i

Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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ii

Member

Sri Cha Learn Recycling Company
Miss Pairor Mr Saranyu Miss Sukanya Miss Natthaya Mr Ampon Boonchaloei Eiamchuen Nuamthong Piamsuwan Muangmoon 4931203077 4931203103 4931203115 4931203130 4931203133

Business Administration

Mae Fah Luang University ChiangRai, Thailand
Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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iii

Content
Page Chapter 1: Introduction  Background and Significance of the Project  Project Objectives  Benefits of Project  Activities/Time Frame Chapter 2: Industry Profile  Nature of Industry  Situation of Industry  Vision of the company  Mission  Product/Service  Corporation Level  Business Level  Functional Level Chapter 3: Market Feasibility Study  General Environment Analysis  Political  Economy  Social and Environment  Technology  Competition Analysis (3C Analysis)  Competitor Analysis  Customer Analysis  Competitive Analysis  Marketing Mix Strategy  Sales Forecast/Profit Estimation  Conclusion Chapter 4: Technical Feasibility Study  Production and Operations Analysis  Product Characteristics  Specification, Feathers, Dimension, Life Time  Production/Services Process  Location  Facility Layout  Industrial Cost  Machine/Tools/ Equipments  Logistics Management  Cost of Investment  Administration Cost

1 5 5 6

7 9 12 12 13 17 18 19

21 22 23 24 27 30 31 33 35 40

41 42 44 46 46 48 50 52 54 56

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iv Page Chapter 5: Financial Analysis  Income Statement  Cash Flow  Balance Sheet  All financial Statements are in monthly base Chapter 6: Risk Management Business Risk Operation Risk Market Risk Financial Risk Management Risk Risk Assessment Chapter7: Summary

59 64 69 74

86 87 87 87 89 90 93

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v

List of Table
Page

Table 1 Quantity of solid waste by province of northern region Table1.1 Quantity of solid waste by district and municipality (2006) Table2.1 Quantity of solid waste by district and municipality (2005) Table 2.2 Company’s competitors in Chiang rai

3 4 10 11

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vi

List of Figure
Figure 2.1 Steel Figure 2.2 Plastic Figure 2.3 Bottle Figure 2.4 Paper Figure 2.5 Metal Figure 3.1 Product Figure 3.2 Price Figure 3.3 Place Figure 4.1 Inside the company Figure 4.2 Outside the company Figure 4.3 Outside the company Figure 4.4 Hydrolic Nck Figure 4.5 Scale-VW Platform Figure 4.6 Truck Figure 4.7 Truck Digital Weighting Machine Figure 4.8 Metal Cutter Figure 4.9 Forklift Figure 4.10 Tractor Page 13 14 14 15 16 33 34 34 46 47 47 50 50 50 51 51 51 51

Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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1

CHAPTER 1 Introduction
Background and Significance of the Project

According to quantity of solid waste in Chiang Rai trend to increase continuously in each year (Table 1, 2 sources: Pollution Control Department, Ministry of Natural Resources and Environment). Moreover, the government policy (Ministry of Natural Resources and Environment) create the campaigns to motivate people to reduce quantity of waste and try to use the recycle products in Thailand. They planed to have at least 300 junk shops spreading every parts of Thailand. The significant of waste recycling business in Thailand is to separate the type of waste to the process of recycling. The high technology is used to manage and try to get the highest profit from waste. According to the report of Manager online website1 said that 95% of waste is like the gold. It can generate high income to the business and trend to be high required from industry in the future. From the information, the company sees this great opportunity for doing the recycling waste business. The kind of this business gets the less attention from the entrepreneurs and there is not enough junk shop in Chiang Rai compare to the other business and quantity of waste in each year. Waste recycling business is the business that can generate high profits to entrepreneur and also have high competition in the market. The company should find the interesting strategy to persuade the customer and suppler. Sri-Cha-Learn company is located in Maekorn sub district where has the large area for collecting inventories and easy for transportation. The good location of our store will attract the customer to come to store with the convenience transportation, clean workplace, and good environment. The company will start from the small business under SMEs, also stand for the national’s standard because it should be reliable and valuable. Moreover, the company will use the high technology and high quality machines for separating wastes and smooth transportation. This benefit of this project will be studied the possibility of waste recycling store in Chiang Rai and try to solve the problems in this business. It can be the guideline for the company to investment in waste recycling business. The report will determine in the corporate level, business level and functional level of waste recycling Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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2 store such as cost for equipment, buying price, selling price and costs of operation. Data from the study can be used to decide in investing in waste recycling store and reduce the risks that can be occurred.

* Source: -

(1)

Manager on line website on June 10, 2008 http://www.manager.co.th/Science/ViewNews.aspx?NewsID=9510000067671

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3
Provincial Total Total ChaingMai Lumphun Lampang Uttaradit Phrae Nan Phayao ChiangRai MaeHongSon Nakhon Sawan UThai Thani Kamphaeng Phet Tak Sukhothai Phitsanulok Phichit Phetchabun 6,121 1,029 201 385 227 261 174 252 556 111 457 200 348 284 324 499 271 542 Quantity of Solid (ton per day) Municipality 2,195 495 78 180 76 109 51 98 198 43 172 65 78 117 79 159 88 145 Non-municipality 3,926 570 123 205 151 152 123 154 258 68 285 135 270 167 245 340 183 397

Table 1: QUANTITY OF SOLID WASTE BY PROVINCE OF NORTHERN REGION: 2006

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Quantity in ton per day Area/Region ChiangRai Province Muang ChiangRai ChiangRai Town Municipality WiangChai WiangChai Subdistrict Municipality ChiangKhong BunReang Subdistrict Municipality WiangChiangKhong Subdistrict Municipality Thoeng BanPlong Subdistrict Municipality WiangThoeng Subdistrict Municipality Phan MueangPhan Subdistrict Municipality PaDaet PaNgae Subdistrict Municipality PaDaet Subdistrict Municipality Quantity 181.50 Percent 100.00

82.00

45.17

8.00

4.40

1.50 10.00

0.82 5.50

4.00 3.00

2.20 1.65

9.00

4.95

2.00 5.00

1.10 2.75

Table 1.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY (CHIANG RAI ): 2005

Source : Pollution Control Department, Ministry of Natural Resources and Environment Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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5 Project Objectives

1. To study the process of capital requirements in the recycling business. 2. To compute the risk analysis and sales forecast of recycling business. 3. To plan for doing human resource and marketing. 4. To study trend and situation of this business.

Benefits of Project

1. Gathering the information about the process of capital requirements in the recycling business. 2. Evaluating feasibility and impact of this business. 3. Knowing how to manage human resource and marketing. 4. Understanding the trend and situation of this business.

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6 Activities/Time Frame

-

-

Operation Plan November December January February Collecting general data such as price of products and equipments, supplier, business processing, etc. from other junk shops in Chiang Rai. Find a suitable location to compute the budget. Market survey Marketing Analysis Production Analysis Financial Analysis Risk Management Summary

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7

CHAPTER 2 Industry Profile
Nature of Industry

Recycle means to process old, used items in order that the material can be used to make new products. Examples of things that are often recycled are glass, plastic, newspapers, aluminum cans, used motor oil, and batteries. Here, reduce refers to lessening the amount of items or resources that are consumed, using only the amount that is needed, and looking for alternatives that will lessen our use. Before you get new products from recycling, they have to past the process of recycling which start at the first step required for recycling is collecting recyclable materials from communities. Today many major cities and larger communities offer a curbside pick up service for recyclable materials. Families, who recycle items such as paper, bottles and cans, place the items in recycling collection bins. These bins usually have the recycling symbol on them. This is one of the most important steps for recycling because if people do not separate their recyclable materials from their trash then the materials will not be recycled. Instead they will be sent to the landfill with other trash. Apart from the items you may recycle at home, many other things such as old tires, computers, mattresses, cars and more are recycled for parts and materials. The second step involves processing the recyclable materials. This includes sorting the materials into groups, cleaning them and getting them ready to be sold to manufacturers who will turn the materials into new products. Manufacturing is the third step in the recycling process. Today many products are made out of either total or partial post consumer (recycled) materials. Many items you may see every day are made from recycled materials. Newspapers, paper towels, office paper, plastic bottles and aluminum cans are not only made of recycled materials, but they can also be recycled again. The last step, but certainly not the least, involves the purchasing of recycled products. When consumers purchase products that have been made with post consumer material the recycling process has been completed and can then be repeated.

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8 Recycling helps reduce the amount of trash that is disposed of in landfills. Recycling, rather than throwing things away, is also better for the environment and generates the money.

Source: www.chevroncars.com/learn/wondrous-world/recycling-process Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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9 Situation of Industry

Today the waste industry or waste management company can generate high profits to entrepreneur. According to the special report of Naewna Newspaper(1) reported that the amount of General waste is around 36million tons, while "industrial waste" volume is divided into 22 million tons, 17 million tons of toxic waste and garbage that become recyclers and the last is "waste recycling" which has around 4-5 million tones. The average waste is increasing by 10-15% a year in Thailand. For more understanding, we can explain the waste disposal rate will be 1 person per 1 kg / day. According to quantity of solid waste in Chiang Rai(2) trend to increase continuously in each year. Moreover, the government policy
(3)

supports to reduce

quantity of waste in Thailand and all parties recognize on the product that can be recycled because it is not just for making money, it can help industry and the world reduce production costs, environmental problems and reducing waste also. They planed to have at least 300 junk shops spreading every part of Thailand. Currently, there is not enough junk shop in Chiang Rai compare to the quantity of waste in each year. Those are the reasons for establish Sri-Cha-Learn Recycling Company. Sri-ChaLearn has recognized on the value of the waste that people throw away to become money. Based on the value of the merchandise, people will be able to purchase items that range in cost (number of recycling waste). The company started from the small business under SMEs, also stand for the standard of Thailand policy because it can make our store reliable and can stand in the uncertainty economic. Sri-Cha-Learn Recycling Company showcases innovative recycled-content products and puts you in touch directly with our manufacturer. Whether you are a wholesale buyer or an individual consumer, use this catalog to discover a variety of quality recycled-content products designed with your needs in mind. The recycling process involves a series of steps to produce new products. The recycle waste businesses make high profit to the entrepreneurs. Sri-Cha-Learn Recycling Store has to face with high competition. From the information of Establishment of Demonstrative Environmental Technology Center report that there are 28 waste stores in ChiangRai included 7 stores registered in Muang district such as such as ChaingRaiKongKao, Wongpanit, Thairung, ChaingRaiWera, and SinThai2 which are the main competitors of the company.

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10 Quantity of Waste in ton per day Area/Region ChiangRai Province Muang ChiangRai ChiangRai Town Municipality WiangChai WiangChai Subdistrict Municipality ChiangKhong BunReang Subdistrict Municipality WiangChiangKhong Subdistrict Municipality Thoeng BanPlong Subdistrict Municipality WiangThoeng Subdistrict Municipality Phan MueangPhan Subdistrict Municipality PaDaet PaNgae Subdistrict Municipality PaDaet Subdistrict Municipality Quantity 181.50 Percent 100.00

82.00

45.17

8.00

4.40

1.50 10.00

0.82 5.50

4.00 3.00

2.20 1.65

9.00

4.95

2.00 5.00

1.10 2.75

Table 2.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY (CHIANG RAI ): 2005

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11 Company’s Competitors

Province
ChaingRai ChiangRai Town Municipality

Company’s name
ChaingRaiKongKao Wongpanit Thairung ChaingRaiWera Wanarom *** SinThai2 *** ChaLearn RungLuang *** *** *** ChiangRai Weera Siriwatthana MaeLao ChaLearnkankah Janyouyong ChaLearnPol Jeerenant ChiangHai Sirimas *** *** *** *** *** *** S.P. recycle 28 shops

Quantity of purchasing per day (ton per day)
paper 0.700 Plastic 0.600 Glass 1.500 Alumi nium 0.020 copper 0.020 brass 1.100 steel 1.010 other 0.100

Total
5.050

WiangChai Subdistrict Municipality Pakrohkam Subdistrict Municipality WiangPaPhao Subdistrict Municipality

1.869 1.092 1.200 1.250 0.153 2.400 0.073 0.100 0.520 0.020 0.060 0.020 0.150 0.030 0.920 0.240 1.030

0.460 0.184 0.050 0.150 0.216 0.047 0.037 0.050 0.020 0.030 0.030 0.030 0.050 0.030 0.011 0.027 0.050 1.500

3.000 1.570 1.100 1.880 0.185 0.934 1.650 0.100 0.700 0.050 0.560 1.050 1.000 0.050

0.050 0.280 0.100 0.027 0.037 0.009 0.147 0.200 0.020 0.050 0.010 0.010 0.010 0.002 0.002

0.060 0.018 0.051 0.017 0.021 0.005

0.230 0.013 0.009 0.027

2.546 0.201 0.700 1.114 1.760 1.065 1.051 0.070 0.050 1.030 0.350 1.020 0.700 0.500 0.950 1.026 0.550 0.500 0.720 0.350 0.010 0.050 1.020 1.350 1.054 0.950 21.697 0.004 0.249 0.013

8.215 3.358 3.201 4.447 2.399 4.460 2.958 0.570 1.330 1.270 1.020 2.150 1.968 0.631 1.884 2.331 3.067 2.520 0.818 2.445 0.333 1.097 1.102 1.558 1.939 1.343 2.372 65.836

0.050 0.020 0.010 0.010 0.010 0.005 0.002

0.030

0.050

MueangPhan Subdistrict Municipality MaeLao Subdistrict Municipality BanHlar Subdistrict Municipality MaeChan Subdistrict Municipality Maechan MaeSruy Subdistrict Municipality

0.003 0.017 0.001

0.010 0.050

1.025 1.400 0.500 1.000

0.020 0.020 0.036 0.008 0.002 0.003

0.604 0.200 1.040 1.060 0.500 0.050 0.101 0.100 15.482

0.320 0.120

0.020 0.003

0.020 0.160 0.001 0.002 0.017 0.017 0.002 0.002 1.668

0.002

0.002 0.001

JadeeLuang Subdistrict Municipality BanPlong Subdistrict Municipality Wiang Teng Subdistrict Municipality Total

0.042 0.020 0.500 0.050 0.060 4.684 0.020 0.137 1.250 20.641 0.004 1.087

0.002

0.002 0.329

Table 2.2: COMPANY’S COMPETITORS IN CHIANGRAI

Source :

(1)

(2)

(3)

Naewna newspaper, special report on September 3rd, 2007 “Waste.....treasure of 4 thousand million” Table 1: Pollution Control Department, Ministry of Natural Resources and Environment Ministry of Natural Resources and Environment Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand

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12 Vision of the company

“Be the number one of Waste recycling store in ChiangRai and Northern with the best service”

Mission Sri-Cha-Learn Recycling Company will use the high technology and high quality machines for separating wastes and smooth transportation. The effective business plans is used in our in store to face the future situation and to tell the employee for working in the same way. Sri-Cha-Learn Recycling Company also emphasize on the quality of living of employees which should have good workplace, safety, social insurance, and satisfied salary. Moreover, we should emphasize on the customer to response customers need and provide the optimal thing return to customer as well.

