepare the annual financial statements and prepare condensed reports
for both theGeneral Manager and other concerned government body.D.The Marketing Department17

AD

Download to read ad-free.

Will handle the overall marketing activities of the organization which include planning,organizing,
directing, and controlling.Will develop the marketing strategies.Will develop effective customer
handling strategiesPlan and execute the promotion mix5.FINANCIAL REQUIRMENT AND
ANALYSIS5.1.Total Initial Investment CostThe total amount of money that is required to establish the
envisaged hotel is estimated to be Birr 15.0 million.Table Total Initial Investment CapitalDescriptionCost
in birrLand, Building & Construction6,985,038.5Machines & Equipment’s1,626,750Vehicles3,218,75018

AD

Download to read ad-free.

 Office Equipment83,250Total Fixed Investment Cost11,913,788.5Working capital 2,875,766Pre service
Expense508,593.75Total3,384,359.75Contingency (10%) 1,079,764.1Total Initial Investment
Capital16,377,912.355.1.1.Fixed InvestmentA.Building & Construction Total7985039.2B.Machinery And
EquipmentMachinery and Equipment required for the hotel service is estimated to be ETB
4,200,000.00C.VehiclesNoDescriptionQtyUnit Price inbr.Total Price inbr.Remark1Mini
Bus1500,000500,000Duty free 2Bote Track 13,500,0003,500,0003Generator1200,000200,000Total
4,200,000 D.Ofce EquipmentsSNDescription MeasurementOtyUnit Price inBrTotal Price inBr.1Chairs Unit
201500300002Tables Unit 20100002000003Computer Unit 105000500004Printer Unit
2350070005Computer table with chairsSet101300130006Managerial Chair withtableSet4180072007File
Cabinet Unit 2120024008Self 3220066009Telephone Set Unit 21500300010Decoration Set 7000 Total
326,200.0019

AD

Download to read ad-free.

AD

Download to read ad-free.

16cookers 210 completed 8001920017Supermarket Supervisor110+1 in sales

management15001800018Recipients 110+1 in receptionmanagement8501020019Driver 110 completed
800960020Meeting Hall Supervisor 110+1 in Management 9001080021 Room worker 210 completed
7501800022Barber 110+1 in barber800960025Gardner 1Basic 8009600 Total32 23,550.00478,200
Benefit(20% of the basicsalary) 95,640 Grand Total 573,840iii.Other Opera ng
ExpensesSNDescriptionAnnualCost in brAssumption Used1Property Insurance10,8981% of Fixed
Investment Cost2Audit & Legal Fee750400 per month3Uniforms93830*200br 4Telephone, fax and
postal1,500800 per month5Cleaning goods supplies1,8751000 per month6Repair and
maintenance21,7962% of the Fixed Investment Cost7Advertisement 9,375Lump sum6Stationery and
other officesupplies656350 per month8Electricity3,9840.85*30,000KW per year
9Water7031.5*3,000m3 per year 10Fuel7,8132500 lit*20 per year 11Oil and lubricant78110% of fuel
cost12Miscellaneous Expense4,6883000 per month Total65,757 21

AD

Download to read ad-free.

 5.3.Financial Analysis and Statements5.3.1.Underlying AssumptionThe financial analysis of the
envisioned Motel and is based on the data provided in the precedingsections and the following
assumptions.A.Construction and FinanceConstruction period 22 monthsSource of finance30% equity and
70% loanTax holidays 2 yearsBank interest rate 10 %Operating Costs Increase by 1%Salary and wages
increase by 1%Operating Costs and raw materials Increase by 1%Raw materials increased by 1%Sales
10% increment after 2nd year B.DepreciationBuilding 5%Machinery and equipment 10%Office furniture
10%Vehicles 20%C.Working CapitalAccounts receivable 30 daysRaw material local 30daysWork in
progress 5 daysFinished products 30 daysCash in hand 5 daysAccounts payable 30 days22

AD

Download to read ad-free.

