NAME

SHARE HOLDING

BUSINESS BACKGROUND

Mr. Ali Ijaz

(Chairman)

35%

5 years experience as a
VC in COMSAT & 5 years
as Dean in HBS, USA.

Mr. Ghazi Muhammad

Ansar (CEO)

20%

8 years experience as
HOD of Commerce, UCP.

Mr. Umar Farooq

(Director)

15%

5 years experience as
controller examination,PU

Ms. Kashaf Murtaza

(Director)

10%

4 years experience as
Professor in UET, Lahore.

Ms. Fareeha Amir

(Director)

10%

4 years experience as
chairman syndicate com.

Mr. Adeel-ur-Rehman
(Director)

10%

5 years experience as
chairman of disciplinary

Product Description

100% capacity (Rs.)

60% capacity (Rs.)

Commerce Department

2,000,000

1,200,000

Business Administration
Dep.

2,800,000

1,680,000

Communication studies
Dep.

2,200,000

1,320,000

Economics Department

1,800,000

1,080,000

English Department

1,700,000

1,020,000

CHEP Department

1,500,000

900,000

Bio-Chemistry
Department

1,700,000

1,020,000

Information Tech. Dep.

1,300,000

780,000

Social Sciences
Departments

5,000,000

3,000,000

Products

Year 1 Year 2 Year 3 Year 4

Growth Rate

Year 5

Year 6

Year 7 Year 8

5%

10%

20%

40%

55%

60%

80%

Commerce

1,200

1,260

1,320

1,440

1,680

1,860

1,920

2,160

Business Admn

1,680

1,764

1,848

2,016

2,352

2,604

2,688

3,024

Comm. Dept.

1,320

1,386

1,452

1,584

1,848

2,046

2,112

2,376

English dept.

1,080

1,134

1,188

1,296

1,512

1,674

1,728

1,944

CHEP dept.

1,020

1,071

1,122

1,224

1,428

1,581

1,632

1,836

Bio-Chem. dep

1,020

1,071

1,122

1,224

1,428

1,581

1,632

1,836

IT dept.

780

819

858

936

1,092

1,209

1,248

1,404

Social Ssc Dep

3,000

3,150

3,300

3,600

4,200

4,650

4,800

5,400

Exam. center

1,800

1,890

1,980

2,160

2,520

2,790

2,880

3,240

Reg. & Affi.

4,800

5,040

5,280

5760

6,720

7,440

7,680

8,640

Hostels.

1,800

1,890

1,980

2,160

2,520

2,790

2,880

3,240

Proper infrastructure available.

Soil is good for construction.
Large number of educated population is
here.
Large number of staff member will be
near from University location.

Items
Land , building & civil works

Amount
Rs.(000)

Comments

10,000 Based on area , location etc.

Furniture & Equipments

5,000 Tables , chairs , rostrum , white boards

, computer , Projectors ,stationary etc

Transportation & staff vehicle

4,000 Market price

Greenery & decoration

1,500 Quotation

Contingencies

1,000

Pre-operating expenses

2,000 Estimated

IDC

1,000 Interest rate & repayment schedule

Working Capital

2,500 One month staff salary , special funds

for different programs

Total Project Capital cost

27,000

Year 1 : 60 % capacity utilization.

Year 2 : Increase in student strength 5 % and fee 7%.
Year 3 : Increase in student strength 10% and fee 10%.
Year 4 : Increase in student strength 20% and fee remain same.
Year 5 : Increase in student strength 40% and fee 20%.
Year 6 : Increase in student strength 55% and fee 30 %.
Year 7 : Increase in student strength 60 % and fee 50 %.
Year 8 : Increase in student strength 80% and fee 65 %.

Increase in salaries 5 % annually .

Increase in employees benefits 30 %

annually.
Increase in utility expenses 20 % annually.
Increase in general expenses 20 %
annually.
Depreciation: 10% on furniture and
equipments and 15% on vehicles .
Amortization of pre-operating expenses
@ 500,000 per year.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Sales
CGS

GP

19,500 20,475 21,450 23,400 27,300 28,644 31,200 35,100

9,000 9500

10200

10,500 10,975 11275

11000

12500

13000

14250

14500

12,400 14800

15644

16,950 20600

Admin. Exp

500 600

625

800

800

770

850

970

Marketing exp

200 250

305

400

450

500

600

630

Total opr. Exp.

700 850

995

1200

1250

1270

1450

1600

EBIT
Interest

9800 10,125 10,280 11,200 13,550 14,374 15,500 19,000

500 500

500

500

500

500

500

500

Taxes 15%

1470 1519

1542

1680

2033

2156

2325

2850

Net Profit

7,830 8,106

8,238

9,020

11,017 11,718 12,675 15,650

Cash Inflow

Year
0

Year Year
1
2

Year
3

Loan 8 years

13500

EBIT

9800

10125

Depreciation

700

Amortization

500

Total Inflows

27000 8600 8975

Year
4

Year
5

Year
6

Year
7

Year 8

10280 11200 13550 14374

15500

19000

650

600

580

540

500

430

350

500

500

500

500

500

500

500

9180

10120 12510 13374

14570

18150

700

700

700

700

700

700

Owner equity 13500

Cash Outflow
Capital Exp.

24500

Working Cap. 2500

Debt Service
loan

700

Income Tax

1470 1519

1542

1680

2033

2156

2325

2850

27000 2170 2219

2242

2380

2733

2856

3025

3550

Total cash
outflows

700

Project Cost
Cash flow

(27,000) Remaining
Year 1

6430

20570

Year 2

6756

13814

Year 3

6938

6876

Year 4

7740

(864)

Pay Back period

3 years 10.67
months

Year

Cash Flows

PVIF @ 15%(Cost of
capital) for 8 years

Present Value

6430

.870

5594

6756

.756

5108

6938

.658

4565

7740

.572

4427

9777

.497

4859

10518

.432

4544

11545

.376

4341

14600

.327

4774

Total PV

38212

Investment

27000

Net PV

11212

B/C Ratio

1.42 %

Years

Cash Flows

PVIF @ 45 % for 8 years

PV

6430

.690

4437

6756

.476

3216

6938

.328

2276

7740

.226

1749

9777

.156

1525

10518

.108

1136

11545

.074

854

14600

.051

745

Total PV

15938

Investment

27000

Difference

(11,062)

Years

Cash Flows

PVIF @ 17% for 8

years

PV

6430

.855

5498

6756

.731

4939

6938

.624

4329

7740

.534

4133

9777

.456

4458

10518

.390

4102

11545

.333

3845

14600

.285

4161

Total PV

35465

Investment

27000

Difference

8465

IRR=.17+8465/11062-(-8465)*.45-.17

IRR=.17+8465/19527*.45-.17
IRR=.17+.4335*.28
IRR=.17+.12
IRR= 29 %

Payback Period : 3 years 10.67

months
NPV :
11,212.
C/B Ratio :
1.42 %
IRR :
29 %