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13 Product/Service

There are many kinds of recycling waste that our shop purchased to the process of recycling. The importance factors that we concerns are the safety of products and human, transportation and regulation. The product that our shop purchased will be as follow:

Steel

Figure 2.1 : Steel

-

short thick steel (Length not exceeding 80 cm.) small piece of steel. (Length not exceeding 50 cm.) steel screws, thin steel (Length not exceeding 50 cm.) sling wire steel coil penny-shaped steel steel rod , steel knife rod cast tiny steel , cast large steel steel machine, 1 inch steel bar (Length 1 m. or more) steel rod 6 length, steel rod 5 length car steel

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14 Plastic

Figure 2.2 : Plastic

-

pipe, electric devices other kids of plastic except plastic bags

Bottle

Figure 2.3 : Bottle

-

glass bottles color glass bottles plastic bottles opaque bottles

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15 Paper

Figure 2.4 : Paper

-

cardboard brown box colored paper, shoes box book paper paper digests art paper bag cement paper black and white paper notebook paper computer paper news paper box milk paper paper digests to coat it one-sided

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16 Metal

Figure 2.5 : Metal

-

can aluminum, thick aluminum, pump aluminum, pliston big aluminum, wheel aluminum, fryimg pan electricity aluminum, buttock frying pan electricity aluminum, frying pan aluminum, aluminum, fire aluminum, alloy aluminum, some clean aluminum, boiler aluminum, background edge new aluminum, can insecticide aluminum, lid aluminum, bamboo curtain aluminum, mosquito wire screen aluminum, large strip copper, brass thick Brass thin , boiler brass Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand

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17 Corporate Level
Sri-Cha-Learn shop is a shop that purchases waste from garbage collectors and small waste shops to the processing of recycling in the factory. The appropriate strategy for SriCha-Learn shop is intensive strategies in the market penetration level (present product in present market) by using attractive points to persuade the customer. 1. Offering the higher price in the beginning period like boom market to persuade the customer interested in the shop after that the shop will adjust into the regular price. 2. Weighing machine is guaranteed the standard by Ministry of Commerce. Getting the customer royalty and stand in the national standard. 3. Serving the best service to customer such as delivery. If the customers cannot carry the waste to the shop, the shop will offer delivery service for them with the fewer fees.

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18 Business Level Sri-Cha-Learn shop is a shop that has highly competition environment and increase continuously. It affects directly to our shop because the customer will do the business with the shop that give the highest return. The way to stand in the high competition environment is making the Differentiation Strategy as follow: Price differentiation: The environment of Sri-Cha-Learn shop has high competition. The competitors tend to give the customer in the similar prices, give in the same price or give the highest price from competitors to attract customers. SriCha-Learn shop will give the price that meet the customer satisfaction such as give the highest price. Service differentiation: Giving the highest price to the customer is not enough. We have to make the customer’s loyalty by creating the impression to the customer by services such as service satisfaction over quickly, clean and good workplace or pay money on time Different services will make the great opportunity. Transportation differentiation: We provide the tracks for deliver the waste to customer’s factory (more than 15 tons) Technology differentiation: we provide the high technology for separate type waste and deliver waste to recycle factory or our customer. We may also use computer to help in organization processing.

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19 Functional Level In Functional level, Sri-Cha-Learn Recycling Store can be divided into 2 parts, marketing and financial and sales. For the marketing service will concern about customer analysis to know who are our customers and tell the reason why they will come to our store. In the part of financial and sales will tell about how to manage the money of our store and strategies that are used. The details of each strategy as follow:

Marketing The advantage of marketing to business is to promote the business to the

customer for sale goods and service, build strong relationship in order to capture value from customers in return etc. The good marketing should be considered the customer by which individual or group. The most importance of the good marketing is to respond customers’ needs though creating the promotions or any strategies to attract to be attractive. Marketing Strategies that Sri-Cha-Learn Recycling Store use as follow:

Customer Analysis Before opening the business, we have to specify the expect customer of our business at the beginning. Sri-Cha-Learn Recycling Store can divide customer in 2 groups by first the people who come to sell wastes to the company such as scavenger or small waste recycle store. Second, the recycle factories come to buy the recyclable waste from the company. Sri-Cha-Learn is located Maekorn sub district where large area for collecting inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in front of the company, the customer will come and see the company easily. In the high competition environment, the company should do the business with service mind. The company has to make the royalty and reliable to the customer.

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20 Marketing mix Marketing mix is the tools to assist the company in pursuing the customer to meet company objectives. Before offer anything to customer, the company has to be carefully managed and controlled. The most importance thing is the company has to define the target group and meet their need. The marketing mix is apart of the organizations planning process and consists of analyzing of 4Ps (product, price, place and promotion)

Sales products

Inviting the customers (scavenger or small waste recycle store) to sells products to company. To let’s customers know that company can give the highest price for each product. For recycle factories, company will offer products (separate type waste) that our company has a wide variety of product.

Financial and Sales In investment decision, company will loan the money from bank and

installment the principal and interest. The company will choose fixed rate loan because interest is not stable. In finance, company will compare the cost of purchasing goods with cash for purchase the product at the low cost. And, Sell products by cash to maintain the liquidity of the shop. And prevent the problem of collect dept.

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21

Chapter 3

General Environment Analysis

Political The government policy has the direct effect to the company. According to the campaign of Department of Environment Quality Promotion (DEQP), Ministry of Natural Resource and Environment has signed cooperation agreements in the campaign, “Project 45 on plastic bag reduction and power reduction of global warming". The cooperation received from government agencies and private and shopping malls, supermarket, convenience and vegetable market and 22 shopping centers and other government agencies will record the amount of plastic bags used throughout the project period of 45 days from April 22 is Earth Day to world environment day. This campaign tries to tell the people to reduce using plastic and tell them that plastic can be recycled. For example Low Density Polyethylene, (LDPE) LDPE is the soft plastic that good flexibility and clear. It’s suit for wrap the food, bakery or pack cool food. LDPE can be recycled to be black bag for garbage, Carrying bag or trash.

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22 Economy

In the economy down, but it rises the profit of the waste recycling business. Incredible, the value of waste recycling business has high to 4 billion baht from the advanced technology of recycling waste building. The famous waste recycling business is Wongpanit, said that whether it is business, "waste disposal" or "recycled garbage" will be the business that grow fast and stability in next 10 years. From the trend of environmental in limit of quantity of natural resources, the world trend of reuse or recycle begin in developed countries and now it’s coming to Thailand. When resources are limited, the waste recycling businesses would become a future business because people will freight for purchasing of raw materials to produce products to response the demand and supply of customer. In the future the product that related to paper, plastic bottles, glass, copper aluminum, etc., will be the high value product.

Currently, there is a new job that they will be the middlemen for separation waste before sent to waste shop. This store will buy and sell in return to reuse for the recycling process. However, before doing business the small entrepreneur must have place for inventory and capital for purchasing. In this 1-2 years, waste business become the famous business that foreign pay attention and want to invest.

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23 Social and Environment

The one interesting project like “Waste Separation project” of Department of Environment Quality Promotion (DEQP), Ministry of Natural Resource and Environment is the project that motivates people to separate type of waste before through away which is a large problem in society. In Bangkok has reached 8.5 million ton of landfill per day. If we average, one person will cause the volume of waste from 0.8 to 1 kg per day. This campaign, everyone can help together for separation waste. It can occur in homes, offices and other places in the community. It supports with the company’s project that try to tell the people that the waste in their hand can be recycle and they are one of the millions people that save the earth.

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24 Technology

These days, advances in science and technology, and, invention development facilities support our lives tremendously well. Technology is an addition that is now fundamental to each of our lives, the creation of superb quality residential standards and the production of other goods and services meeting the needs of more and more people are just two examples to mention. Technological manufacturing systems produce a number of cheaper and better quality products and also vastly improve the speed of production. Technology makes it easy and convenient to communicate, transporting connections between the world's populations to wherever a contact may be to receive information at any time. The development of technology makes these life changes are builds a better quality of life - improves conditions of urban society in the development of the telecommunication systems to provide easier communication, which is then applied to the facilities within the home, office and personal technological gadgets. In Thailand has more amounts of wastes, some waste can be recycling but some waste cannot, that result in waste disposal in many communities. However many type of waste can be recycle and reuse, so enabling to be effort to recycling wastes. There is a campaign to sort waste before disposal to bring. As an example of PCB recycle technology: In Thailand, there are many manufacturing import electrical and electronic equipment. The electrical equipment with components such as IC circuits and wiring more, some of the equipment can be recycled and some can not be recycled to make leaving electronic equipment and waste community. However, electronic circuits, metallic key to sales such as gold, copper, lead, etc. Allowing the circuit to try to recycle metals separation, important to be left out before and reduce the problem of environmental contamination from toxic substances circuit of one another. Pollution Control Department has surveyed the amount of electronic products remains that occur; the electronic wastes most of the exploration potential in recycling (To sell in order to take advantage) but there are more electronic wastes that expected to be included with garbage disposal general. There are many PCB recycling technology in Thailand. Unicopper Trade Co., LTD discovered and developed the recycling system electronic circuits; it consists of metal separation to bring metal to be molded Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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25 material. Plastic left from the copy, basic metals separation are sent to remove the cement plant and in the future may bring scrap plastic, remaining isolated from the brick made to block construction. The example of innovation for recycling paper by Mr.Paijitr Sangchai, managing director of Flex Research Group Co., Ltd. The award-winning National innovation 2552, said about the creating innovative ideas with the discovery and study of enzymes for use in recycling paper follows: We will need to buy new paper pulp. We called the first membrane is made from wood taken to cooking to remove the ground and then made a pulp and then bleached out to a white paper. If it is not bleached brown paper, we purchased the membrane and enter into paper manufacturing process. First we called the new paper, enough time to go through the paper first, then, also valuable in his address like the packaging. Corrugated carton can be recycled back to the application, or photocopying paper, paper type. These were brought back to new. From scrap paper merchants, he would then collect a mass compressing large. Then sent to the plant sale paper, paper they are already required by the market because it can be recycled to 100% but it will be another type of paper that this can not be recycled with normal methods, such as paper that is combined with other materials or plastic stuck. Paper plant is not popular to buy. Required quality of paper management processes to acquire these, for example; photocopying paper. He was then taken with the ink color black stuck. He took the time to spin a new membrane. The black ink will not eliminate all. It must be in the process of bringing out ink. Star from the research about enzyme before, it is similar to gastric juice in the mouths of people we have enzyme, we will see that the paper it is organic substances can be digestible, We have developed the first end-to end when approximately 3 years ago and then developed a more oblique Science Series. Series one can be taken to fill in the paper recycling process making power need to be ground down to the paper. Typically require a machine to remove the paper split. Science is the small end it split easily. Suppose we measure the energy in units of 1 ton of paper, power may need approximately 300 kilowatts per hour. Is approximately 900 baht if the end-end into the remaining approximately 300 baht is just grinding it light enough, No ground was hard. For example, 1 ton of papers end to end-around and then 100 baht. Therefore, approximately 400 baht to 900 baht, while the same. Enzyme life source of the 3 Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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26 mushrooms and fungi are bacteria, sounds and a little frightening, but do not fear because we review each drug. Antibiotics do this he made from fungi. Destination Science, or drug clients, but we eat it and then secure. However, the default could be dangerous. Our start is extracted from the mushroom before the end come Sciences. Suppose we make the Series a grinding paper in Science, requires clients to take about 14 species combination is a single enzyme. We have to extract themselves from the CSA end 14 of the latter, we find that the only end-end sales. We can choose to buy. Then we mixed the formula, the formula will be our single, the way we have been a groom's technology business incubator units, Thailand Science Park, a unit of NSTDA. Series two clean the recycled paper, for example, photocopying paper, A4 paper. Ink installation is quite a hard fall. Series two of us will remove ink off. The white paper is made up. We removable dirty spot, our lap are located at Building M. Tech. Center of the National Metal and Materials Technology, located in Science Park. We start from a recipient to seed. They allow us to set up the company. It is like a plantation in Thailand's first private research. This paper because they do not want their paper factory. Plastic plant is not needed. Who owns the scrap paper they would find the removal thereof. How the most to him do is to keep burning. It caused pollution. Or more of the investment is to hire someone to remove a deep-living, which is pollution. We all do this project in by the support of the Science Park. The incubator unit, we can do innovative technology that can prevent the paper from plastic. He sent the program to enter the country when Malaysia about May last. We also award back. When the Thailand about last September. Would send this contest, we have another award runner No. 1. Our aim is that we would like manufacturers to recycle all you business. I was not that I will aim to produce plant pulp sales. The only people who do know a single person. I do not want to use the word rich people only. But I want to be working well, a person to research to encourage the recycling business as major provinces by industry sources. In order to keep the garbage disposal to remove the polluting burn it down to. The operators have been the result of this good word I use both the money box.

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27

Competition Analysis (3C Analysis)

Competitor Analysis

From the information of Establishment of Demonstrative Environmental Technology Center report that there are 28 waste stores in Chiang Rai included 7 stores registered in Muang district such as such as ChaingRaiKongKao, Wongpanit, Thairung, ChaingRaiWera and SinThai2. After the company did survey about possible competitors, we found that Wongpanit recycling Co., Ltd, Witaya Intertrade Co., Ltd, Rux Partnership Co., Ltd, S.K. Recycle Co., Ltd and Sarathorn Metal Co., Ltd are the main competitors of our business. The company analyzed the main competitors in Thailand for gathering their information and competitive edge. Those competitors will influence to price trending and market situations. The company would like to hold the higher advantage competitive and also use their information to create the differentiation strategies.

Wongpanit recycling Co., Ltd

A business operation or commercial waste for recycling called “Waste Selling”. The company called “Waste disposal for recycle Wongpanit Limited”, type of business is trade residues from household materials such as plastic, bottles, paper, metal, glass, etc. The recycling business trading since 1947 until now, operate by Dr.Somthai Wongcharoen has seen the value of a public waste disposal together with unknown values then initiate to do public relation into many communities, municipalities, private agencies, government agencies, factory both in Pisanulok (The first branch) and other provinces including Bangkok. The Wongpanit commercial network was joined to meeting for established waste recycling center and find measures to solve the garbage filled the city problem. They established the learning canter about how to dispose the wastes in commercial The concept of converting waste to resources has come from an over 30 years of experience on waste management and the disagreement with the old waste disposal

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28 culture which emphasizes on waste incineration and landfill that normally cost an enormous budget and cause many negative impacts to our environment. On the other hand, the concept of converting waste to resources changes the idea of “disposal” to “recovery”, from “destroying” to “creating benefit” It is a sound solution beginning from inventing a new strategy of “waste is gold” to persuade people to participate in waste sorting at the source-their homes, which helps reducing waste effectively and generate extra income as a reward. Moreover, this method emphasizes on public relation programs to educate people in every households of all communities to be able to separate more types of waste combines with creating activities which is another way to instill awareness and responsibility to society as a whole.

Witaya Intertrade Co., Ltd

The company has experiences in manufacturing plastic recycling, selection, procurement the A grade plastic (new tablets) both blow grade and injection grade. They can provide any kinds of plastic which appropriate to the needs of most customers. They purchased any types of plastic from customers around Samutprakarn area.

Rux Partnership Co., Ltd

The business is established since 1998 until now, operating business about buying bits of plastic from local factory around Ratchaburi. Then sell the plastic aboard international. In 2005, they expand business to recycling any type of business and the objective is to reduce plastic waste. They expand business to produce PET (polyettaline), Plastic grind machine and Recycle plastic machine. They have to operate professional management team which marketing and production to give instruction to interested network. The company’s vision is to participation in social Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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29 assistance by reduce pollution, quantities of wastes and protect environment along with response the customer needs which efficiency.

