A.

Land, Building & Construction

S.N Description of works UOM
land preparation & site devt ha
office and residence m2
werehouse m2
green area, garage & parking ha
Irrigation system & infra structure devt ha
power requirement & supplay
1 Design and supervision
fences 1,000,000.00
4 1st Year land lease & (10%) down payment 580000

Total

B. Farm Machineries and Equipments

SN Description Measurement

1 Hoes no
2 Spades “
3 Axles “
4 Water pump “
5 Workers home equipment LS
6 Other Agri. Equipment LS
7 Tractor no
8 Trailer no
9 Plough no
10 Ridger no
11 Cultivator no
12 Disc Hallow no
13 Corn-Sheller no
14 Seed drill no
15 Seed bed no
16 Weeding comb no
17 Harvester and Combiner no
18 Manual spray no
19 Bale collector no
Total
 C .Vehicle
SN Description UOM

FSR ISUZU Trucks 2

Pick up 1
workers service buss 1
motorcycle 3
Total

D. Office Equipments
SN Description Measurement

1 Managerial tables Unit

2 Managerial chairs Unit
3 Office table with chair Unit
4 Secretarial table with chairs Unit
5 Computer with chairs Unit
6 Shelf Unit
7 Filing cabinets Unit
8 Guest chairs Unit
9 Fax & Telephone machine Unit
10 Carpet and Curtain LS
Total

a. salary Expense

SN Position No

1 Permanent workers 1

Farm Head 1

Purchaser 2
Secretary 1
Supervisors 3
Store keeper 2
2 Production Workers 60

Marketing head 2
 Sales workers 7
Guards 6
2 Sanitary 6
3 Administration and Finance head 1
6 General service 1
4 Accountant 2
Mechanics 1
5 Cashier 3
Driver 3
Assistant driver 2
Agri. Machines operators 5
Gardner 1
Sub-total 109
Benefits(20)
Total
Benefit (20%)
Grand Total

direct operating coast

i.                    Agricultural machineries and
tractor fuel cost

SN Type of crop Area (Ha)

1 wheat 495
Total 230
Total in two season 495

i.                    improved seed requirement and cost

SN Type of crop Area (Ha)

1 wheat 495
Total 495
Total in two season

iii. Fertilizer requirement and cost

SN Type of crop Area (Ha)

1 wheat 495
 Total 495
Total in two season

iv. Chemical requirement Herbicide (HC) and Pesticides (PC) and Cost

SN Type of crop Area (Ha)

1 wheat 495
Total 495
Total in two season

V. Labor requirement and cost

SN Type of crop Area (Ha)

1 wheat 495
Total 495
Total in two season

2. Indirect cost (other operating Expense)

Annual total cost in

SN List of item
br
2 Packaging and materials 128,000.00
3 Insurance 119,454.00
4 Stationary materials 12,000.00
5 Cleaning materials 30,000.00
6 Water 11,000.00
7 Electricity 27,300.00
9 Oil and Lubricant 273,240.00
10 Telephone 18,000.00
advertising 10,000.00
11 Repair expense with spare parts 379,646.58
12 Miscellaneous costs 120,000.00
Total 1,128,640.58

5.1.1  over all Operating Expenses ( direct+ indirect)

 SN List of Items Annual cost in birr

direct operating coast

indirect operating coast
Total

5.1.1   Pre-service Expenses

SN Description Cost in birr
1 Project proposal & EIA 50,000.00
2 Licensing fee and others
Total 50,000.00

Summary of Total initial investment cost

SN Description Cost in Birr
1 Land, building & construction 11,945,400.00
2 machines & Equipments 9,136,189.00
3 Vehicle 5,605,000.00
4 Office Equipment 327,000.00
Total fixed investment cost 27,013,589.00
6 Salary expense 4,333,824.00
7 Operation Expense 191,020,540.58
8 Pre service Expense 50,000.00
Total Working capital 195,404,364.58
Sub total 222,417,953.58
11 Contingency (10%) 22,241,795.36

Total initial investment capital 244,659,748.94

5.1.1   Depreciation Schedule

SN Description Original Value in Birr

1 Construction and Building 1,580,000.00

2 Bldg. machines & Equipments 9,136,189.00
3 Vehicle 5,605,000.00
4 Office Equipment 327,000.00
Total 16,648,189.00
Rental Income
Revenue Year 1
Sell 245,520,000.00

