Test 3 Project Finance Case Question Yogesh Gandhi
Test 3 Project Finance Case Question Yogesh Gandhi
Test 3 Project Finance Case Question Yogesh Gandhi
Weightage
Debt
Equity
Cost
Interest - Debt
Cost of Equity
Year - 1
Opex
Tax Rate
Working Capital requirement
Growth - y/y
3750
2750
25000
10%
10%
5%
Year-1
500,000
12%
et, Gross
licable on PBT
Year-2
1,000,000
Year-3
1,500,000
Year-4
2,500,000
Year - 0
Year - 1
Year - 2
Drivers
Sales Price / Unit
Cost Price / Unit
Volume (qty)
3,750
2,750
25,000
4,125
3,025
26,250
Year - 3
4,538
3,328
27,563
Year - 4
4,991
3,660
28,941
Year - 0
Year - 1
Year - 2
Income Statement
Revenue
Costs
Gross Profit
93,750,000
68,750,000 25,000,000
108,281,250
79,406,250
28,875,000
Operating Costs
EBITDA
18,750,000 6,250,000
21,656,250
7,218,750
Depreciation
EBIT
2,500,000 8,750,000
2,500,000
9,718,750
Interest Expense
Interest Income
EBT
825,000 7,925,000
750,000
455,700
9,424,450
Tax Expense
PAT / Net Income
2,377,500 5,547,500
2,827,335
6,597,115
Year - 3
Year - 4
125,064,844
91,714,219 33,350,625
144,449,895
105,929,923
38,519,972
25,012,969 8,337,656
28,889,979
9,629,993
2,500,000 10,837,656
2,500,000
12,129,993
600,000 1,357,604
11,595,260
375,000
2,371,044
14,126,037
3,478,578 8,116,682
4,237,811
9,888,226
Year - 0
Year - 1
Year - 2
Balance Sheet
Cash
Working Capital
PPE, Gross (Fixed Asset)
Accumulated Depreciation
PPE, Net
Total Assets
Debt
Equity
Retained Earning
Total Liabilities & Sh Equity
check
10,000,000
10,000,000
10,000,000
5,500,000
4,500,000
10,000,000
-
3,797,500
3,750,000
10,000,000
2,500,000
7,500,000
15,047,500
11,313,365
4,331,250
10,000,000
5,000,000
5,000,000
20,644,615
5,000,000
4,500,000
5,547,500
15,047,500
-
4,000,000
4,500,000
12,144,615
20,644,615
-
Year - 3
Year - 4
19,758,703
5,002,594
10,000,000
7,500,000
2,500,000
27,261,297
28,871,527
5,777,996
10,000,000
10,000,000
34,649,523
2,500,000
4,500,000
20,261,297
27,261,297
-
4,500,000
30,149,523
34,649,523
-
Year - 0
Year - 1
Year - 2
- 10,000,000
- 10,000,000
5,500,000 4,500,000
10,000,000 -
5,547,500
2,500,000
3,750,000 4,297,500
500,000 500,000 -
6,597,115
2,500,000
581,250
8,515,865
1,000,000
1,000,000
3,797,500
7,515,865
Cash - BOP
Cash - EOP
3,797,500
3,797,500
11,313,365
Year - 3
Year - 4
8,116,682
2,500,000
671,344 9,945,338
-
9,888,226
2,500,000
775,402
11,612,824
-
1,500,000 1,500,000 -
2,500,000
2,500,000
8,445,338
9,112,824
11,313,365
19,758,703
19,758,703
28,871,527
Year - 0
Year - 1
Year - 2
Returns
Cost of Equity
Free Cash Flow
NPV
IRR
25.00%
(10,000,000)
17,776,630
91.72%
3,797,500
11,313,365
Year - 3
19,758,703
Year - 4
28,871,527
DEBT Schedule
Year 0
BOP
Interest
principal repaid
EOP
Year 1
0
0
0
5500000
Year2
5500000
5000000
825000
750000
500000
1000000
5000000
4000000
Year 3
Year 4
4000000
2500000
600000
375000
1500000
2500000
2500000
0