S.K. Recycle Co., Ltd

S.K Recycle company is a leader of purchased aluminums scrap, coppers scrap, stainless scrap, steels scrap, etc. The company located in Nonthaburi. They purchased materials from customers then recycle which melt with heat to reuse for protect environment and send to aboard and domestic.

Sarathorn Metal Co., Ltd

The business operates by Mr.Sarawut Sitaposa, Ms.Sasithorn Khumthong and team. They established the company and purchased materials from customer by divided in 6 types as steel, plastic, glass, paper, and other. The business is growth continued with modern technology

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30

Customer Analysis

Before opening the business, we have to specify the expect customer of our business at the beginning. Sri-Cha-Learn Recycling Company can divide customer in 2 groups by 1. The people who come to sell wastes to the company such as scavenger or small waste recycle store. 2. The recycle factories that come to buy the recyclable waste from the company. Scavenger or small waste recycle store. The will come to our store and transport the waste to their factory by themselves or they may ask us to deliver to their factory. Sri-Cha-Learn is located Maekorn sub district where large area for collecting inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in front of the company, the customer will come and see the company easily. The good location of our company will attract the customer with the convenience transportation, clean workplace, and good environment. In the high competition environment, the company should do the business with service mind. The company has to make the royalty and reliable to the customer such as when the customers come to the company, they will get the service in a few minutes.

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Competitive Analysis

We are study about competitive waste selling in Chiang Rai by using five force to analyze the possibilities of our business and other factor for competitive with competitors.

1. Rivalry among Competitors

According to the behavior of customers, they will choose to go to the shop near their house. Therefore the rivalry among competitors depends on area. The company is located in Mae Kron sub district which has the main competitors such as DD Store and ChaingRaiKongKao. The company might create the new strategies to hold advantage competitive.

2. Bargaining Power of Suppliers

The company will use the joint Venter strategy to corporate with the others recycling stores in ChiangRai to set the ceiling price and floor price. However, if some companies want to offer the higher price than the agreement, it will be their own lose.

3. Bargaining Power of Customers

The company will do the agreement with customers (factories), which set in the standard price in long term. The company cannot set higher price and the customer cannot do the business with the other in the agreement period. The advantage for doing agreement is to reduce risk in both sides.

4. Threat of Substitute Products

According to the kind of this business, the company has less substitute products and services because the company’s products depend on the quantity Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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32 consumption. There is no any company to create the new substitute product in this product line

5. Threat of New Entrance The company needs to build the Brand Loyalty for supplier and customers and Access to distribution in the company to reduce the Threat of New Entrants in this business. This business requires the high capital so it will hard for New Entrants to come in this business also.

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33

Marketing Mix Strategy
Marketing mix

Marketing mix is the tools to assist the company in pursuing the customer to meet company objectives. Before offer anything to customer, the company has to be carefully managed and controlled. The most importance thing is the company has to define the target group and meet their need. The marketing mix is apart of the organizations planning process and consists of analyzing of 4Ps:

Figure 3.1 : Product

1. Product: The main product of the company is recyclable products. The company will buy waste from scavenger or small waste recycle store and sell them to the factory to processing of recycle.

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34

Figure 3.2 : Price

2. Price: It will depend on the price in the market in Bangkok but the company may adjust to suitable for Chiang Rai market.

Figure 3.3 : Place

3. Place. The company is located in Maekorn sub district where has the large area for collecting inventories and easy for transportation. The good location of our store will attract the customer to come to store with the convenience transportation, clean workplace, and good environment.

4. Promotion: The Company will use the advertising on radio, poster and flyer to promote the company because the target group of the company is the people in middle class or poor people. The radio and flyer can access to the target customer of the company easily. Moreover, words of mouth will be the good way also. Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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35

Conclusion
Sri-Cha-Learn Recycling Company has the main job of buying and selling recycle waste to the process of recycling. The main products of the company are Steel, plastic, bottle, paper and metal. The company can separate the customer in 2 groups. The first is the people who come to sell wastes to the company such as scavenger or small waste recycle store and second, the recycle factories that come to buy the recyclable waste from the company to the process of recycling. Recycling waste business can generate the good income to entrepreneurs so there are a lot of competitors. In ChiangRai, Sri-Cha-Learn Recycling Company has to face with 28 waste stores such as ChaingRaiKongKao, Wongpanit, Thairung, ChaingRaiWera and SinThai2. In the high competition, the company uses the strategies that different from competitor such as give the higher price, service with mind and transportation service. Moreover, the company promotes the company by radio because most of target customer listen the radio in dairy and to save cost of advertisements. The company has to create new strategies all time to persuade the customer to do the business with us. In addition, the company gets the profit from the campaign of the government such as the campaign of Department of Environment Quality Promotion (DEQP), Ministry of Natural Resource and Environment has signed cooperation agreements in the campaign that reduce using plastic bag and try to use the recycle product. Not only the good marketing strategies but also the company is located in the good area for business. Sri-Cha-Learn Recycling Company is located Maekorn where large location it can collect more inventory and easy to transportation. To support with company’s vision and mission, the company will use the high technology to response the customer needs and easy for management.

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36

Sale Forecast in Year 1 Quantity of Waste (Ton) Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 0.700 Feb 0.750 0.650 0.475 0.775 0.183 2.833 Mar 0.800 0.750 0.550 0.850 0.189 3.139 Apr 0.850 0.850 0.600 0.875 0.195 3.370 May 0.890 0.950 0.750 1.000 0.198 3.788 June 0.900 0.975 0.750 1.050 0.220 3.895 July 0.950 1.000 0.755 1.100 0.275 4.080 Aug 0.850 0.975 0.800 0.975 0.197 3.797 Sep 0.975 1.050 0.900 1.400 0.300 4.625 Oct 1.000 1.200 0.950 1.500 0.420 5.070 Nov 1.100 1.290 1.000 1.650 0.475 5.515 Dec 1.200 1.350 1.075 2.000 0.520 6.145 Total 10.965 11.640 9.055 13.925 3.351 48.936

13,000 0.600 10,000 0.450 7,200 0.750

30,000 0.180 67,200 2.680

Profit Estimation in Year 1 Sales/Months Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 4,900 Feb 5,250 8,450 4,750 5,580 5,475 190,344 Mar 5,600 9,750 5,500 6,120 5,670 210,941 Apr 5,950 11,050 6,000 6,300 5,850 226,464 May 6,230 12,350 7,500 7,200 5,925 254,520 June 6,300 12,675 7,500 7,560 6,600 261,744 July 6,650 13,000 7,550 7,920 8,250 274,176 Aug 5,950 12,675 8,000 7,020 5,910 255,158 Sep 7,350 11,700 14,000 2,160 138,750 173,960 Oct 7,000 15,600 9,500 10,800 12,600 340,704 Nov 7,700 16,770 10,000 11,880 14,250 370,608 Dec 8,400 17,550 10,750 14,400 15,600 412,944 Total 77,280 149,370 95,550 92,340 230,280 3,151,659

13,000 7,800 10,000 4,500 7,000 5,400

30,000 5,400 67,000 180,096

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Sale Forecast in Year 2 Quantity of Waste (Ton) Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 0.840 Feb 0.900 0.780 0.570 0.930 0.219 3.399 Mar 0.960 0.900 0.660 1.020 0.227 3.767 Apr 1.020 1.020 0.720 1.050 0.234 4.044 May 1.068 1.140 0.900 1.200 0.237 4.545 June 1.080 1.170 0.900 1.260 0.264 4.674 July 1.140 1.200 0.906 1.320 0.330 4.896 Aug 1.020 1.170 0.960 1.170 0.236 4.556 Sep 1.170 1.260 1.080 1.680 0.360 5.550 Oct 1.200 1.440 1.140 1.800 0.504 6.084 Nov 1.320 1.548 1.200 1.980 0.570 6.618 Dec 1.440 1.620 1.290 2.400 0.624 7.374 Total 13.158 13.968 10.866 16.710 4.021 58.723

13,000 0.720 10,000 0.540 7,200 0.900

30,000 0.216 67,200 3.216

Profit Estimation in Year 2 Sales/Months Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 5,880 Feb 6,300 10,140 5,700 6,696 6,570 228,413 Mar 6,720 11,700 6,600 7,344 6,804 253,129 Apr 7,140 13,260 7,200 7,560 7,020 271,757 May 7,476 14,820 9,000 8,640 7,110 305,424 June 7,560 15,210 9,000 9,072 7,920 314,093 July 7,980 15,600 9,060 9,504 9,900 329,011 Aug 7,140 15,210 9,600 8,424 7,092 306,190 Sep 8,190 16,380 10,800 12,096 10,800 372,960 Oct 8,400 18,720 11,400 12,960 15,120 408,845 Nov 9,240 20,124 12,000 14,256 17,100 444,730 Dec 10,080 21,060 12,900 17,280 18,720 495,533 Total 92,106 181,584 108,660 120,312 120,636 3,946,199

13,000 9,360 10,000 5,400 7,000 6,480

30,000 6,480 67,000 216,115

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38

Sale Forecast in Year 3 Quantity of Waste (Ton) Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 0.875 Feb 0.938 0.813 0.594 0.969 0.228 3.541 Mar 1.000 0.938 0.688 1.063 0.236 3.924 Apr 1.063 1.063 0.750 1.094 0.244 4.213 May 1.113 1.188 0.938 1.250 0.247 4.734 June 1.125 1.219 0.938 1.313 0.275 4.869 July 1.188 1.250 0.944 1.375 0.344 5.100 Aug 1.063 1.219 1.000 1.219 0.246 4.746 Sep 1.219 1.313 1.125 1.750 0.375 5.781 Oct 1.250 1.500 1.188 1.875 0.525 6.338 Nov 1.375 1.613 1.250 2.063 0.594 6.894 Dec 1.500 1.688 1.344 2.500 0.650 7.681 Total 13.706 14.550 11.319 17.406 4.189 61.170

13,000 0.750 10,000 0.563 7,200 0.938

30,000 0.225 67,200 3.350

Profit Estimation in Year 3 Sales/Months Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 6,125 Feb 6,563 10,563 5,938 6,975 6,844 237,930 Mar 7,000 12,188 6,875 7,650 7,088 263,676 Apr 7,438 13,813 7,500 7,875 7,313 283,080 May 7,788 15,438 9,375 9,000 7,406 318,150 June 7,875 15,844 9,375 9,450 8,250 327,180 July 8,313 16,250 9,438 9,900 10,313 342,720 Aug 7,438 15,844 10,000 8,775 7,388 318,948 Sep 8,531 17,063 11,250 12,600 11,250 388,500 Oct 8,750 19,500 11,875 13,500 15,750 425,880 Nov 9,625 20,963 12,500 14,850 17,813 463,260 Dec 10,500 21,938 13,438 18,000 19,500 516,180 Total 95,944 189,150 113,188 125,325 125,663 4,110,624

13,000 9,750 10,000 5,625 7,000 6,750

30,000 6,750 67,000 225,120

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39

Sale Forecast in Year 4 Quantity of Waste (Ton) Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 0.889 Feb 0.953 0.826 0.603 0.984 0.232 3.597 Mar 1.016 0.953 0.699 1.080 0.240 3.987 Apr 1.080 1.080 0.762 1.111 0.248 4.280 May 1.130 1.207 0.953 1.270 0.251 4.810 June 1.143 1.238 0.953 1.334 0.279 4.947 July 1.207 1.270 0.959 1.397 0.349 5.182 Aug 1.080 1.238 1.016 1.238 0.250 4.822 Sep 1.238 1.334 1.143 1.778 0.381 5.874 Oct 1.270 1.524 1.207 1.905 0.533 6.439 Nov 1.397 1.638 1.270 2.096 0.603 7.004 Dec 1.524 1.715 1.365 2.540 0.660 7.804 Total 13.926 14.783 11.500 17.685 4.256 62.149

13,000 0.762 10,000 0.572 7,200 0.953

30,000 0.229 67,200 3.404

Profit Estimation in Year 4 Sales/Months Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 6,223 Feb 6,668 10,732 6,033 7,087 6,953 241,737 Mar 7,112 12,383 6,985 7,772 7,201 267,895 Apr 7,557 14,034 7,620 8,001 7,430 287,609 May 7,912 15,685 9,525 9,144 7,525 323,240 June 8,001 16,097 9,525 9,601 8,382 332,415 July 8,446 16,510 9,589 10,058 10,478 348,204 Aug 7,557 16,097 10,160 8,915 7,506 324,051 Sep 8,668 17,336 11,430 12,802 11,430 394,716 Oct 8,890 19,812 12,065 13,716 16,002 432,694 Nov 9,779 21,298 12,700 15,088 18,098 470,672 Dec 10,668 22,289 13,653 18,288 19,812 524,439 Total 97,479 192,176 114,999 127,330 127,673 4,176,394

13,000 9,906 10,000 5,715 7,000 6,858

30,000 6,858 67,000 228,722

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40

Profit Estimation in Year 5 Quantity of Waste (Ton) Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 0.910 Feb 0.975 0.845 0.618 1.008 0.237 3.682 Mar 1.040 0.975 0.715 1.105 0.246 4.081 Apr 1.105 1.105 0.780 1.138 0.254 4.381 May 1.157 1.235 0.975 1.300 0.257 4.924 June 1.170 1.268 0.975 1.365 0.286 5.064 July 1.235 1.300 0.982 1.430 0.358 5.304 Aug 1.105 1.268 1.040 1.268 0.256 4.936 Sep 1.268 1.365 1.170 1.820 0.390 6.013 Oct 1.300 1.560 1.235 1.950 0.546 6.591 Nov 1.430 1.677 1.300 2.145 0.618 7.170 Dec 1.560 1.755 1.398 2.600 0.676 7.989 Total 14.255 15.132 11.772 18.103 4.356 63.617

13,000 0.780 10,000 0.585 7,200 0.975

30,000 0.234 67,200 3.484

Profit Estimation in Year 5 Sales/Months Product Steel Plastic Bottle Paper Metal Total Price 7,000 Jan 6,370 Feb 6,825 10,985 6,175 7,254 7,118 247,447 Mar 7,280 12,675 7,150 7,956 7,371 274,223 Apr 7,735 14,365 7,800 8,190 7,605 294,403 May 8,099 16,055 9,750 9,360 7,703 330,876 June 8,190 16,478 9,750 9,828 8,580 340,267 July 8,645 16,900 9,815 10,296 10,725 356,429 Aug 7,735 16,478 10,400 9,126 7,683 331,706 Sep 8,873 17,745 11,700 13,104 11,700 404,040 Oct 9,100 20,280 12,350 14,040 16,380 442,915 Nov 10,010 21,801 13,000 15,444 18,525 481,790 Dec 10,920 22,815 13,975 18,720 20,280 536,827 Total 99,782 196,716 117,715 130,338 130,689 4,275,049

13,000 10,140 10,000 5,850 7,000 7,020

30,000 7,020 67,000 234,125

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41

CHAPTER 4 Technical Feasibility Study

Production and Operations Analysis
Product Characteristics Waste is directly linked to human development, both technologically and socially. The composition of different wastes has varied over time and location, with industrial development and innovation being directly linked to waste materials. Waste management is the collection, transport, processing, recycling or disposal, and monitoring of waste materials. The term usually relates to materials produced by human activity, and is generally undertaken to reduce their effect on health, the environment or aesthetics. Waste management is also carried out to recover resources from it. Waste management can involve solid, liquid, gaseous or radioactive substances, with different methods and fields of expertise for each. Waste management practices differ for developed and developing nations, for urban and rural areas, and for residential and industrial producers. Management for non-hazardous residential and institutional waste in metropolitan areas is usually the responsibility of local government authorities, while management for non-hazardous commercial and industrial waste is usually the responsibility of the generator.