Expenses
Salary Expense 4,333,824.00
Operating Expenses 191,020,540.58
Deprecation Bld. Machineries ,Equiq & vehicle 1,384,568.90

Interest Expense3 14,557,255.06

Lease payment4 58,000.00

Total Expense 211,354,188.54

Profit before Tax 34,165,811.46
Tax (30%) 10,249,743.44
Net profit 23,916,068.02

lease price/m2
116

Balance sheet

Year Year 0
Equity Capital 73397924.6814
Loan principal 171261824.2566
Net sale 0
Total Cash in flow 244,659,749
Cash payment
Salary Expense 0
Investment 27,013,589
Pre operating Expense 50,000
Operating Cost 0
Loan repayment 0
Lease payment 0
Tax payment 0
Total payment 27,063,589.00
Cash surplus/ deficit 217,596,159.94
Cumulative cash flow 144,198,235.26

Annex 1. Sales Revenue

Description

Ground floor Rent

Size
unit price
Rent for shop and office 1-3
floor
Size
unit price
Rent for shop and office3
floor
Size
unit price
Total Sale

Annex 2. operating cost

Description

A. Direct cost
Raw Material Cost
Sub-total
Total Direct cost
B. Indirect cost
w  Wages and Salary
w  Repair and Maintenance

w  Property Insurance
w  Utility
w  Land lease
w  Advertising and Promotion

w  Miscellaneous Expense
Total operating cost

Annex.3 income statement

Description
Sales Revenue
Less: Operating cost
Income before Depreciation and
interest
Less: interest
Income before Depreciation
Less: Depreciation
Profit /Loss Before Tax
Less: Tax (30%)
Net Profit or Loss After Tax

Annex. 4 loan disturbance

Item
Loan disbursed
Principal
Interest (13%)
Total
Outstanding Balance

Description
INFLOW
Net sales revenue
TOTAL INFLOWS
OUTFLOWS
Investment cost

Operating cost
Income tax
TOTAL OUTFLOWS
NET CASH FLOW

Description
INFLFOWS
Inflow Funds
Own Equity
Long-term Loan
Inflow Operations
Sales revenue
TOTAL INFLOWS
OUTFLOWS
Investment cost
Operating cost
Financing Cost
· Principal
·Interest
Income Tax
TOTAL OUTFLOWS
NET CASH FLOW
BEGINNING CASH
BALANCE
ENDING CASH BALANCE
 Unit coast Total Coast in Birr

495 10,000.00 4950000

1000 1,500.00 1500000

3000 1,300.00 3900000

4 5,100.00 20400

3 15,000.00 45000

400,000
200,000.00
350,000.00

580000
11945400
Area Lize Price Project duration 10%
500 116 10 580000

Qty Unit cost in Birr Total cost in Birr.

200 130 26000

100 120 12000
100 200 20000
30 150 4500
1 24000 24000
1 200,000 200000
3 1,000,000.00 3000000
3 336,563.00 1009689
2 210,000.00 420000
2 160,000.00 320000
2 150,000.00 300000
2 235,000.00 470000
2 155,000.00 310000
3 220,000.00 660000
4 170,000.00 680000
3 160,000.00 480000
2 250,000.00 500000
40 2,500 100000
2 300,000 600000
9,136,189.00
Qty Unit Cost in Fr. Total cost in Birr Remark

1,500,000 3000000
1,000,000 1000000
1,305,000 1305000
100,000 300000
5,605,000.00

Qty Unit cost in birr Total cost in Birr

5 3,600.00 18,000.00
5 2,000.00 10,000.00
7 3,000.00 21,000.00
3 2,500.00 7,500.00
3 28,000.00 84,000.00
4 4,500.00 18,000.00
4 3,500.00 14,000.00
5 2000 10,000.00
5 2,500.00 12,500.00
4 33000 132,000.00
327,000.00

Qualification Monthly salary in Annual salary in Birr

Birr
Msc in agronomy 10,000.00 120,000.00

BA in crop production 5000 60,000.00

Diploma in purchasing 1500 36,000.00

management
Diploma in secretariat 1500 18,000.00
Diploma in crop 1500 54,000.00
production
10 +2 in store 1500 36,000.00
management
Basic 900 648,000.00

