Category Fee (₹)

One-time fees
Form and registration fees 500
Admission fees 2,000
Caution money* 1,500
Total one-time fees 4,000
Annual fees
Kit charges 1,300
Activity charges 2,500
Annual charges 2,500
Tuition fees 10,000
Total annual fees 16,300
Total fees 20,300
Total fees without caution
18,800
money
 Category Fee (₹)
Affiliation fee 125,000
Set-up cost (classroom furniture, interior
decoration, education and play equipment, 350,000
printing and advertising material)
Other capital investments* 110,000
Service tax on affiliation fees (12.36%) 15,450
Training fee 24,000
Total 624,450
 Terminal CF 0
Salvage value 0
Recovery of WC 0
initial investment 624,450 Salvage value* Tc 0
Tax rate 20%
Salvage 0
Recovery wc 0
0 1 2 3 4
Initial investment 624,450
Sales 658,000 877,500 1,404,000 1,404,000
Expense 516,000 675,000 966,000 966,000
EBIT 142,000 202,500 438,000 438,000
Interest on caution money 4,200 6,000 9,600 9,600
Interest on borrowed funds 90,000 90,000 90,000 90,000
Earnings before tax 56,200 118,500 357,600 357,600
Tc (20%) 11240 23700 71520 71520
Earnings after tax 44,960 94,800 286,080 286,080
OCF 44,960 94,800 286,080 286,080

Terminal CF
CF -624,450 44,960 94,800 286,080 286,080
Discount rate 12%
Discount factor 1 0.8929 0.797 0.712 0.636
CF after discount -624,450 40,143 75,574 203,626 181,809
NPV 39,031
IRR 13.9475%
 WACC 12%

5
WACC kd*(1-Tc) Kd 0.15
1,404,000 0.12
966,000
438,000
9,600
90,000
357,600
71520
286,080
286,080

0
286,080

0.567
162,329
 Terminal CF 0
Salvage value 0
Recovery of WC 0
initial investment 624,450 Salvage value* Tc 0
Tax rate 30%
Salvage 0
Recovery wc 0
0 1 2 3 4
Initial investment 624,450
Sales 658,000 877,500 1,404,000 1,404,000
Expense 536,000 695,000 986,000 986,000
EBIT 122,000 182,500 418,000 418,000
Interest on caution money 4,200 6,000 9,600 9,600
Interest on borrowed funds 90,000 90,000 90,000 90,000
Earnings before tax 36,200 98,500 337,600 337,600
Tc (30%) 10860 29550 101280 101280
Earnings after tax 25,340 68,950 236,320 236,320
OCF 25,340 68,950 236,320 236,320

Terminal CF
CF -624,450 25,340 68,950 236,320 236,320
WACC 11%
Discount factor 1 0.9050 0.819 0.741 0.671
CF after discount -624,450 22,932 56,469 175,151 158,508
NPV -67,943
IRR 7.0536%
 5
WACC kd*(1-Tc) Kd 0.15
1,404,000 0.105
986,000
418,000
9,600
90,000
337,600
101280
236,320
236,320

0
236,320

0.607
143,446