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Specification, Feathers, Dimension, Life Time, etc.

Type of product Steel

Product - short thick steel (Length not exceeding 80 cm.) - small piece of steel. (Length not exceeding 50 cm.) - steel screws, thin steel (Length not exceeding 50 cm.) - sling wire - steel coil - penny-shaped steel -steel rod -steel knife rod -cast tiny steel -cast large steel -steel machine -1 inch steel bar (Length 1 m. or more) -steel rod 6 length -steel rod 5 length -car steel

Plastic

-pipe -electric devices -Any kids of plastic except plastic bags

Bottle

-glass bottles -color glass bottles -plastic bottles -opaque bottles

Paper

-cardboard brown box -colored paper, shoes box -book paper -paper digests -art paper -bag cement paper -black and white paper Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand

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43 -notebook paper -computer paper -news paper -box milk paper -paper digests to coat it one-sided

Metal

can aluminum thick aluminum pump aluminum pliston big aluminum wheel aluminum fryimg pan electricity aluminum buttock frying pan electricity aluminum frying pan aluminum aluminum fire aluminum alloy aluminum some clean aluminum boiler aluminum background edge new aluminum can insecticide aluminum lid aluminum bamboo curtain aluminum mosquito wire screen aluminum large strip copper brass thick Brass thin boiler brass

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44 Production/Services Process

1. Procurement & Purchasing

Purchasing processing is the first step and linked to customers directly. So, the company has to offer the best service to them as follow: - Customer Registration The company will keep information of customer to gather in right information and serve the right service to customer. Moreover, it can prevent the company from purchasing the stolen goods. - Employee will separate type of products. Every employee will have the specific carrier. The good skill of separating type of waste is very importance because if they separate in the wrong, the company may lose money.

- Compute the weight and price. The high technology is to be use in the company to serve the good service to the customer. Moreover, the company will get the royalty and reliable from customer because the company serves them with the fairness.

2. Products Separation

The company separates the type of product, and then put into each zone. There are five main zones as follow: Steel, Plastic, Bottle, Paper and Metal. Zone 1 – Paper Zone 2 – Plastic Zone 3 – Metal Zone 4 – Bottle Zone 5 – Steel

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45 3. Recycling processing First step required for recycling is collecting recyclable materials from communities. Today many major cities and larger communities offer a curbside pick up service for recyclable materials. Families, who recycle items such as paper, bottles and cans, place the items in recycling collection bins. These bins usually have the recycling symbol on them. This is one of the most important steps for recycling because if people do not separate their recyclable materials from their trash then the materials will not be recycled. Instead they will be sent to the landfill with other trash. Apart from the items you may recycle at home, many other things such as old tires, computers, mattresses, cars and more are recycled for parts and materials. The second step involves processing the recyclable materials. This includes sorting the materials into groups, cleaning them and getting them ready to be sold to manufacturers who will turn the materials into new products. Manufacturing is the third step in the recycling process. Today many products are made out of either total or partial post consumer (recycled) materials. Many items you may see every day are made from recycled materials. Newspapers, paper towels, office paper, plastic bottles and aluminum cans are not only made of recycled materials, but they can also be recycled again. The last step, but certainly not the least, involves the purchasing of recycled products. When consumers purchase products that have been made with post consumer material the recycling process has been completed and can then be repeated.

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46 Location Sri-Cha-Learn is located Maekorn sub district where large area for collecting inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in front of the company, the customer will come and see the company easily.

Facility Layout

Figure 4.1 : Inside the company

Inside the Company

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47

Figure 4.2 : Outside the company

Figure 4.3 : Outside the company

Outside the Company
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48

Industrial Cost
No. 1. List Groundwork 1.1 Preparation and layout area 1.2 Hold 1.3 Concrete (Flow) 210 KSC. Landscape (Pile with sand) Reinforced concrete 180 KSC. 3.1 Concrete 3.2 Steel added - 6 MM, SR 24 - 9 MM, SR 24 - DB 12 MM SD 30 - DB 12 MM SD 30 3.3 Steel tie wire 3.4 Timber Mon brick wall construction Steel roof frame (100x50x20x32) Roof 6.1 Curved roof ridge 6.2 Close lid open 6.3 Bathroom tile roof above 6.4 Roof holder 6.5 Wooden eaves 6.6 Wood closed eaves Ceiling (Smooth Gypsum) List Tiled floor 9.1 Tiled Unit Quantity 1 10 3 40 80 5 45 17 52 800 58 59 20 57 15 2 35 100 20 20 26 Quantity 22 6 Material costs @ Price Labor cost @ Price 3000 200 750 200 200 250 15 15 25 3000 2000 4500 8000 16000 12500 675 255 1300 Total 3000 2000 14580 17600 139200 9650 2925 1819 10868 30400 14500 10915 7400 4275 1125 130 2800 1750 3000 2600 5460 Total 7260 1980

2. 3.

4. 5. 6.

7. No. 8.

hold cubic cubic Cubic Cubic Cubic Line Line Line Line Square meters Meter Square meters Meter Square meters Item Item Item Set Meter Meter Square meters Unit Square meters

1680 240 1540 1680 50 92 184

10080 9600 123200 8400 2250 1564 9568

1900 30400 250 14500 120 7080 290 5800 60 3420 60 900 50 100 65 2275 2.5 250 120 2400 100 2000 130 3380 Material costs 250 5500 250 1500

65 80 15 15 15 15 15 30 30 80

3835 1600 855 225 30 525 1500 600 600 2080 Labor cost 80 1760 80 480

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49 9. 10. Wall construction Door swing D.1 Doors D.2 Windows W. 1 Bathroom 11.1 water close 11.2 Basin 11.3 Toilet Shower 11.4 Toilet Gary Rg plot 11.5 Long neck faucet 11.6 A package tube with pond equipment pond Gypsum Electricity with equipment Truck digital weighting machine Digital weighting machine Other working and painting Total Square meters 16 3 2 2 2 2 2 2 2 1 250 @ 8500 1500 2600 3500 950 200 100 200 5000 4000 Price 255000 3000 5200 80 @ 200 200 200 1280 Price 400 400 400 7000 1900 400 200 400 5000 9500 Machine Set 28720 5280 25700 3400 5600 7000 1900 400 200 400 5000 9500 200000 20000 28720 673,337

Set

11.

Set Set Set Item Item Set

12. 13. 14 15.

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50

Machine/Tools/ Equipments

Figure 4.4 : Hydrolic Nck HYDROLIC PRESS NCK

Figure 4.5 : Scale-VW Platform SCALE-VW PLATFORM

Figure 4.6 : Truck TRUCK Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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51

Figure 4.7 : Truck Digital Weighting Machine TRUCK DIGITAL WEIGHTING MACHINE

Figure 4.8 : Metal Cutter METAL CUTTER

Figure 4.9 : Forklift FORKLIFT

Figure 4.10 : Tractor TRACTOR Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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52 Logistics Management

Logistic Management is used in the company to manage the transportation inside and outside the company to make everything go fast and correctly. Logistics Management is a part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Logistic activities

Customer Service

The company has delivery service to customer and supplier. Moreover, the company will emphasize to take care of customers with smile to make the loyalty customer. The company stand in “Best service with smile” Because the activities that the company satisfies and impresses for customer. This is the most important thing to persuade them and can affect to the others step in logistic activities.

Return goods

If the company delivers the wrong products or there are any problems about the product, the company will respond and welcome to return goods suddenly.

Location Planning

Sri-Cha-Learn is located Maekorn sub district where large area for collecting inventories and easy for transportation.

Transport & Traffic - Outbound logistics. It is included in procurement & purchasing processing. - Inbound logistics. The company has delivery service to transport the transformed product to factory by a fewer fee. Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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53 Warehousing & Inventory Control There are five zones to keep each type of products as follow: Zone 1 – Paper Zone 2 – Plastic Zone 3 – Metal Zone 4 – Bottle Zone 5 – Steel

Material Handling and Transportation

TRUCK

TRACTOR

FORKLIFT

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54 Cost of Investment -Pre-Operating Cost Pre-operating expense 1 2 3 4 Registration Fee Electronics register expense Water supply register expense (2 Inch) Telephone register expense Total Price 9,400 4,450 4,100 3,750 21,700

- Investment Cost
Land Land [4,200 square meters] size 60*70 Buildings Equipments List Computer Phone + Fax Machine Printer Refrigerator- Sanyo RM-952, 5.2 Q Quantity 2 2 1 1 1 1 3 3 Price 19,500 8,900 1,563 5,000 7,500 21,900 1,500 1,500 4,000,000

29-inch television- LG Super Slim Flat TV
Air conditioning – 18221 BTU. Fan Calculator Furniture Free Living Desk Chair Cabinet documents Versatile table TV rack Computer table Interior settings Total

1 3 6 2 2 1 2 1

9,500 2,400 3,500 1,600 1,000 400 400 10,000 96,163

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55 Tools List Metal cutter Filler piece versatile machine Scale - VW-Platform Weight machine setting Forklift Truck - Mitsubishi FN527M Excavators scoop - MF750 Total Quantity 1 1 1 1 1 1 1 Price 165,000 100,000 20,000 200,000 85,000 700,000 280,000 1,550,000

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56 Administration Cost

The company is SME business which has 4600 square meters and uses machines in processing as well. Therefore, the company requires totally employees are eighteen people in ten roles as follow: Roles General Manager Specialist Accountant Specialist Technician Public Relation and Customer Service Machinery Professional Metal cutter Filler piece versatile machine Scale and Weight Machine Professional Specialist Product Separation Truck Driver Professional Excavator and Forklift Driver Professional Total Quantity 1 1 1 1 6 3 3 1 3 1 1 16 4,200 4,000 4,200 4,200 4,200 12,000 4,200 4,200 79,800 Salary 9,000 7,000 7,000 7,000 4,200 Total 9,000 7,000 7,000 7,000 25,200

The qualifications of general manager have to graduate at least bachelor degree in business administration major or equivalent in related field knowledgeable. Experienced at least 2 year, unlimited sex, aged 25 years or more. The qualifications of specialist accountant, specialist technician, public relation and customer service have to deeply understand its knowledge and experienced at least 1 year, unlimited sex, aged 24 years or more. The qualifications of other roles, employees need to graduate level professional certificate or equivalent. To ensure that qualified staff and level of maturity.

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57

Depreciation
Lists Computer Phone + Fax Machine Printer Refrigerator 29-inch television Air conditioning Fan Calculator Free Living Desk Chair Cabinet documents Versatile table TV rack Computer table Metal cutter Filler piece versatile machine Scale - VW-Platform Weight machine setting Forklift Truck - Mitsubishi FN527M Excavators scoop - MF750 Total Investment cost 19500 8900 1563 5000 7500 21900 1500 1500 9500 2400 3500 1000 400 400 400 165,000 100,000 20,000 200,000 85,000 700,000 280,000 Years 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 5 5 5 5 5 5 5 Jan 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Feb 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Mar 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Apr 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 May 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 June 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 July 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Aug 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Sep 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Oct 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Nov 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Dec 542 247 43 139 208 608 42 42 264 67 97 28 11 11 11 2,750 1,667 333 3,333 1,417 11,667 4,667 28,193 Total 6,500 2,967 521 1,667 2,500 7,300 500 500 3,167 800 1,167 333 133 133 133 33,000 20,000 4,000 40,000 17,000 140,000 56,000 338,321

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58

Chapter 5 Financial Analysis

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59

Income Statement Sri Cha Learn Beginning of year 1 to the Ending of Year 1
Item Revenue: Less: Cost of goods sold Gross margin Less: Operating expense Marketing expense Administrative expense Depreciation( organization plan and management) Property tax 12.5% Insurance Expense Total Operation expenses Profit before deduct interest rate Less: Interest expense Less: Value added 7% Profit before deduct income tax Less: Corporate tax Net Income 197,132 23,336 70,000 7,556 100,893 100,893 392,765 35,263 139,668 15,113 190,044 190,044 576,397 15,299 209,001 22,669 246,969 246,969 757,030 22,624 277,996 30,225 285,598 285,598 934,437 90,915 346,650 37,782 293,517 293,517 1,111,844 166,109 414,961 45,338 294,190 294,190 1,289,252 253,119 482,924 52,895 282,700 282,700 1,466,659 321,970 550,538 60,451 289,019 289,019 1,644,067 279,382 617,799 68,007 406,424 406,424 1,821,474 430,191 684,704 75,564 330,076 330,076 1,998,881 609,757 751,250 83,120 224,613 224,613 January 180,096 6,300 173,796 19,725 89,000 39,727 48,681 February 370,440 12,939 357,501 37,950 178,000 79,454 97,361 March 581,381 20,283 561,098 44,175 267,000 119,180 146,042 April 807,845 28,191 779,653 47,400 356,000 158,907 194,722 May 1,062,365 37,013 1,025,352 47,400 445,000 198,634 243,403 June 1,324,109 46,155 1,277,953 47,400 534,000 238,361 292,084 July 1,598,285 55,914 1,542,371 47,400 623,000 278,088 340,764 August 1,853,443 64,814 1,788,630 47,400 712,000 317,814 389,445 September 2,027,403 103,955 1,923,449 47,400 801,000 357,541 438,125 October 2,368,107 116,442 2,251,665 47,400 890,000 397,268 486,806 November 2,738,715 130,077 2,608,638 47,400 979,000 436,995 535,487 December 3,151,659 145,085 3,006,575 47,400 1,068,000 476,722 584,167 40,378 2,216,666 789,908 817,433 90,676 118,201 0 118,201

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60

Income Statement Sri Cha Learn Beginning of year 2 to the Ending of Year 2
Item Revenue: Less: Cost of goods sold Gross margin Less: Operating expense Marketing expense Administrative expense Depreciation( organization plan and management) Property tax 12.5% Insurance Expense Total Operation expenses Profit before deduct interest rate Less: Interest expense Less: Value added 7% Profit before deduct income tax Less: Corporate tax Net Income 180,407 34,580 65,818 7,556 38,795 38,795 360,815 74,619 131,267 15,113 71,761 71,761 541,222 138,527 196,345 22,669 80,487 80,487 721,630 220,386 261,047 30,225 70,886 70,886 902,037 334,818 325,371 37,782 28,336 28,336 1,082,444 457,531 389,313 45,338 22,880 1,262,852 594,425 452,871 52,895 88,660 1,443,259 709,528 516,040 60,451 133,038 1,623,667 888,971 578,817 68,007 242,147 1,804,074 1,102,423 641,198 75,564 385,661 1,984,481 1,350,384 703,181 83,120 564,082 January 216,115 1,128 214,987 3,000 89,000 39,727 48,681 February 444,528 9,095 435,433 6,000 178,000 79,454 97,361 March 697,657 17,907 679,750 9,000 267,000 119,180 146,042 April 969,414 27,398 942,016 12,000 356,000 158,907 194,722 May 1,274,838 37,983 1,236,855 15,000 445,000 198,634 243,403 June 1,588,931 48,955 1,539,976 18,000 534,000 238,361 292,084 July 1,917,942 60,665 1,857,277 21,000 623,000 278,088 340,764 August 2,224,132 71,344 2,152,787 24,000 712,000 317,814 389,445 September 2,597,092 84,454 2,512,638 27,000 801,000 357,541 438,125 October 3,005,937 99,439 2,906,497 30,000 890,000 397,268 486,806 November 3,450,666 115,801 3,334,865 33,000 979,000 436,995 535,487 December 3,946,199 133,810 3,812,389 36,000 1,068,000 476,722 584,167 40,378 2,205,266 1,607,122 764,762 90,676 751,684 90,253 22,880 88,660 133,038 242,147 385,661 564,082 661,431