BA in marketing 5000 120,000.00

10+3 in salesmanship 1500 126,000.00
Basic 700 50,400.00
unskilled 600 43,200.00
BA in 5000 60,000.00
Accounting/manageme
Diploma in 1000 12,000.00
nt
management
BA in Accounting 2500 60,000.00
Diploma in 1750 21,000.00
Automotives
10+2 in Bookkeeping 1200 43,200.00
10 completed 1050 37,800.00
Basic 700 16,800.00
10 completed 1200 72,000.00
Unskilled 600 7,200.00
1,641,600.00 32832000
328,320
3,611,520
722,304
4,333,824

Requirement Total cost in

Unit cost Br/lit Total requirement
lit/hectares Br.
46 20 22770 455,400.00
11516 455,400.00
22770 910,800.00

Requirement Total cost in

Unit cost br/quintal Total requirement
kg/hectares br.
50 4000 247.5 990000
247.5 990000
1980000

Requirement qt/hectares Requirement qt/hectares

DAP UREA DAP UREA

1 1 495 495
 495 495

ticides (PC) and Cost

Requirement LI/hectares Requirement In Li

HC PC HC PC
1 3 495 1485
495 1485

Requirement md Total cost in

Unit cost br/md Total requirement md
/hectares br.

130 50 64,350 3217500

435 64,350 3217500
870 0 128700 6,435,000

Assumption
14,320 qt*br.10
1 % of thefixed cost
Br.1000 per month
Br.2500 per month
5000 m3
50,000 Kw
10 % fuel cost
Br .1,500 per year

2 % of the fixed cost

Br.10,000 per month
 List of Items Annual cost in Assumptions Used
birr

189,891,900
1,128,641
Total 191,020,540.58

Utility Coast
#REF!

Depreciation rate in % Depreciation per year

in Birr
10 158,000.00
10 913,618.90
5 280,250.00
10 32,700.00
1,384,568.90
Year 2 Year 3 year 4 and after
245,520,000.00 276,210,000.00 0.00

4,333,824.00 4,333,824.00 4,333,824.00

191,020,540.58 191,020,540.58 191,020,540.58
1,384,568.90 1,384,568.90 1,384,568.90

13,101,529.56 11,645,804.05 10,190,078.54

58,000.00 58,000.00 58,000.00

209,898,463.04 208,442,737.53 206,987,012.02

35,621,536.96 67,767,262.47 -206,987,012.02
10,686,461.09 20,330,178.74 -62096103.6069803
24,935,075.88 47,437,083.73 -144,890,908.42

Total area (m2) Price/year

500 58000

Year 1 Year 2 Year 3 year 4

245,520,000.00 245,520,000.00 276,210,000.00 0.00

245,520,000.00 245,520,000.00 276,210,000.00 0.00

4,333,824.00 4,333,824.00 4,333,824.00 4,333,824.00

0 0 0 0
0 0 0 0
191,020,540.58 191,020,540.58 191,020,540.58 191,020,540.58
 31,683,437.49 30,227,711.98 28,771,986.48 27,316,260.97
58,000.00 58,000.00 58,000.00 58,000.00
10,249,743.44 10,686,461.09 20,330,178.74 -62,096,103.61
233,011,721.50 231,992,713.65 240,180,705.80 156,298,697.94
12,508,278.50 13,527,286.35 36,029,294.20 -156,298,697.94
12,508,278.50 13,527,286.35 36,029,294.20 -156,298,697.94

es Revenue
 Project year
1 2 3 4
1,100,000 254,400 279,600
2200 600 600 600
500 385 424 466

248,640
1110 1110 1110 1110
224 246 271 298

2,500
500 1110 1110 1110
5 5.5 6.05 6.66
1,351,140 0 254,400 279,600

g cost
Operating years of the project
1 2

189,891,900 189,891,900
189,891,900 189,891,900
189,891,900 189,891,900
5,031,924.58
4,333,824 4,333,824
379,646.58 379,646.58

119,454.00 119,454.00
 11,000 11,000
58,000 58,000
10,000.00 10,000.00

120,000.00 120,000.00
194,923,825 194,923,825

5,031,924.58
194,923,824.58

me statement
Operating years of the project
1 2 3 4
245,520,000 245,520,000 276,210,000 276,210,000
194,923,825 194,923,825 194,923,825 194,923,825

