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Copy of FM Zorbas Cashflow Analysis(1)

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13 views

Copy of FM Zorbas Cashflow Analysis(1)

Uploaded by

kazi.ahmed26
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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About Value

Initial average ticket by a customer (average purchase $15


amount)
Initial average number of customers per day 400
Annual growth rate of the average ticket 2% in year 2; 1% in
Annual growth rate of the number of customers years
20% in3-5
year 2; 12%
Cost of goods to sales in
35%year 3; 6% in
years 4-5
Annual fixed operating cost without depreciation (rent, $250,000
maintenance,
Annual growthinsurance, shop
rate in fixed manager's salary)
costs 1%
Variable operating expenses to sales 40%
Effective tax rate 25%
Net working capital (NWC) to sales 20%
Percentage of NWC recovered in year 5 90%
Leasing deposit $28,000
Initial investment for the store: equipment, furniture, $1,000,000
renovation
Depreciation amount in year 1 (according to MACRS 5-y 20.00%
class)
Depreciation amount in year 2 (according to MACRS 5-y 32.00%
class)
Depreciation amount in year 3 (according to MACRS 5-y 19.20%
class)
Depreciation amount in year 4 (according to MACRS 5-y 11.52%
class)
Depreciation amount in year 5 (according to MACRS 5-y 11.52%
class)
Residual value 5.76%
Simplifying assumptions 1) The project would be terminated after
2) The acquired assets would be depreci
property class
3) The salvage value would be equal to t
ect would be terminated after year 5
uired assets would be depreciated using MACRS method (Modified Accelerated Cost Recovery System) and assu
ass
vage value would be equal to the residual value of the depreciated assets
Recovery System) and assuming a 5-year
Estimation of Discount rate
Risk free rate 2.21%
cost of Debt 5%
Effective Tax Rate 25%
Proportion of Debt 15%
Proportion of Equity 85%
Market Premium in US 5.40%
Market premium in Greece 15.00%
Levered betas in the industr 0.7-1.4
Year 0
Avg Ticket size
Change in ticket size
Avg Customers
Change in Customers
Avg Daily sales
Annual Sales *365
COGS (35%)
Fixed Operating Cost
1% Growth in Fixed op Cost
Variable Operating Expense
TC
EBITDA
Depretiation
EBIT
25% Tax
Net Income
NWC 20%
Change in NWC $432,000.00
Depretiation
Cash Flow

Leasing Deposit $28,000.00


Initial Investment $1,000,000.00

discount rate 8.87%

₹ 1,558,901.59
₹ 558,901.59
Year 1 Year 2 Year 3 Year 4 Year 5
15.00 15.30 15.45 15.61 15.76
2% 1% 1% 1%
400 480 538 570 604
20% 12% 6% 6%
6000.00 7344.00 8307.53 8894.04 9521.96
$2,160,000.00 $2,643,840.00 $2,990,711.81 $3,201,856.06 $3,427,907.10
$756,000.00 $925,344.00 $1,046,749.13 $1,120,649.62 $1,199,767.48
$250,000.00 252500.00 255025.00 257575.25 260151.00

$864,000.00 $1,057,536.00 $1,196,284.72 $1,280,742.42 $1,371,162.84


$1,870,000.00 $2,235,380.00 $2,498,058.86 $2,658,967.30 $2,831,081.33
$290,000.00 $408,460.00 $492,652.95 $542,888.77 $596,825.77
$200,000.00 $320,000.00 $192,000.00 $115,200.00 $115,200.00
$90,000.00 $88,460.00 $300,652.95 $427,688.77 $481,625.77
$22,500.00 $22,115.00 $75,163.24 $106,922.19 $120,406.44
$67,500.00 $66,345.00 $225,489.71 $320,766.57 $361,219.33
$432,000.00 $528,768.00 $598,142.36 $640,371.21 $685,581.42
$96,768.00 $69,374.36 $42,228.85 $45,210.21 -$388,800.00
$200,000.00 $320,000.00 $192,000.00 $115,200.00 $115,200.00
$170,732.00 $316,970.64 $375,260.86 $390,756.37 $865,219.33
Machine cost $1,000,000.00

Year 1 Year 2 Year 3 Year 4


Depretiation $200,000.00 $320,000.00 $192,000.00 $115,200.00
20.00% 32.00% 19.20% 11.52%
Final Value $57,600.00
Residual value $57,600.00

Revenue minus COGS, variable expenses, fixed costs, and depreciation.


Year 5
$115,200.00
11.52%

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