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61

Income Statement Sri Cha Learn Beginning of year 3 to the Ending of Year 3
Item Revenue: Less: Cost of goods sold Gross margin Less: Operating expense Marketing expense Administrative expense Depreciation( organization plan and management) Property tax 12.5% Insurance Expense Total Operation expenses Profit before deduct interest rate Less: Interest expense Less: Value added 7% Profit before deduct income tax Less: Corporate tax Net Income 180,407 44,556 61,175 7,556 24,176 24,176 360,815 93,780 121,941 15,113 43,274 43,274 541,222 167,869 182,294 22,669 37,094 37,094 721,630 260,655 242,231 30,225 11,801 11,801 902,037 387,371 301,747 37,782 47,843 1,082,444 522,715 360,840 45,338 116,538 1,262,852 672,830 419,505 52,895 200,431 1,443,259 800,246 477,739 60,451 262,056 1,623,667 994,683 535,538 68,007 391,137 1,804,074 1,224,546 592,898 75,564 556,084 1,984,481 1,490,355 649,816 83,120 757,419 January 225,120 157 224,963 3,000 89,000 February 463,050 8,455 454,595 6,000 178,000 March 726,726 17,635 709,091 9,000 267,000 April 1,009,806 27,521 982,285 12,000 356,000 May 1,327,956 38,547 1,289,409 15,000 445,000 June 1,655,136 49,976 1,605,160 18,000 534,000 July 1,997,856 62,174 1,935,682 21,000 623,000 August 2,316,804 73,299 2,243,505 24,000 712,000 September 2,705,304 86,955 2,618,349 27,000 801,000 October 3,131,184 102,564 3,028,620 30,000 890,000 November 3,594,444 119,608 3,474,836 33,000 979,000 December 4,110,624 138,367 3,972,257 36,000 1,068,000

39,727 48,681

79,454 97,361

119,180 146,042

158,907 194,722

198,634 243,403

238,361 292,084

278,088 340,764

317,814 389,445

357,541 438,125

397,268 486,806

436,995 535,487

476,722 584,167 40,378 2,205,266 1,766,990 706,287 90,676 970,027 123,004

47,843

116,538

200,431

262,056

391,137

556,084

757,419

847,023

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62

Income Statement Sri Cha Learn Beginning of year 4 to the Ending of Year 4
Item Revenue: Less: Cost of goods sold Gross margin Less: Operating expense Marketing expense Administrative expense Depreciation( organization plan and management) Property tax 12.5% Insurance Expense Total Operation expenses Profit before deduct interest rate Less: Interest expense Less: Value added 7% Profit before deduct income tax Less: Corporate tax Net Income 180,407 51,982 56,021 7,556 11,595 11,595 360,815 108,795 111,587 15,113 17,904 17,904 541,222 191,342 166,695 22,669 1,978 1,978 721,630 293,358 221,340 30,225 41,792 41,792 902,037 430,297 275,519 37,782 116,996 116,996 1,082,444 576,115 329,228 45,338 201,549 201,549 1,262,852 737,133 382,462 52,895 301,777 301,777 1,443,259 874,796 435,217 60,451 379,128 379,128 1,623,667 1,081,081 487,490 68,007 525,584 525,584 1,804,074 1,323,967 539,275 75,564 709,128 709,128 1,984,481 1,603,907 590,569 83,120 930,218 930,218 January 228,722 3,668 232,390 3,000 89,000 39,727 48,681 February 470,459 849 469,610 6,000 178,000 79,454 97,361 March 738,354 5,789 732,564 9,000 267,000 119,180 146,042 April 1,025,963 10,976 1,014,987 12,000 356,000 158,907 194,722 May 1,349,203 16,869 1,332,334 15,000 445,000 198,634 243,403 June 1,681,618 23,058 1,658,560 18,000 534,000 238,361 292,084 July 2,029,822 29,836 1,999,985 21,000 623,000 278,088 340,764 August 2,353,873 35,817 2,318,056 24,000 712,000 317,814 389,445 September 2,748,589 43,841 2,704,748 27,000 801,000 357,541 438,125 October 3,181,283 53,242 3,128,041 30,000 890,000 397,268 486,806 November 3,651,955 63,566 3,588,389 33,000 979,000 436,995 535,487 December 4,176,394 75,211 4,101,183 36,000 1,068,000 476,722 584,167 40,378 2,205,266 1,895,917 641,367 90,676 1,163,874 152,081 1,011,792

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63

Income Statement Sri Cha Learn Beginning of year 5 to the Ending of Year 5
Item Revenue: Less: Cost of goods sold Gross margin Less: Operating expense Marketing expense Administrative expense Depreciation( organization plan and management) Property tax 12.5% Insurance Expense Total Operation expenses Profit before deduct interest rate Less: Interest expense Less: Value added 7% Profit before deduct income tax Less: Corporate tax Net Income 180,407 50,518 50,298 7,556 7,337 7,337 360,815 108,927 100,092 15,113 6,277 6,277 541,222 193,196 149,376 22,669 21,150 721,630 296,910 198,148 30,225 68,537 902,037 435,911 246,401 37,782 151,728 1,082,444 583,885 294,133 45,338 244,415 1,262,852 747,221 341,337 52,895 352,989 1,443,259 886,950 388,010 60,451 438,489 1,623,667 1,096,380 434,147 68,007 594,226 1,804,074 1,342,654 479,743 75,564 787,348 1,984,481 1,626,312 524,793 83,120 1,018,399 January 234,125 3,200 230,925 3,000 89,000 39,727 48,681 February 481,572 11,830 469,742 6,000 178,000 79,454 97,361 March 755,795 21,377 734,418 9,000 267,000 119,180 146,042 April 1,050,198 31,658 1,018,540 12,000 356,000 158,907 194,722 May 1,381,074 43,126 1,337,948 15,000 445,000 198,634 243,403 June 1,721,341 55,012 1,666,330 18,000 534,000 238,361 292,084 July 2,077,770 67,697 2,010,073 21,000 623,000 278,088 340,764 August 2,409,476 79,267 2,330,209 24,000 712,000 317,814 389,445 September 2,813,516 93,469 2,720,047 27,000 801,000 357,541 438,125 October 3,256,431 109,703 3,146,728 30,000 890,000 397,268 486,806 November 3,738,222 127,429 3,610,793 33,000 979,000 436,995 535,487 December 4,275,049 146,938 4,128,110 36,000 1,068,000 476,722 584,167 40,378 2,205,266 1,922,844 569,293 90,676 1,262,875 166,931 21,150 68,537 151,728 244,415 352,989 438,489 594,226 787,348 1,018,399 1,095,944

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64

Statement of Cash Flow Beginning of year 1 to the ending of year 1
Beginning Cash received: Sales Receivable Other revenue Total cash Cash payment: Operation Purchasing goods Marketing Expense Administrative Expense Insurance Expense Property Tax Corporate Tax Investment Add Purchasing fixed asset Add Pre-operating expense Total cash payment Net cash: Net cash Add current fund Total cash Add owner's capital Add loan Add payable Less: Installment debt payment Less: Interest expense Less: value added tax 7 % Net cash 1,599,100 37,948 70,000 7,556 1,497,286 38,280 69,668 7,556 1,409,436 38,615 69,333 7,556 1,353,321 38,953 68,995 7,556 1,315,224 39,294 68,654 7,556 1,307,347 39,638 68,310 7,556 1,306,625 39,984 67,964 7,556 1,317,594 40,334 67,614 7,556 1,311,036 40,687 67,261 7,556 1,179,709 41,043 66,905 7,556 1,266,164 41,402 66,546 7,556 1,369,460 41,765 66,183 7,556 1,473,246 1,599,100 1,599,100 13,690 1,599,100 1,612,790 27,655 1,497,286 1,524,941 59,389 1,409,436 1,468,825 77,408 1,353,321 1,430,729 107,627 1,315,224 1,422,851 114,783 1,307,347 1,422,130 126,473 1,306,625 1,433,099 108,946 1,317,594 1,426,540 15,822 1,311,036 1,295,214 201,959 1,179,709 1,381,668 218,801 1,266,164 1,484,965 219,290 1,369,460 1,588,750 166,406 162,689 151,552 149,056 146,893 146,961 147,703 146,213 189,782 138,745 151,807 193,654 9,000 19,725 89,000 48,681 6,784 18,225 89,000 48,681 7,646 6,225 89,000 48,681 8,151 3,225 89,000 48,681 9,212 89,000 48,681 9,281 89,000 48,681 10,022 89,000 48,681 8,532 89,000 48,681 52,101 89,000 48,681 1,065 89,000 48,681 14,127 89,000 48,681 15,596 89,000 40,378 48,681 0 180,096 190,344 210,941 226,464 254,520 261,744 274,176 255,158 173,960 340,704 370,608 412,944 180,096 190,344 210,941 226,464 254,520 261,744 274,176 255,158 173,960 340,704 370,608 412,944 January February March April May June July August September October November December

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Statement of Cash Flow Beginning of year 2 to the ending of year 2
Beginning Cash received: Sales Receivable Other revenue Total cash Cash payment: Operation Purchasing goods Marketing Expense Administrative Expense Insurance Expense Property Tax Corporate Tax Investment Add Purchasing fixed asset Add Pre-operating expense Total cash payment Net cash: Net cash Add current fund Total cash Add owner's capital Add loan Add payable Less: Installment debt payment Less: Interest expense Less: value added tax 7 % Net cash 1,473,246 42,130 65,818 7,556 1,435,240 42,499 65,449 7,556 1,399,327 42,870 65,077 7,556 1,387,095 43,246 64,702 7,556 1,392,886 43,624 64,324 7,556 1,431,071 44,006 63,942 7,556 1,477,842 44,391 63,557 7,556 1,538,642 44,779 63,169 7,556 1,578,408 45,171 62,777 7,556 1,681,032 45,566 62,382 7,556 1,817,903 45,965 61,983 7,556 1,989,496 46,367 61,581 7,556 2,079,499 1,473,246 1,473,246 77,498 1,473,246 1,550,744 79,592 1,435,240 1,514,831 103,273 1,399,327 1,502,600 121,295 1,387,095 1,508,391 153,689 1,392,886 1,546,575 162,275 1,431,071 1,593,346 176,304 1,477,842 1,654,146 155,271 1,538,642 1,693,913 218,128 1,578,408 1,796,537 252,376 1,681,032 1,933,408 287,097 1,817,903 2,105,000 205,507 1,989,496 2,195,003 138,617 148,821 149,856 150,462 151,735 151,818 152,707 150,919 154,832 156,469 157,633 290,026 2,064 3,000 89,000 48,681 8,141 3,000 89,000 48,681 9,176 3,000 89,000 48,681 9,781 3,000 89,000 48,681 11,055 3,000 89,000 48,681 11,137 3,000 89,000 48,681 12,026 3,000 89,000 48,681 10,238 3,000 89,000 48,681 14,151 3,000 89,000 48,681 15,789 3,000 89,000 48,681 16,952 3,000 89,000 48,681 18,715 3,000 89,000 40,378 48,681 90,253 216,115 228,413 253,129 271,757 305,424 314,093 329,011 306,190 372,960 408,845 444,730 495,533 216,115 228,413 253,129 271,757 305,424 314,093 329,011 306,190 372,960 408,845 444,730 495,533 January February March April May June July August September October November December

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Statement of Cash Flow Beginning of year 3 to the ending of year 3
Beginning Cash received: Sales Receivable Other revenue Total cash Cash payment: Operation Purchasing goods Marketing Expense Administrative Expense Insurance Expense Property Tax Corporate Tax Investment Add Purchasing fixed asset Add Pre-operating expense Total cash payment Net cash: Net cash Add current fund Total cash Add owner's capital Add loan Add payable Less: Installment debt payment Less: Interest expense Less: value added tax 7 % Net cash 4,186 3,000 89,000 48,681 8,480 3,000 89,000 48,681 9,558 3,000 89,000 48,681 10,188 3,000 89,000 48,681 11,515 3,000 89,000 48,681 11,601 3,000 89,000 48,681 12,527 3,000 89,000 48,681 10,665 3,000 89,000 48,681 14,741 3,000 89,000 48,681 16,446 3,000 89,000 48,681 17,658 3,000 89,000 48,681 19,495 3,000 89,000 40,378 48,681 123,004 January 225,120 February 237,930 March 263,676 April 283,080 May 318,150 June 327,180 July 342,720 August 318,948 September 388,500 October 425,880 November 463,260 December 516,180

225,120

237,930

263,676

283,080

318,150

327,180

342,720

318,948

388,500

425,880

463,260

516,180

136,494 88,626 2,079,499 2,168,124

149,160 88,770 2,052,620 2,141,390

150,238 113,438 2,025,885 2,139,323

150,869 132,211 2,023,819 2,156,029

152,196 165,954 2,040,525 2,206,479

152,282 174,898 2,090,975 2,265,873

153,208 189,512 2,150,369 2,339,881

151,346 167,602 2,224,377 2,391,979

155,422 233,078 2,276,475 2,509,553

157,127 268,753 2,394,049 2,662,802

158,339 304,921 2,547,297 2,852,218

323,557 192,623 2,736,714 2,929,337

2,079,499 2,079,499

2,079,499

46,773 61,175 7,556 2,052,620

47,182 60,766 7,556 2,025,885

47,595 60,353 7,556 2,023,819

48,011 59,937 7,556 2,040,525

48,432 59,516 7,556 2,090,975

48,855 59,093 7,556 2,150,369

49,283 58,665 7,556 2,224,377

49,714 58,234 7,556 2,276,475

50,149 57,799 7,556 2,394,049

50,588 57,360 7,556 2,547,297

51,030 56,918 7,556 2,736,714

51,477 56,471 7,556 2,813,833

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Statement of Cash Flow Beginning of year 4 to the ending of year 4
Beginning Cash received: Sales Receivable Other revenue Total cash Cash payment: Operation Purchasing goods Marketing Expense Administrative Expense Insurance Expense Property Tax Corporate Tax Investment Add Purchasing fixed asset Add Pre-operating expense Total cash payment Net cash: Net cash Add current fund Total cash Add owner's capital Add loan Add payable Less: Installment debt payment Less: Interest expense Less: value added tax 7 % Net cash 2,813,833 51,927 56,021 7,556 2,796,203 52,382 55,566 7,556 2,777,177 52,840 55,108 7,556 2,783,765 53,302 54,646 7,556 2,809,897 53,769 54,179 7,556 2,870,756 54,239 53,709 7,556 2,940,670 54,714 53,234 7,556 3,025,658 55,193 52,755 7,556 3,087,885 55,676 52,272 7,556 3,217,517 56,163 51,785 7,556 3,384,034 56,654 51,294 7,556 3,587,802 57,150 50,798 7,556 3,651,387 2,813,833 2,813,833 97,875 2,813,833 2,911,708 96,478 2,796,203 2,892,682 122,092 2,777,177 2,899,269 141,637 2,783,765 2,925,402 176,363 2,809,897 2,986,260 185,418 2,870,756 3,056,174 200,493 2,940,670 3,141,162 177,732 3,025,658 3,203,390 245,136 3,087,885 3,333,021 282,022 3,217,517 3,499,539 319,272 3,384,034 3,703,306 179,090 3,587,802 3,766,892 130,847 145,259 145,803 145,972 146,877 146,997 147,711 146,320 149,580 150,672 151,400 345,349 9,834 3,000 89,000 48,681 4,578 3,000 89,000 48,681 5,122 3,000 89,000 48,681 5,292 3,000 89,000 48,681 6,197 3,000 89,000 48,681 6,316 3,000 89,000 48,681 7,030 3,000 89,000 48,681 5,639 3,000 89,000 48,681 8,899 3,000 89,000 48,681 9,991 3,000 89,000 48,681 10,720 3,000 89,000 48,681 12,210 3,000 89,000 40,378 48,681 152,081 228,722 241,737 267,895 287,609 323,240 332,415 348,204 324,051 394,716 432,694 470,672 524,439 228,722 241,737 267,895 287,609 323,240 332,415 348,204 324,051 394,716 432,694 470,672 524,439 January February March April May June July August September October November December

