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Franchise - Model - First1v1

The document outlines a business proposal for an e-waste management company, detailing initial costs, operational expenses, and projected revenues over five years. It includes financial estimates for various types of e-waste, staff salaries, and profit calculations, indicating a net loss in the first year and subsequent years. The proposal also highlights the funding structure, with a 50% equity and 50% debt financing model, and an internal rate of return (IRR) of -34.5%.

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Rutvij Gite
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17 views4 pages

Franchise - Model - First1v1

The document outlines a business proposal for an e-waste management company, detailing initial costs, operational expenses, and projected revenues over five years. It includes financial estimates for various types of e-waste, staff salaries, and profit calculations, indicating a net loss in the first year and subsequent years. The proposal also highlights the funding structure, with a 50% equity and 50% debt financing model, and an internal rate of return (IRR) of -34.5%.

Uploaded by

Rutvij Gite
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Set up a E- WASTE MANAGEMENT

Requirements Estimate Of Business


Number of KG Sold /
TYPES Price
Factory 1,500 sqft month
Office 500 sqft PCB 100 160
Initial Costs ALUMINIUM 150 160
construnction & Land 2,000,000 Rs. BATTERY 100 350

Furniture 100,000 Rs. OLD TV MONITOR 10 300


Machinery / Vehicle 3,500,000 Rs. PLASTIC 100 50
Rental Costs Copper 100 540
Office/ Collection 8,000 /month Total Monthly Sales sum

Staff Profit Calculations


Staff No. Salaries Year - 1

Chief Executive officer 1 30,000 Rs./Month Revenues 1,315,200


sales manager 2 20,000 Rs./Month y/y (%) growth
Truck Driver 1 10,000 Rs./Month Office Rent 96,000
Technicians/Operator 2 10,000
Increament in Salaries 10% per year Salaries 1,200,000

Operations and
Operations & Maintenance
Maintainance 15% As % of Revenues Expenses 197,280
Initial Funding Operating profit (178,080)
Debt - For 5 years 50% Interest Expense 308,000
Interest Rate -
Commercial Loan 11% per year Profit Before Tax (486,080)
Equity 50% Tax @ 30% -
Net Profit (486,080)
Cash Flow
Evaluate the proposal to run this business for 5 years by Calculations 1
investing 50% in the business year 0
Operating Cash Flows/Net Profit
Initial Investment 5,600,000
Initial Funding Amount Debt amount raised / (repaid) 2,800,000
At the end of 5 years deposit amount would
Debt Raised 2,800,000 be returned
Equity Raised 2,800,000 Total Cash Flows 2,800,000
5,600,000 IRR -34.5%

Interest
308,000 10%
20%
25%
30%
35%

Debt %
40%
45%
50%
55%
60%
Commission (%) Commission (Rs.)

80% 12,800
80% 19,200
80% 28,000

80% 2,400
80% 4,000
80% 43,200
109,600

Year - 2 Year - 3 Year - 4 Year - 5

1,446,720 1,591,392 1,750,531 1,925,584


10% 10% 10% 10%
96,000 96,000 96,000 96,000

1,320,000 1,452,000 1,597,200 1,756,920

217,008 238,709 262,580 288,838


(186,288) (195,317) (205,248) (216,173)
308,000 308,000 308,000 308,000

(494,288) (503,317) (513,248) (524,173)


(148,286) (150,995) (153,975) (157,252)
(346,002) (352,322) (359,274) (366,921)
2 3 4 5
Year - 1 Year - 2 Year - 3 Year - 4
(486,080) (346,002) (352,322) (359,274)

(486,080) (346,002) (352,322) (359,274)

Interest Rate %
11% 12% 13% 14%

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