5.3.2.Sources o FundSNDescription% shareAmount(inbirr)1Owners Share305,0000,0002Bank

Loan7011,500,000Total10016,500,0005.3.3.Loan repayment ScheduleYearPrincipalPaymentInterest
(10%)Total AnnualPayment in
brRemainingBalance000018,000,000.0011,800,000.001,800,000.003,600,000.0016,200,000.0021,800,00
0.001,620,000.003,420,000.0014,400,000.0031,800,000.001,440,000.003,240,000.0012,600,000.0041,8
00,000.001,260,000.003,060,000.0010,800,000.0051,800,000.001,080,000.002,880,000.009,000,000.00
61,800,000.00900,000.002,700,000.007,200,000.0071,800,000.00720,000.002,520,000.005,400,000.008
1,800,000.00540,000.002,340,000.003,600,000.0091,800,000.00360,000.002,160,000.001,800,000.0010
1,800,000.00180,000.001,980,000.0005.3.4.Depreciation ScheduleSNDescriptionOriginalValue
InBirrDepreciationrate in %DepreciationPer year inBirr1Construction
andBuilding5,083,3665254168.322Bldg. Machines &Equipments74,050.54107,405.053Assembly
HallEquipments126,853.371012,685.344Vehicle549,141.501054,914.155Office
Equipment203,2001020,320.00 Total6,036,612 349,49323

AD

Download to read ad-free.

5.3.5.Revenue ProjectionBased on the production capacity and program of the Motelindicated in

previous (Chapter 2), therevenue o the organizaon projected as indicated in the table
below;NoDescriptionMeasurementAnnualProductionUnitPriceTotal price Assumption1Fuel
Station54001005400001.1KeroseneLiter 60050169608001.2BenzeneLiter
500302010006001.3DieselLiter 1000051717000851.4Lubricant and oilLiter 150055825001.5Sub Total
4,283,985.00 1.6Bed Rental No.54002001,080,000.001.7Meeting HallHall/seat 12050060,000.0010 day
reserved per month1.8BarberyPerson648030194,400.00Pool game No of
game90001090,000.001.9SupermarketLS__396000Gross sales(br.1100/day) Car Wash No of
cars180080144000Total 7,763,585.00 24

AD

Download to read ad-free.

5.3.6.Balance SheetCurrent AssetValue in Br.Cash1,109,273Inventory of raw materials and

inputs5,875,766Total Current Asset6,985,039Fixed Asset Land, Building and
Construction6,985,039Machineries and Equipment’s 1,626,750Vehicles3,218,750Office Equipment
83,250Total fixed Asset11,913,789Total Asset16,377,912Liability Account payable11,500,000Owners
Equity Capital5,000,000Total Liability & Owners’ Equity16,500,00025

AD

Download to read ad-free.

5.3.7.Income Loss StatementRevenueYear 1Year 2Year 3-10Sales

Revenue8,950,000.009,845,000.0010,829,500.00Purchase of Raw
Material2,932,941.183,226,235.293,548,858.82Gross
profit6,017,058.826,618,764.717,280,641.18Expenses Salary
Expense1,654,800.002,566,800.003,208,500.00Other Operating
Expenses450,000.00495,000.00544,500.00Deprecation
Building180,300.00180,300.00180,300.00Deprecation
Vehicles450,000.00450,000.00450,000.00Deprecation Machineries&
Equip.120,700.00120,700.00120,700.00Deprecation office Equip21,115.0021,115.0021,115.00Interest
Expense595,030.28535,527.25476,024.22Total Expense3,471,945.284,369,442.255,001,139.22Profit
Before Tax2,545,113.552,249,322.462,279,501.96Tax(30% )763534.0646674796.7375683850.5869Net
Profit1,781,579.481,574,525.721,595,651.3726

Scribd

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions!
Start Free Trial

Cancel Anytime.

5.3.8.Cash Flow StatementYearYear 0Year 1Year 2Year 3-10Equity Capital2,000,000.00Loan principal

8,000,000.00 1,958,664.213,710,274.65 Net sale 08,950,000.009,845,000.0010,829,500.00Total cash in
flow10,000,000.008,950,00011,803,66414,539,775Cash payment Purchase of
rawmaterials02,932,9413,226,2353,548,859Salary
expense01,654,800.002,566,800.003,208,500.00Other
Operatingcost0450,000.00495,000.00544,500.00loan
repayment01,190,060.551,130,557.521,071,054.50Tax
payment0763534.0646674796.7375683850.5869Total
payment10,000,000.006,991,3368,093,3909,056,764Cash surplus
/Deficit10,000,000.001,958,664.213,710,274.655,483,010.75CumulativeBalance
1,958,664.213,710,274.655,483,010.755.3.9.ProfitabilityAccording to the projected income statement,
the project will start generating profit in the 1styear of operation. Important ratios such as profit to total
sales, net profit to equity (Return onequity) and net profit plus interest on total investment (return on
total investment) show anincreasing trend during the lifetime of the project.The income statement and
the other indicators of profitability show that the project is viable.5.3.10.Break-Even Analysis The break-
even point of the project including cost of finance when it starts to operates at fullcapacity (year 3) is
estimated by using income statement projection.5.3.11.Pay-Back PeriodThe investment cost and income
statement projection are used to project the pay-back period.The project's initial investment will be fully
recovered with in 6 year of operation.27

AD

Download to read ad-free.