50,596,175 50,596,175 81,286,175 81,286,175

14,557,255.06 13,101,529.56 11,645,804.05 10,190,078.54

36,038,920 37,494,646 69,640,371 71,096,097
0 0 1,384,569 1,384,569
36,038,920 37,494,646 69,640,371 71,096,097
10,811,676.11 11,248,393.76 20,892,111.41 21,328,829.06
25,227,244.25 26,246,252.11 48,748,259.96 49,767,267.81

nex. 4 loan disturbance

Installment Periods (in years )

0 1 2 3
24,158,528
24,158,528
4,486,583 448,658 448,658 448,658
28,645,111 448,658.00 448,658.00 448,658.00

Annex 6. discounted cash flow

Investment Year Project Life years
0 1 2 3

0 245,520,000 245,520,000 276,210,000

0 245,520,000 245,520,000 276,210,000
27,013,589 - - -
0 194,923,825 194,923,825 194,923,825
0 10,811,676 11,248,394 20,892,111
27,013,589 205,735,501 206,172,218 215,815,936
27,013,589.00 39,784,499.31 39,347,781.66 60,394,064.01
NET PRESENT VALUE (NPV)
INTERNAL RATE OF RETURN (IRR)
DISCOUNTED PAYBACK PERIOD (DPBP)

Annex 7 undiscounted cash flow

Project Years
Investment Year Operating years
0 1 2 3

73,397,925
171,261,824 0 0
245,520,000 245,520,000 276,210,000
0 245,520,000 245,520,000 276,210,000
244,659,749 245,520,000 245,520,000 276,210,000

27,013,589 0 0 0
0 194,923,825 194,923,825 194,923,825

0 0 0 0
0 14,557,255 13,101,530 11,645,804
0 10,811,676 11,248,394 20,892,111
27,013,589 220,292,756 219,273,748 227,461,740
0 25,227,244 26,246,252 48,748,260

0 0 25,227,244 51,473,496
0 25,227,244 51,473,496 100,221,756

51,473,496
 139,382

Total
price

40396.5 279,570.67
###
###

###
351,534.40
171,108.00

8 Electrical installation ###

9 Sanitary installation 500,000.00
Subtotal ###
A+B ###
Vat (15%)
###
unit cost in br Total cost in br Total
DAP+UREA
DAP UREA DAP UREA
1500 1200 742500 594000 1,336,500.00
 742500 594000 1,336,500.00
2,673,000.00

unit cost in br/LI Total cost in br

Total HC+PC
HC PC HC PC
250 200 123750 183768750 183892500
123750 183768750 183892500
367785000
Repair and Maintenance Cost

Source of Fund
Owners 30% 73397924.6814
equity
Bank loan 70% 171261824.2566
Total 100% 244,659,748.94

Bank Repayment sc
 Total
annual
Payment
Principal year ending
year payment intrest rate(8.5%) in ETB balance
0 171261824.2566

1 17126182.43 14557255.061811 31683437.5 154135641.8309

2 17126182.43 13101529.5556299 30227712 137009459.4053
3 17126182.43 11645804.0494488 28771986.5 119883276.9796
4 17126182.43 10190078.5432677 27316261 102757094.554
5 17126182.43 8734353.0370866 25860535.5 85630912.1283
6 17126182.43 7278627.5309055 24404810 68504729.70264
7 17126182.43 5822902.0247244 22949084.5 51378547.27698
8 17126182.43 4367176.5185433 21493358.9 34252364.85132
9 17126182.43 2911451.0123622 20037633.4 17126182.42566
10 1455725.5061811 0

Production Per ha

Total loan= 171261824.3

Repayment ra10year
Annual intrest 8.50%

wheat

year Production unit price/ktl total price

/ktl

1 61380 4000 245520000

2 61380 4000 245520000
3 61380 4500 276210000
4 61380 4500 276210000
5 61380 4500 276210000
6 61380 4500 276210000
7 61380 4500 276210000
8 61380 4500 276210000
9 61380 4500 276210000
10 61380 4500 276210000
 Project year
5 6 7 8 9 10
307,200 338,400 372,000 409,200 450,000 495,000
600 600 600 600 600 600
512 564 620 682 750 825

1110 1110 1110 1110 1110 1110

328 361 397 437 480 528

1110 1110 1110 1110 1110 1110

7.32 8.05 8.86 9.74 10.72 11.79
307,200 338,400 372,000 32,530,910 35,784,000 39,037,721