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Statement of Cash Flow Beginning of year 5 to the ending of year 5
Beginning Cash received: Sales Receivable Other revenue Total cash Cash payment: Operation Purchasing goods Marketing Expense Administrative Expense Insurance Expense Property Tax Corporate Tax Investment Add Purchasing fixed asset Add Pre-operating expense Total cash payment Net cash: Net cash Add current fund Total cash Add owner's capital Add loan Add payable Less: Installment debt payment Less: Interest expense Less: value added tax 7 % Net cash 3,651,387 57,650 50,298 7,556 3,627,608 58,154 49,794 7,556 3,610,051 58,663 49,285 7,556 3,618,149 59,177 48,771 7,556 3,645,771 59,694 48,254 7,556 3,708,487 60,217 47,731 7,556 3,780,504 60,744 47,204 7,556 3,867,719 61,275 46,673 7,556 3,932,149 61,811 46,137 7,556 4,064,673 62,352 45,596 7,556 4,234,299 62,898 45,050 7,556 4,441,540 63,448 44,500 7,556 4,494,598 3,651,387 3,651,387 91,725 3,651,387 3,743,112 97,948 3,627,608 3,725,556 123,602 3,610,051 3,733,653 143,127 3,618,149 3,761,276 178,220 3,645,771 3,823,991 187,522 3,708,487 3,896,008 202,720 3,780,504 3,983,223 179,934 3,867,719 4,047,653 248,029 3,932,149 4,180,177 285,130 4,064,673 4,349,803 322,745 4,234,299 4,557,044 168,563 4,441,540 4,610,103 142,400 149,499 150,621 151,277 152,656 152,746 153,709 151,772 156,011 157,785 159,045 368,264 1,719 3,000 89,000 48,681 8,819 3,000 89,000 48,681 9,940 3,000 89,000 48,681 10,596 3,000 89,000 48,681 11,976 3,000 89,000 48,681 12,065 3,000 89,000 48,681 13,029 3,000 89,000 48,681 11,092 3,000 89,000 48,681 15,331 3,000 89,000 48,681 17,104 3,000 89,000 48,681 18,365 3,000 89,000 48,681 20,274 3,000 89,000 40,378 48,681 166,931 234,125 247,447 274,223 294,403 330,876 340,267 356,429 331,706 404,040 442,915 481,790 536,827 234,125 247,447 274,223 294,403 330,876 340,267 356,429 331,706 404,040 442,915 481,790 536,827 January February March April May June July August September October November December

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Balance Sheet beginning of year 1 to the ending of year 1
Beginning Asset Current Asset: Cash Inventory Total current asset Fixed Asset: Land Building Equipment/Machinery Vehicle Pre-operating expense Less: accumulated depreciation Total fixed asset Total asset Liability and owner's equity Liabilties: Account payable Other current liability Total current Liability Payback income tax Payback other expense Loan Total liabilities Owner's equity: Capital Dividend Add: income statement accumulated Total owner's equity
Total liabilities and owner's equity

January

February

March

April

May

June

July

August

September

October

November

December

1,599,100 1,599,100 4,000,000 673,337 155,863 1,550,000 21,700 6,400,900 8,000,000

1,497,286 2,700 1,499,986 4,000,000 673,337 155,863 1,550,000 21,700 39,727 6,361,173 7,861,159

1,409,436 2,845 1,412,281 4,000,000 673,337 155,863 1,550,000 21,700 79,454 6,321,446 7,733,728

1,353,321 3,147 1,356,468 4,000,000 673,337 155,863 1,550,000 21,700 119,180 6,281,720 7,638,188

1,315,224 3,389 1,318,614 4,000,000 673,337 155,863 1,550,000 21,700 158,907 6,241,993 7,560,606

1,307,347 3,780 1,311,128 4,000,000 673,337 155,863 1,550,000 21,700 198,634 6,202,266 7,513,393

1,306,625 3,918 1,310,544 4,000,000 673,337 155,863 1,550,000 21,700 238,361 6,162,539 7,473,083

1,317,594 4,182 1,321,777 4,000,000 673,337 155,863 1,550,000 21,700 278,088 6,122,812 7,444,589

1,311,036 3,814 1,314,850 4,000,000 673,337 155,863 1,550,000 21,700 317,814 6,083,086 7,397,936

1,179,709 16,775 1,196,484 4,000,000 673,337 155,863 1,550,000 21,700 357,541 6,043,359 7,239,843

1,266,164 5,352 1,271,516 4,000,000 673,337 155,863 1,550,000 21,700 397,268 6,003,632 7,275,148

1,369,460 5,844 1,375,304 4,000,000 673,337 155,863 1,550,000 21,700 436,995 5,963,905 7,339,209

1,473,246 6,432 1,479,678 4,000,000 673,337 155,863 1,550,000 21,700 476,722 5,924,178 7,403,856

-

-

-

-

-

-

-

-

-

-

-

-

-

8,000,000 8,000,000

7,962,052 7,962,052

7,923,772 7,923,772

7,885,157 7,885,157

7,846,204 7,846,204

7,806,910 7,806,910

7,767,273 7,767,273

7,727,288 7,727,288

7,686,954 7,686,954

7,646,267 7,646,267

7,605,224 7,605,224

7,563,822 7,563,822

7,522,057 7,522,057

8,000,000

100,893 100,893 7,861,159

190,044 190,044 7,733,728

246,969 246,969 7,638,188

285,598 285,598 7,560,606

293,517 293,517 7,513,393

294,190 294,190 7,473,083

282,700 282,700 7,444,589

289,019 289,019 7,397,936

406,424 406,424 7,239,843

330,076 330,076 7,275,148

224,613 224,613 7,339,209

118,201 118,201 7,403,856

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Balance Sheet From the beginning of year 2 to the ending of year 2
Beginning Asset Current Asset: Cash Inventory Total current asset Fixed Asset: Land Building Equipment/Machinery Vehicle Pre-operating expense Less: accumulated depreciation Total fixed asset Total asset Liability and owner's equity Liabilties: Account payable Other current liability Total current Liability Payback income tax Payback other expense Loan Total liabilities Owner's equity: Capital Dividend Add: income statement accumulated Total owner's equity Total liabilities and owner's equity 118,201 7,403,856 118,201 118,201 38,795 156,996 7,322,931 118,201 71,761 189,963 7,247,466 118,201 80,487 198,688 7,195,870 118,201 70,886 189,088 7,162,225 118,201 28,336 146,537 7,161,152 118,201 118,201 118,201 118,201 118,201 118,201 118,201 7,522,057 7,522,057 7,479,927 7,479,927 7,437,428 7,437,428 7,394,558 7,394,558 7,351,312 7,351,312 7,307,688 7,307,688 7,263,683 7,263,683 7,219,292 7,219,292 7,174,513 7,174,513 7,129,342 7,129,342 7,083,775 7,083,775 7,037,810 7,037,810 6,991,443 6,991,443 4,000,000 673,337 155,863 1,550,000 21,700 476,722 5,924,178 7,403,856 4,000,000 673,337 155,863 1,550,000 21,700 516,449 5,884,451 7,322,931 4,000,000 673,337 155,863 1,550,000 21,700 556,175 5,844,725 7,247,466 4,000,000 673,337 155,863 1,550,000 21,700 595,902 5,804,998 7,195,870 4,000,000 673,337 155,863 1,550,000 21,700 635,629 5,765,271 7,162,225 4,000,000 673,337 155,863 1,550,000 21,700 675,356 5,725,544 7,161,152 4,000,000 673,337 155,863 1,550,000 21,700 715,083 5,685,817 7,168,361 4,000,000 673,337 155,863 1,550,000 21,700 754,809 5,646,091 7,189,751 4,000,000 673,337 155,863 1,550,000 21,700 794,536 5,606,364 7,189,349 4,000,000 673,337 155,863 1,550,000 21,700 834,263 5,566,637 7,253,288 4,000,000 673,337 155,863 1,550,000 21,700 873,990 5,526,910 7,351,236 4,000,000 673,337 155,863 1,550,000 21,700 913,717 5,487,183 7,483,692 4,000,000 673,337 155,863 1,550,000 21,700 953,443 5,447,457 7,534,673 1,473,246 6,432 1,479,678 1,435,240 3,240 1,438,480 1,399,327 3,414 1,402,741 1,387,095 3,777 1,390,872 1,392,886 4,067 1,396,954 1,431,071 4,537 1,435,607 1,477,842 4,702 1,482,544 1,538,642 5,019 1,543,660 1,578,408 4,577 1,582,985 1,681,032 5,619 1,686,651 1,817,903 6,422 1,824,326 1,989,496 7,012 1,996,508 2,079,499 7,718 2,087,217 January February March April May June July August September October November December

22,880 95,321 7,168,361

88,660 29,541 7,189,751

133,038 14,837 7,189,349

242,147 123,946 7,253,288

385,661 267,460 7,351,236

564,082 445,881 7,483,692

661,431 543,230 7,534,673

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Balance Sheet From the beginning of year 3 to the ending of year 3
Beginning Asset Current Asset: Cash Inventory Total current asset Fixed Asset: Land Building Equipment/Machinery Tool Pre-operating expense Less: accumulated depreciation Total fixed asset Total asset Liability and owner's equity Liabilties: Account payable Other current liability Total current Liability Payback income tax Payback other expense Loan Total liabilities Owner's equity: Capital Dividend Add: income statement accumulated Total owner's equity Total liabilities and owner's equity (4) + (5) 543,230 7,534,673 543,230 543,230 24,176 519,054 7,463,725 543,230 43,274 499,956 7,397,445 543,230 37,094 506,136 7,356,029 543,230 11,801 531,429 7,333,311 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 6,991,443 6,991,443 6,944,670 6,944,670 6,897,488 6,897,488 6,849,893 6,849,893 6,801,882 6,801,882 6,753,450 6,753,450 6,704,595 6,704,595 6,655,312 6,655,312 6,605,598 6,605,598 6,555,449 6,555,449 6,504,861 6,504,861 6,453,831 6,453,831 6,402,354 6,402,354 4,000,000 673,337 155,863 1,550,000 21,700 953,443 5,447,457 7,534,673 4,000,000 673,337 155,863 1,550,000 21,700 993,170 5,407,730 7,463,725 4,000,000 673,337 155,863 1,550,000 21,700 1,032,897 5,368,003 7,397,445 4,000,000 673,337 155,863 1,550,000 21,700 1,072,624 5,328,276 7,356,029 4,000,000 673,337 155,863 1,550,000 21,700 1,112,351 5,288,549 7,333,311 4,000,000 673,337 155,863 1,550,000 21,700 1,152,078 5,248,822 7,344,523 4,000,000 673,337 155,863 1,550,000 21,700 1,191,804 5,209,096 7,364,363 4,000,000 673,337 155,863 1,550,000 21,700 1,231,531 5,169,369 7,398,973 4,000,000 673,337 155,863 1,550,000 21,700 1,271,258 5,129,642 7,410,885 4,000,000 673,337 155,863 1,550,000 21,700 1,310,985 5,089,915 7,489,817 4,000,000 673,337 155,863 1,550,000 21,700 1,350,712 5,050,188 7,604,176 4,000,000 673,337 155,863 1,550,000 21,700 1,390,438 5,010,462 7,754,480 4,000,000 673,337 155,863 1,550,000 21,700 1,430,165 4,970,735 7,792,607 2,079,499 7,718 2,087,217 2,052,620 3,375 2,055,995 2,025,885 3,556 2,029,442 2,023,819 3,934 2,027,753 2,040,525 4,237 2,044,762 2,090,975 4,726 2,095,701 2,150,369 4,898 2,155,267 2,224,377 5,228 2,229,604 2,276,475 4,768 2,281,242 2,394,049 5,853 2,399,901 2,547,297 6,690 2,553,987 2,736,714 7,304 2,744,018 2,813,833 8,040 2,821,872 January February March April May June July August September October November December

47,843 591,073 7,344,523

116,538 659,768 7,364,363

200,431 743,661 7,398,973

262,056 805,286 7,410,885

391,137 934,367 7,489,817

556,084 1,099,314 7,604,176

757,419 1,300,649 7,754,480

847,023 1,390,253 7,792,607

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72

Balance Sheet From the beginning of year 4 to the ending of year 4
Beginning Asset Current Asset: Cash Inventory Total current asset Fixed Asset: Land Building Equipment/Machinery Vehicle Pre-operating expense Less: accumulated depreciation Total fixed asset Total asset Liability and owner's equity Liabilties: Account payable Other current liability Total current Liability Payback income tax Payback other expense Loan Total liabilities Owner's equity: Capital Dividend Add: income statement accumulated Total owner's equity Total liabilities and owner's equity 1,390,253 7,792,607 1,390,253 1,390,253 11,595 1,378,659 7,729,085 1,390,253 17,904 1,372,349 7,670,394 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 6,402,354 6,402,354 6,350,427 6,350,427 6,298,045 6,298,045 6,245,205 6,245,205 6,191,902 6,191,902 6,138,133 6,138,133 6,083,894 6,083,894 6,029,180 6,029,180 5,973,987 5,973,987 5,918,312 5,918,312 5,862,149 5,862,149 5,805,495 5,805,495 5,748,345 5,748,345 4,000,000 673,337 155,863 1,550,000 21,700 1,430,165 4,970,735 7,792,607 4,000,000 673,337 155,863 1,550,000 21,700 1,469,892 4,931,008 7,729,085 4,000,000 673,337 155,863 1,550,000 21,700 1,509,619 4,891,281 7,670,394 4,000,000 673,337 155,863 1,550,000 21,700 1,549,346 4,851,554 7,637,436 4,000,000 673,337 155,863 1,550,000 21,700 1,589,072 4,811,828 7,623,947 4,000,000 673,337 155,863 1,550,000 21,700 1,628,799 4,772,101 7,645,383 4,000,000 673,337 155,863 1,550,000 21,700 1,668,526 4,732,374 7,675,696 4,000,000 673,337 155,863 1,550,000 21,700 1,708,253 4,692,647 7,721,210 4,000,000 673,337 155,863 1,550,000 21,700 1,747,980 4,652,920 7,743,369 4,000,000 673,337 155,863 1,550,000 21,700 1,787,707 4,613,194 7,834,149 4,000,000 673,337 155,863 1,550,000 21,700 1,827,433 4,573,467 7,961,530 4,000,000 673,337 155,863 1,550,000 21,700 1,867,160 4,533,740 8,125,967 4,000,000 673,337 155,863 1,550,000 21,700 1,906,887 4,494,013 8,150,391 2,813,833 8,040 2,821,872 2,796,203 1,874 2,798,077 2,777,177 1,936 2,779,113 2,783,765 2,117 2,785,882 2,809,897 2,223 2,812,120 2,870,756 2,526 2,873,282 2,940,670 2,653 2,943,322 3,025,658 2,905 3,028,563 3,087,885 2,563 3,090,448 3,217,517 3,439 3,220,956 3,384,034 4,029 3,388,064 3,587,802 4,425 3,592,227 3,651,387 4,990 3,656,378 January February March April May June July August September October November December