6.ENVIRONMENTAL IMPACT OF THE PROJECTCurrently the issue of environment and envelopment get
due emphasis and thus every citizencalled exert their maximum effort for fighting against any negative
impacts on the environmentso as to result in a win-win solution on common agenda that is creating
environmentally friendly business environment. Therefore, this Hotel project does not cause a negative
impact on theenvironment.28

Share this document

Share or Embed Document

Sharing Options

Share on Facebook, opens a new windowShare on Twitter, opens a new windowShare on LinkedIn,
opens a new windowShare with Email, opens mail clientCopy link

You might also like

Dajane Temesgen

Dajane Temesgen

Document

36 pages

Dajane Temesgen

Ramon Colon

No ratings yet

Project Proposal For Establishment of Marble and Marble Product Manufacturing Plant

Project Proposal For Establishment of Marble and Marble Product Manufacturing Plant

Document

34 pages

Project Proposal For Establishment of Marble and Marble Product Manufacturing Plant

Tesfaye Degefa

No ratings yet

Zerihun Magersa

Zerihun Magersa

Document

31 pages

Zerihun Magersa

madawe adem

No ratings yet
Magazines

Podcasts

Sheet music

Project Proposal Almunium Profile Manufacturing Plant: Project To Be Implemented in Galan Town,
Oromia Region State

Project Proposal Almunium Profile Manufacturing Plant: Project To Be Implemented in Galan Town,
Oromia Region State

Document

37 pages

Project Proposal Almunium Profile Manufacturing Plant: Project To Be Implemented in Galan Town,
Oromia Region State

Tesfaye Degefa

50% (2)

Project Proposal On The Establishment of G+10 Grand City Mall

Project Proposal On The Establishment of G+10 Grand City Mall

Document

39 pages

Project Proposal On The Establishment of G+10 Grand City Mall

Tesfaye Degefa

No ratings yet

Mixed Chala Gurmu

Mixed Chala Gurmu

Document

34 pages

Mixed Chala Gurmu

Tesfaye Degefa

No ratings yet
Feasibility Study On Animal Fattening An (Repaired)

Feasibility Study On Animal Fattening An (Repaired)

Document

48 pages

Feasibility Study On Animal Fattening An (Repaired)

Tesfaye Kibret Tesfaye

100% (1)

Car Assmbly Latest - Bonny Computer HABTAMU

Car Assmbly Latest - Bonny Computer HABTAMU

Document

42 pages

Car Assmbly Latest - Bonny Computer HABTAMU

Tesfaye Degefa

No ratings yet

MIXED USED Robe Mahlet

MIXED USED Robe Mahlet

Document

38 pages

MIXED USED Robe Mahlet

Ramon Colon

No ratings yet

Project Proposal FOR Car Assembly & Parts Manufacturing Plant

Project Proposal FOR Car Assembly & Parts Manufacturing Plant

Document

40 pages
Project Proposal FOR Car Assembly & Parts Manufacturing Plant

Tesfaye Degefa

No ratings yet

Siraj Bakery

Siraj Bakery

Document

27 pages

Siraj Bakery

Onnatan Dinka

100% (3)

Kara Gudina PLCgalan 2hek

Kara Gudina PLCgalan 2hek

Document

38 pages

Kara Gudina PLCgalan 2hek

Tesfaye Degefa

100% (1)

Show more

SavedRemove Adugna Busa Haji Fuel Staion Only from Saved

Footer menu

Back to top

About

About Scribd
Everand: Ebooks & Audiobooks

SlideShare

Press

Join our team!

Contact us

Invite friends

Scribd for enterprise

Legal

Terms

Privacy

Copyright

Cookie Preferences

Do not sell or share my personal information

Support

Help / FAQ

Accessibility

Purchase help

AdChoices

Social

Instagram

Instagram
Twitter

Twitter

Facebook

Facebook

Pinterest

Pinterest

Get our free apps

Documents

Language:

English

Copyright © 2024 Scribd Inc.