3 4 5

189,891,900 189,891,900 189,891,900

189,891,900 189,891,900 189,891,900
189,891,900 189,891,900 189,891,900

4,333,824 4,333,824 4,333,824

379,646.58 379,646.58 379,646.58

119,454.00 119,454.00 119,454.00

 11,000 11,000 11,000
58,000 58,000 58,000
10,000.00 10,000.00 10,000.00

120,000.00 120,000.00 120,000.00

194,923,825 194,923,825 194,923,825

5 6 7 8 9 10
276,210,000 276,210,000 276,210,000 276,210,000 276,210,000 276,210,000
194,923,825 194,923,825 194,923,825 194,923,825 194,923,825 194,923,825

81,286,175 81,286,175 81,286,175 81,286,175 81,286,175 81,286,175

8,734,353.04 7,278,627.53 5,822,902.02 4,367,176.52 2,911,451.01 1455725.5061811

72,551,822 74,007,548 75,463,273 76,918,999 78,374,724 79,830,450
1,384,569 1,384,569 1,384,569 1,384,569 1,384,569 1,384,569
72,551,822 74,007,548 75,463,273 76,918,999 78,374,724 79,830,450
21,765,546.71 22,202,264.37 22,638,982.02 23,075,699.67 23,512,417.32 23,949,134.97
50,786,275.67 51,805,283.52 52,824,291.38 53,843,299.23 54,862,307.09 55,881,314.94

4 5 6 7 8 9

3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

448,658 448,658 448,658 448,658 448,658 448,658
3,899,876.00 3,899,876 3,899,876 3,899,876 3,899,876 3,899,876

flow

4 5 6 7 8 9

276,210,000 276,210,000 0 0 0 0
276,210,000 276,210,000 0 0 0 0
 - -
- - - -
194,923,825 194,923,825 194,923,825 194,923,825 194,923,825 194,923,825
21,328,829 21,765,547 22,202,264 22,638,982 23,075,700 23,512,417
216,252,654 216,689,371 217,126,089 217,562,807 217,999,524 218,436,242
59,957,346.36 59,520,628.71 -217,126,088.95 ### -217,999,524.25 -218,436,241.90
54,439,417.00
34.13%
P) 3.9years

Annex 7 undiscounted cash flow

4 5 6 7 8 9

276,210,000 276,210,000 0 0 0 0
276,210,000 276,210,000 0 0 0 0
276,210,000 276,210,000 0 0 0 0

0 0 0 0 0 0
194,923,825 194,923,825 194,923,825 194,923,825 194,923,825 194,923,825

17,126,182 17,126,182 17,126,182 17,126,182 17,126,182 17,126,182

10,190,079 21,765,547 7,278,628 5,822,902 4,367,177 2,911,451
21,328,829 8,734,353 22,202,264 22,638,982 23,075,700 23,512,417
243,568,915 242,549,907 241,530,899 240,511,891 239,492,883 238,473,875
32,641,085 33,660,093 -241,530,899 -240,511,891 -239,492,883 -238,473,875

100,221,756 132,862,842 166,522,935 -75,007,964 -315,519,855 -555,012,738

132,862,842 166,522,935 -75,007,964 -315,519,855 -555,012,738 -793,486,614
 Prodcn Total
Area qnt/ha producn unit prce total sell
wheat 495 62 61380 4000 245520000

495 62 61380 4000 245520000 491040000

6 7 8 9 10

189,891,900 189,891,900 189,891,900 189,891,900 189,891,900

189,891,900 189,891,900 189,891,900 189,891,900 189,891,900
189,891,900 189,891,900 189,891,900 189,891,900 189,891,900

4,333,824 4,333,824 4,333,824 4,333,824 4,333,824

379,646.58 379,646.58 379,646.58 379,646.58 379,646.58

119,454.00 119,454.00 119,454.00 119,454.00 119,454.00

11,000 11,000 11,000 11,000 11,000
58,000 58,000 58,000 58,000 58,000
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