1,978 1,392,232 7,637,436

41,792 1,432,045 7,623,947

116,996 1,507,249 7,645,383

201,549 1,591,802 7,675,696

301,777 1,692,030 7,721,210

379,128 1,769,381 7,743,369

525,584 1,915,837 7,834,149

709,128 2,099,381 7,961,530

930,218 2,320,472 8,125,967

1,011,792 2,402,046 8,150,391

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73

Balance Sheet From the beginning of year 5 to the ending of year 5
Beginning Asset Current Asset: Cash Inventory Total current asset Fixed Asset: Land Building Equipment/Machinery Vehicle Pre-operating expense Less: accumulated depreciation Total fixed asset Total asset Liability and owner's equity Liabilties: Account payable Other current liability Total current Liability Payback income tax Payback other expense Loan Total liabilities Owner's equity: Capital Dividend Add: income statement accumulated Total owner's equity 2,402,046 2,402,046 2,402,046 7,337 2,394,709 2,402,046 6,277 2,395,769 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 5,748,345 5,748,345 5,690,695 5,690,695 5,632,541 5,632,541 5,573,877 5,573,877 5,514,701 5,514,701 5,455,006 5,455,006 5,394,790 5,394,790 5,334,046 5,334,046 5,272,771 5,272,771 5,210,960 5,210,960 5,148,608 5,148,608 5,085,710 5,085,710 5,022,262 5,022,262 4,000,000 673,337 155,863 1,550,000 21,700 1,906,887 4,494,013 8,150,391 4,000,000 673,337 155,863 1,550,000 21,700 1,946,614 4,454,286 8,085,404 4,000,000 673,337 155,863 1,550,000 21,700 1,986,341 4,414,559 8,028,309 4,000,000 673,337 155,863 1,550,000 21,700 2,026,067 4,374,833 7,997,073 4,000,000 673,337 155,863 1,550,000 21,700 2,065,794 4,335,106 7,985,283 4,000,000 673,337 155,863 1,550,000 21,700 2,105,521 4,295,379 8,008,780 4,000,000 673,337 155,863 1,550,000 21,700 2,145,248 4,255,652 8,041,250 4,000,000 673,337 155,863 1,550,000 21,700 2,184,975 4,215,925 8,089,081 4,000,000 673,337 155,863 1,550,000 21,700 2,224,701 4,176,199 8,113,306 4,000,000 673,337 155,863 1,550,000 21,700 2,264,428 4,136,472 8,207,231 4,000,000 673,337 155,863 1,550,000 21,700 2,304,155 4,096,745 8,338,001 4,000,000 673,337 155,863 1,550,000 21,700 2,343,882 4,057,018 8,506,154 4,000,000 673,337 155,863 1,550,000 21,700 2,383,609 4,017,291 8,520,251 3,651,387 4,990 3,656,378 3,627,608 3,510 3,631,118 3,610,051 3,699 3,613,750 3,618,149 4,092 3,622,241 3,645,771 4,406 3,650,178 3,708,487 4,915 3,713,401 3,780,504 5,094 3,785,598 3,867,719 5,437 3,873,156 3,932,149 4,959 3,937,107 4,064,673 6,087 4,070,760 4,234,299 6,957 4,241,256 4,441,540 7,597 4,449,136 4,494,598 8,361 4,502,960 January February March April May June July August September October November December

-

-

-

-

-

-

-

-

-

-

-

-

-

21,150 2,423,196

68,537 2,470,583

151,728 2,553,774

244,415 2,646,460

352,989 2,755,035

438,489 2,840,535

594,226 2,996,272

787,348 3,189,394

1,018,399 3,420,444

1,095,944 3,497,989

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74

Net Present Value
Investment 1 2 3 4 5 NPV Investment Cost & Net Income -8000000 1,473,246 2,079,499 2,813,833 3,651,387 4,494,598 2,299,170 Discount Rate 10.5%

Payback Period
Payback Period Cost of Project/ Average Annual Income

Cost of Project Average Annual Income

8,000,000 2,902,513

Payback period

2.76

Years

Internal Rate of Return IRR

19%

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75
Income Statement
4,000,000 3,500,000 3,000,000

Cash Flow
16,000,000 14,000,000 12,000,000

2,500,000 Year 5 2,000,000
Baht

10,000,000
Baht

Year 5 Year 4 Year 3 Year 2 Year 1

Year 4 Year 3 Year 2 Year 1

1,500,000 1,000,000 500,000 -500,000 -1,000,000 Months 1 2 3 4 5 6 7 8 9 10 11 12

8,000,000 6,000,000 4,000,000 2,000,000 1 2 3 4 5 6 7 8 9 10 11 12 M onths

Sales Forecast
3,000,000

Cash flow 5,000,000 4,500,000

2,500,000

4,000,000
2,000,000
Baht

3,500,000
Ye ar 5

Baht

Ye ar 4 1,500,000 Ye ar 3 Ye ar 2 1,000,000 Ye ar 1

3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Cash flow

500,000

500,000
0 1 2 3 4 5 6 7 8 9 10 11 12 Months

1 2 3 Years 4 5

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76

Budget and source of fund
Item 1. Current fund 1.1 Cash for purchasing goods 1.2 Cash for operating Total current fund 2. Fixed Assets 2.1 Land 2.2 Building 2.3 Equipment 2.4 Tool Total Fixed Assets 3. Pre-operating expense 3.1 Electronics register expense 3.2 Water supply register expense (2 Inch) 3.3 Telephone register expense 3.4 Company registering Total Pre-operating expense Total Cost of project Ratio: Total Source of fund (loan)

1,599,100 1,599,100 4,000,000 673,337 155,863 1,550,000 6,379,200 4,450 4,100 3,750 9,400 21,700 8,000,000 100%

1,599,100 1,599,100 4,000,000 673,337 155,863 1,550,000 6,379,200 4,450 4,100 3,750 9,400 21,700 8,000,000 100%

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77

Market Expense
Marketing Cost in Year 1 Price/Unit FM 95.5 FM 95.75 FM 102.5 Flyer 3000 copies Posters Total 1,000 1,000 1,000 4 1,500 Jan 5,000 5,000 5,000 3,225 1,500 19,725 Feb 5,000 5,000 5,000 3,225 0 18,225 Mar 1,000 1,000 1,000 3,225 0 6,225 Apr 0 0 0 3,225 0 3,225 May 0 0 0 0 0 0 June July Aug Sep Oct Nov Dec 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 11,000 11,000 11,000 12,900 1,500 47,400

Marketing Cost in Year 2 Price/Unit FM 95.5 FM 95.75 FM 102.5 Flyer 3000 copies Posters Total Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total 12,000 12,000 12,000 0 0 36,000

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 4 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

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78 Marketing Cost in Year 3 Price/Unit FM 95.5 FM 95.75 FM 102.5 Flyer 3000 copies Posters Total Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total 12,000 12,000 12,000 0 0 36,000

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 4 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Marketing Cost in Year 4 Price/Unit FM 95.5 FM 95.75 FM 102.5 Flyer 3000 copies Posters Total Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total 12,000 12,000 12,000 0 0 36,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 4 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

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79

Marketing Cost in Year 5 Price/Unit FM 95.5 FM 95.75 FM 102.5 Flyer 3000 copies Posters Total Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total 12,000 12,000 12,000 0 0 36,000

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 4 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

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80

Loan
Year 1 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
8,000,000 37,948 70,000 7,556 8,070,000 7,962,052 38,280 69,668 7,556 8,031,720 7,923,772 38,615 69,333 7,556 7,993,105

April
7,885,157 38,953 68,995 7,556 7,954,152

May
7,846,204 39,294 68,654 7,556 7,914,858

June
7,806,910 39,638 68,310 7,556 7,875,221

July
7,767,273 39,984 67,964 7,556 7,835,236

August
7,727,288 40,334 67,614 7,556 7,794,902

September October November December
7,686,954 40,687 67,261 7,556 7,754,215 7,646,267 41,043 66,905 7,556 7,713,172 7,605,224 41,402 66,546 7,556 7,671,770 7,563,822 41,765 66,183 7,556 7,630,005

Total
7,522,057 477,943 817,433 90,676

Year 2 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
7,522,057 42,130 65,818 7,556 7,587,875 7,479,927 42,499 65,449 7,556 7,545,376 7,437,428 42,870 65,077 7,556 7,502,506

April
7,394,558 43,246 64,702 7,556 7,459,260

May
7,351,312 43,624 64,324 7,556 7,415,636

June
7,307,688 44,006 63,942 7,556 7,371,631

July
7,263,683 44,391 63,557 7,556 7,327,240

August
7,219,292 44,779 63,169 7,556 7,282,461

September October November December
7,174,513 45,171 62,777 7,556 7,237,290 7,129,342 45,566 62,382 7,556 7,191,723 7,083,775 45,965 61,983 7,556 7,145,758 7,037,810 46,367 61,581 7,556 7,099,391

Total
6,991,443 530,614 764,762 90,676

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81

Year 3 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
6,991,443 46,773 61,175 7,556 7,052,618 6,944,670 47,182 60,766 7,556 7,005,436 6,897,488 47,595 60,353 7,556 6,957,841

April
6,849,893 48,011 59,937 7,556 6,909,830

May
6,801,882 48,432 59,516 7,556 6,861,398

June
6,753,450 48,855 59,093 7,556 6,812,543

July
6,704,595 49,283 58,665 7,556 6,763,260

August September October November December
6,655,312 49,714 58,234 7,556 6,713,546 6,605,598 50,149 57,799 7,556 6,663,397 6,555,449 50,588 57,360 7,556 6,612,809 6,504,861 51,030 56,918 7,556 6,561,779 6,453,831 51,477 56,471 7,556 6,510,302

Total
6,402,354 589,089 706,287 90,676

Year 4 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
6,402,354 51,927 56,021 7,556 6,458,375 6,350,427 52,382 55,566 7,556 6,405,993 6,298,045 52,840 55,108 7,556 6,353,153

April
6,245,205 53,302 54,646 7,556 6,299,850

May
6,191,902 53,769 54,179 7,556 6,246,081

June
6,138,133 54,239 53,709 7,556 6,191,842

July
6,083,894 54,714 53,234 7,556 6,137,128

August September October November December
6,029,180 55,193 52,755 7,556 6,081,935 5,973,987 55,676 52,272 7,556 6,026,260 5,918,312 56,163 51,785 7,556 5,970,097 5,862,149 56,654 51,294 7,556 5,913,443 5,805,495 57,150 50,798 7,556 5,856,293

Total
5,748,345 654,009 641,367 90,676

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82 Year 5 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
5,748,345 57,650 50,298 7,556 5,798,643 5,690,695 58,154 49,794 7,556 5,740,489 5,632,541 58,663 49,285 7,556 5,681,825

April
5,573,877 59,177 48,771 7,556 5,622,649

May
5,514,701 59,694 48,254 7,556 5,562,954

June
5,455,006 60,217 47,731 7,556 5,502,738

July
5,394,790 60,744 47,204 7,556 5,441,994

August September October November December
5,334,046 61,275 46,673 7,556 5,380,719 5,272,771 61,811 46,137 7,556 5,318,908 5,210,960 62,352 45,596 7,556 5,256,556 5,148,608 62,898 45,050 7,556 5,193,658 5,085,710 63,448 44,500 7,556 5,130,210

Total
5,022,262 726,083 569,293 90,676

Year 6 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
5,022,262 64,003 43,945 7,556 5,066,207 4,958,259 64,563 43,385 7,556 5,001,643 4,893,695 65,128 42,820 7,556 4,936,515

April
4,828,567 65,698 42,250 7,556 4,870,817

May
4,762,869 66,273 41,675 7,556 4,804,544

June
4,696,596 66,853 41,095 7,556 4,737,692

July
4,629,744 67,438 40,510 7,556 4,670,254

August September October November December
4,562,306 68,028 39,920 7,556 4,602,226 4,494,278 68,623 39,325 7,556 4,533,603 4,425,655 69,224 38,724 7,556 4,464,379 4,356,431 69,829 38,119 7,556 4,394,550 4,286,602 70,440 37,508 7,556 4,324,110

Total
4,216,162 806,100 489,276 90,676

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83

Year 7 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
4,216,162 4,145,105 4,073,427

April
4,001,122

May
3,928,183

June
3,854,607

July
3,780,387

August September October November December
3,705,517 3,629,993 3,553,807 3,476,955 3,399,430

Total
3,321,227

71,057 36,891 7,556

71,678 36,270 7,556

72,306 35,642 7,556

72,938 35,010 7,556

73,576 34,372 7,556

74,220 33,728 7,556

74,870 33,078 7,556

75,525 32,423 7,556

76,186 31,762 7,556

76,852 31,096 7,556

77,525 30,423 7,556

78,203 29,745 7,556

894,935 400,441 90,676

4,253,053

4,181,375

4,109,070

4,036,131

3,962,555

3,888,335

3,813,465

3,737,941

3,661,755

3,584,903

3,507,378

3,429,175

Year 8 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
3,321,227 78,887 29,061 7,556 3,350,288 3,242,340 79,578 28,370 7,556 3,270,710 3,162,762 80,274 27,674 7,556 3,190,437

April
3,082,489 80,976 26,972 7,556 3,109,460

May
3,001,512 81,685 26,263 7,556 3,027,776

June
2,919,828 82,400 25,548 7,556 2,945,376

July
2,837,428 83,121 24,827 7,556 2,862,256

August September October November December
2,754,308 83,848 24,100 7,556 2,778,408 2,670,460 84,581 23,367 7,556 2,693,826 2,585,878 85,322 22,626 7,556 2,608,505 2,500,557 86,068 21,880 7,556 2,522,437 2,414,489 86,821 21,127 7,556 2,435,615

Total
2,327,667 993,560 301,816 90,676

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84 Year 9 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
2,327,667 87,581 20,367 7,556 2,348,034 2,240,086 88,347 19,601 7,556 2,259,687 2,151,739 89,120 18,828 7,556 2,170,567

April
2,062,619 89,900 18,048 7,556 2,080,667

May
1,972,719 90,687 17,261 7,556 1,989,980

June
1,882,032 91,480 16,468 7,556 1,898,500

July
1,790,552 92,281 15,667 7,556 1,806,219

August September October November December
1,698,271 93,088 14,860 7,556 1,713,131 1,605,183 93,903 14,045 7,556 1,619,228 1,511,280 94,724 13,224 7,556 1,524,504 1,416,556 95,553 12,395 7,556 1,428,951 1,321,003 96,389 11,559 7,556 1,332,562

Total
1,224,614 1,103,054 192,322 90,676

Year 10 Period (Month) Principals Installment debt payment Interest expense VAT (7%) Total debt purchasing January February March
1,224,614 97,233 10,715 7,556 1,235,329 1,127,381 98,083 9,865 7,556 1,137,246 1,029,298 98,942 9,006 7,556 1,038,304

April
930,356 99,807 8,141 7,556 938,497

May
830,549 100,681 7,267 7,556 837,816

June
729,868 101,562 6,386 7,556 736,254

July
628,306 102,450 5,498 7,556 633,804

August September October November December
525,856 103,347 4,601 7,556 530,457 422,509 104,251 3,697 7,556 426,206 318,258 105,163 2,785 7,556 321,043 213,095 106,083 1,865 7,556 214,960 107,012 107,012 936 7,556 107,948

Total
0 1,224,614 70,762 90,676

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85

CHAPTER 6 Risk Management
Risk concerns the expected value of one or more results of one or more future events. Technically, the value of those results may be positive or negative. Risk may occur under many limited of recourses both inside and outside the company such as company’s decision, budget, time, or special technical. However, general usage tends focus only on potential harm that may arise from a future event, which may accrue either from incurring a cost ("downside risk") or by failing to attain some benefit ("upside risk"). Risk can occur all the time from uncertainty of company’s environment and the limit of resources so the company have to find the causes of risk and try to face or reduce it to work with the potential performance and meet the company’s goal.

Risk is defined in the different meaning but overall it will mean the effect of the company that doesn’t meet the expectations, uncertainties or the opportunity. The result of risk may lead to company’s problems, losses from unwanted or chance something will happen that will affect the business activities or plans. Nature of risk may be divided into 4 main categories include.

1. Business Risk is the changes or uncertain of the ability of company’s profitability

2. Market Risk is the loss of investments due to changes in prices of properties which is

based on demand and supply of market.

3. Interest Rate Risk is the arising from changes in the rate of return on investment due

to the changing of market interest rates.

4. Purchasing Power is from the arising of purchasing power of money is down. Which

primarily affect of purchasing power is inflation.

In generally, risk can define in 2 factors are External Forces and Internal Forces. The external forces are technological change, customer needs, economic condition, laws and regulations, government stability, competitive condition, money and capital markets, foreign Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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86 exchange market, labor market and catastrophe. The internal forces are operating risk, technological risk and financial risk.

Business risk
Business risk is the internal risk from the changing or uncertain of unexpected results which related with the return on investment of the company properties. The factors of business risk as follow:

1. Demand Variability: If demand of purchasing power is lower. It will lead to risk to the company. In other side, if the company has the number of sales and the certainty of selling price that will reduce the occurring of the risk. 2. Sale price variability is the change of price. The reducing prices to get the high number of sales may be the factors of occurring risk to the company. 3. Input cost variability is the changing in company’s costs. In the case of operating costs or the cost of ordering or importing any products from outside has the high uncertainty of price so the level of risk is higher also. 4. Ability to adjust output prices for change in input costs is the ability of the company to adjust prices when the cost of services or production increases. In the businesses world, they need to adjust the selling price to get the high return on investment and profit back to the company. The adjust prices in higher may be the cause of high risk to face with the competitors. 5. Fixed costs are the obligation to the company. If the percentage of fixed cost is high but the demand of the product is low. It may rise the high percentage of occurring risk to the company.

Moreover, the company can divide risk that will effect to the company in 5 categories. The company searches for the solutions for facing risk in the operation level such as operating risk, market risk, financial risk and management Risk

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87 1. Operation Risk

The nature of risk in recycling company could cause accidents and damage to the separating people, machines, chemicals or environmental equipment. Reasons may come from the people, machine, operation system and equipment. The company will reduce the risk by create the good environment of working place, insurance, training, operational preparation methods and management system. As well as take care of the machines and people in the company. All process should do in management system for reducing the impact of risk that will occur to the company.

2. Market Risk

Marketing risk is the risk that customers who do not pay money for product or service to the company. Sri Cha Learn Company has taken measures to prevent this cause by checking the history of customers by using customer relationship management and research the condition of the market. It can help the company to reduce the possibility that risk.

3. Financial Risk

The increasing of risk that relate to the finance structured and cost of capital which may be added to the business. Increasing of interest rates may affect to the profit and loss of business, company activities or increase time to pay back to investor. Moreover, the result of increasing from the tax rate, the company will have to pay more when company revenue increased. Moreover, the foreign exchange rate changes may effect to the supply and demand of the company. The economic conditions, economic policies also affect the results of earnings money from investors. Sri Cha Learn Company will reduce the result of financial risk by doing research and forecasting of economic trade in global recycling market.

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88 Risk financial analysis

Sales decrease 5 % Year 1 Revenue Year 2 Revenue Year 3 Revenue Year 4 Revenue Year 5 Revenue = = = = = 2,997,352 3,596,453 3,752,820 3,815,367 3,909,188 Baht Baht Baht Baht Baht

From sales decrease 5% it makes income statement follow as: Income Statement Year 1 Income Statement Year 2 Income Statement Year 3 Income Statement Year 4 Income Statement Year 5 = = = = = -265,333 374,475 553,149 710,421 795,682 Baht Baht Baht Baht Baht

Sales decrease 10 % Year 1 Revenue Year 2 Revenue Year 3 Revenue Year 4 Revenue Year 5 Revenue = = = = = 2,843,045 3,262,821 3,411,131 3,470,455 3,559,442 Baht Baht Baht Baht Baht

From sales decrease 10% it makes income statement follow as: Income Statement Year 1 Income Statement Year 2 Income Statement Year 3 Income Statement Year 4 Income Statement Year 5 = = = = = -412,465 92,032 272,510 422,503 508,646 Baht Baht Baht Baht Baht

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89 Sales decrease 15 % Year 1 Revenue Year 2 Revenue Year 3 Revenue Year 4 Revenue Year 5 Revenue = = = = = 2,688,738 2,945,305 3,085,558 3,141,659 3,225,810 Baht Baht Baht Baht Baht

From sales decrease 15% it makes income statement follow as: Income Statement Year 1 Income Statement Year 2 Income Statement Year 3 Income Statement Year 4 Income Statement Year 5 = = = = = -559,596 -214,487 -20,464 147,692 234,833 Baht Baht Baht Baht Baht

4. Management Risk

Risk management issues from wrong management process or wrong decision. That could cause the accidents to the employee, get loss or any problems in the company. This may affect the cost and revenue earnings to the company, which is delicate and complex. SriChaLearn Company solve this problem by training the employee, give the satisfaction salary, controls the operating process and separate responsibilities (Segregation of Duty) of employee to the impact of working.

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90

Risk assessment
Risk Assessment is an important process in risk management. This process will focus on opportunities and assess the severity of the incident to the objective. While one event may result in low risk but one event may have an impact on high-level objectives. The generally risk assessment can be made both in qualitative and quantitative evaluation. Based on the incident from both inside and outside the organization, the company also should assess the risk before risk management (Inherent Risk) and after risk management (Residual Risk).

Planning for the risks that will occur in your business is critical to your success. Here are some basic steps to help you make certain you have an adequate risk program in place.

How to Manage Risk in Your Business Planning for the risks that will occur in your company is critical to your success. Here are some basic steps to help you make certain you have an adequate risk program in place. To manage risk in your business: 1. Write your business plan. 2. Go through your business plan critically looking at every area that could involve risk, making a list of what areas you need to consider. 3. Take time, preferably with others who know your business, to brainstorm all the possible catastrophes that might occur. 4. From your lists developed in steps 2 and 3, decide what action or coverage is needed to handle that possibility. 5. For those risks that can be handled by insurance coverage, determine how much and what type of insurance is needed. 6. Choose a reasonable amount of insurance to cover those risks. 7. Contact more than one insurance agent to get quotes on the insurance that is needed. 8. Arrange for insurance coverage to begin before the doors open on your business, if possible.

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91 9. For those risks not covered by insurance, put together a contingency plan for handling each of the risks identified. 10. Train all employees in what to do in any if any of these (or other) emergencies arise. 11. Put your plan in a place where it can be located quickly, if needed. Have an extra copy in a safe location. 12. Review your plan annually, including input from all employees.

Risk Management Tools The most common tool used in risk management is insurance. Besides the standard health, life, and possibly disability insurance, you need to look at the types of liability and property insurance you may need. Specialized insurance for particular risks in your business can also be necessary. For instance, if you have a chemical component of your production process, you may want special toxic risk insurance. Think comprehensive, and then pare it down to fit the level of risk you are comfortable with. Many people prefer a comprehensive policy that has a large deductible which reduces the cost of the policy.

As with any purchase, get a number of quotes - and don't choose the cheapest one. No two policies are identical. Look carefully at the pluses and minuses of each policy, the agent, and the insurance company before making a decision. Be certain to arrange for the insurance coverage to start before you open for business. This seems like common sense, but in the rush to get money coming in the door it is often put off. It may take some time for the policy to be written if valuations need to completed or other information checked. Do not expect to decide and have a policy in place the next day.

You still need to deal with those risks you didn't insure against. Each needs a contingency plan; i.e., what are you going to do if this event happens? Write the plan down. Then train every employee what to do in the event something unexpected happens. If a robber comes in and demands the cash in the cash register, what action should they take? If the computer shuts down and won't reboot, what do they do? Put the plan in a place that it is easily accessible and have an extra copy in a safe location. Additionally, you will want a

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92 good accounting and financial control information system to alert you to problems that might be arising in cash flow, thefts, fraud, or other financial trouble spots in the business.

Your insurance and your contingency plans are your risk management system. Don't just put them in a safe place, however. Make it an annual commitment to review the system and update it as necessary. No startup is a static venture. Likewise the components of the startup should also not be static. Involve your employees as much as possible. They, more than anyone, can spot the flaws that can be tomorrow's disaster.

Should you need additional financing at some point, having a good risk management system in place will impress the lender and may make the difference in obtaining the funds your need. In fact, a good risk management system should provide the information you need to know exactly when you need to seek additional financing and give you as very clear picture of what your needs will be. It can be an information system about how your business is doing as well as a system to control risk.

Source: http://www.siaminfobiz.com/mambo/content/view/45/27/ http://www.tsi-thailand.org/wiki/index.php http://www.smallbusinessnotes.com/operating/finmgmt/htrisk.html http://www.smallbusinessnotes.com/operating/finmgmt/riskmgmt/risktools.html

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93

CHAPTER 7 Summary

1. Background and Reason Are you one of the few people that recycle? If not, do you know where all your garbage goes? 85 percent of our trash is sent to landfills. That's a very high percent and trend to increase waste volumes every year. In turn in Thailand, it happen the same. Sri-Cha-Learn Recycling Company has collected the information about the quantity of waste and the number of recycle business in ChiangRai from the reliable institution. According to the quantity of waste in ChiangRai, the company sees the opportunity to do waste recycle business. The number of waste is increasing continuously in each year. Moreover, this kind of business gets less attention from the entrepreneurs and there is not junk shop enough in ChaingRai compare to quantity of wastes. Waste recycling business can generate high profits to entrepreneur.

Product/Service There are many kinds of recycling waste that our shop purchased to the process of recycling. The importance factors that we concerns are the safety of products and human, transportation and regulation. The product that our shop purchased will be as follow: steel, plastic, bottle and paper. In turn, “Best service with smile”, the company has to make the customer’s loyalty by creating the impression to the customer by services such as service satisfaction over quickly, clean and good workplace or pay money on time.

2. Business Environment The company focuses on the Macroeconomic which will effect directly to the company, it consist of the political, economy, social and environment, technology and competitors. The company analyzes the external environment to find the opportunity for doing the business and protect the company from the unexpected situation. With the potential information and good plan, it help the company can face with the highly competition and meet the company’s goal.

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94 3. Human Resource This is the structure of employee inside the company which manages people to respond all tasks. The number of employee each role will be the most suitable and worthiest compare to administration cost. The company will plan to give the training job for employees. Roles Quantity General Manager 1 Specialist Accountant 1 Specialist Technician 1 Public Relation and Customer Service 1 Machinery Professional 6 Metal cutter 3 Filler piece versatile machine 3 Scale and Weight Machine 1 Professional Specialist Product Separation 3 Truck Driver Professional 1 Excavator and Forklift Driver 1 Professional Total 16

4. Marketing Marketing Mix: Product, the main product of the company is recyclable products. The company will buy waste from scavenger or small waste recycle store and sell them to the factory to get into processing of recycle. Price, it will depend on the price in the market in Bangkok but the company may adjust to suitable for Chiang Rai market. The company will set better price at beginning of market to attract customer and increase market share. Refer to Price differentiation strategy. Place, Sri-Cha-Learn is located Maekorn sub district where has the large area for collecting inventories, near the city, convenience transportation, clean workplace, and good environment. Promotion, the company will advertise on radio, poster and brochure to promote the company. Moreover, words of mouth will be the good way also.

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95 5. Production Processing

First step

Second step

Last step

First step, required for recycling is collecting recyclable materials from customers. The second step, involves processing the recyclable materials. This includes sorting the materials into groups (separate), cleaning them and getting them ready with the high technology machines. The last step, sold to manufacturers who will turn the materials into new products.

6. Risk Management - Operation Risk Reasons may come from the people, machine, operation system and equipment. Sri Cha Learn company will reduce the risk by create the good environment of working place, insurance, training, operational preparation methods and management system. Market Risk Marketing risk is the risk that customers who do not pay money for product or service to the company. Sri Cha Learn Company has taken measures to prevent this cause by checking the history of customers by using customer relationship management and research the condition of the market. Then, the company will use differentiation strategy to create advertising and promotion. - Financial Risk Sri Cha Learn Company will hire Specialist Accountant to take care of financing system. In case of increasing of interest rates, decreasing of price and getting down of sales. The company will reduce the result of financial risk by doing research and forecasting of economic trade in global recycling market. In financial, company has an 8,000,000 to invest in beginning dividend as fixed asset 6,379,200 Baht and cost before operation 1,620,800. The company loan money about Project Feasibility Study and Evaluation 1203302 Mae Fah Luang University, ChiangRai, Thailand
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96 8,000,000 baht by interest 10.5% per year in 10 years. The sales forecast of company in year 1 to year 5 increasing follow as:

Sales

Year 1

= = = = =

3,151,659 3,946,199 4,110,624 4,176,394 4,275,049

Baht Baht Baht Baht Baht

Sales Year 2 Sales Year 3 Sales Year 4 Sales Year 5 statement in each year follow as: Income Statement Year 1 Income Statement Year 2 Income Statement Year 3 Income Statement Year 4 Income Statement Year 5

From sales forecast of Sri Cha Learn company, it makes the company has income

= = = = =

- 118,201 661,431 847,023 1,011,792 1,095,944

Baht Baht Baht Baht Baht

From financial forecast of business as 5 years, the pay back period of Sri Cha Learn equal 2 years 7 months.

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