120,000.00 120,000.00 120,000.00 120,000.00 120,000.00

194,923,825 ### ### 194,923,825 194,923,825

10

3,451,218
448,658
3,899,876

10

0
0
-
194,923,825
23,949,135
218,872,960
-218,872,959.55 -830,993,301.21

10

0
0
0

0
194,923,825

17,126,182
1,455,726
23,949,135
237,454,867
-237,454,867

-793,486,614
-1,030,941,481
,891,900
,891,900
,891,900

33,824
,646.58

,454.00
000
000
000.00

,000.00
,923,825
total sell
0
0
0
0
0
0
0
0
0
0
 5.1              fixed Investment

A.     Land, Building & Construction

S.N Description of works Total Cost in birr

1 Building construction 27,152,958.40
2 Site Development 50,000
3 Design and supervision 120,000.00
4 1st Year land lease 422,640
Total 27,745,598.40

B.     Building Machineries and

Equipments

SN Description Measurement Qty

1 Generator Unit 1
2 Carpentry tool box Set 1
3 Electrician tools box Set 1
4 Plumber tools kit Set 1
5 Fire extinguisher Unit 12
(Security Equipment)
6 Elevator Unit 1
Total

c      Vehicle

SN Description UOM Qty

1 Mini-Bus Unit 1

Total

D      Office Equipments

SN Description Measurement Qty

1 Managerial tables Unit 1

2 Managerial chairs Unit 1
3 Office table with chair Unit 7
4 Secretarial table with chairs Unit 1
5 Computer with chairs Unit 1
6 Shelf Unit
7 Filing cabinets Unit 1
8 Guest chairs Unit 1
9 Fax & Telephone machine Unit 1
10 Carpet and Curtain LS 1
Total

Working Capital

Operating Expenses

SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 48,000.00 4000 br/per ,month

2 Stationery supplies 12,000.00 1000 br/month

3 Promotional Cost 40,000.00 Lump sum annual cost
4 Property Insurance 84,009.00 1% of the building
5 Cleaning Supplies 12,000.00 1000 br. Per month

6 Uniforms 12,000.00
7 Water consumption 5,000.00 2500 m3 by 3.15 br
8 Electric consumption 130,000.00 100,000KWH By Br.1.30
9 Fuel 38,000.00 2000 lit per year by Br.19

11 Telephone & fax 20,000.00 1800 per month

12 Repair expense 72,018.00 2% of building cost
13 Miscellaneous costs 40,000.00 6000 per month
Total 513,027.00

Pre-service Expenses

SN Description Cost in birr

1 Project proposal 100,000.00
2 Licensing fee and others
Total 100,000.00

Summary of Total initial investment cost

SN Description Cost in Birr Percentage Share
1 Land, building & construction 27,745,598 80.39%
2 Building machines & Equipments 1,299,800.00 3.77%
3 Vehicle 300,000.00 1%
4 Office Equipment 101,800.00 0.29%
5 Total fixed investment cost 29,447,198.00 85.32%
6 Salary expense 1,238,400.00 3.59%
7 Operation Expense 513,027.00 1.49%
8 Pre service Expense 100,000.00 0.29%

9 Total Working capital 731,836.00 2.12%

10 Sub total 4,604,532.00 7.49%
11 Contingency (10%) 460,453.20

Total initial investment capital 34,512,183.20

Unit cost in Total cost in
Birr Birr.
300,000.00 300,000.00
27,000.00 27,000.00
18,500.00 18,500.00
12,300.00 12,300.00
16,000.00 192,000.00

750,000 750,000
1,123,800 1,299,800

Unit Cost in Total cost in Remark

Fr. Birr
300,000.00 300,000.00 Duty Free

300,000.00

Unit cost in Total cost in

birr Birr
12,600.00 12,600.00
19,500.00 19,500.00
12,000.00 12,000.00
8,500.00 8,500.00
15,000.00 15,000.00
3,500.00 3,500.00
1,500.00 1,500.00
4900 4900
1,300.00 1,300.00
23,000.00
101,800.00
Annex 1. Sales Revenue
Description
1 2
Ground floor Rent 9,240,000 10,164,000
Size 1110 1110
unit price 350 385
Rent for shop and office
1-3 floor 2,956,800 3,252,480
Size 1110 1110
unit price 224 246
Rent for shop and office
4-7 floor 2,890,800 3,179,880
Size 1110 1110
unit price 219 241
Rent for shop and office
8-12 floor 1,980,000 2,217,600
Size 1110 1110
unit price 150 165
Parking 91,250 100,375
Size 1110 1110
unit price 5 5.5
Total Sale 17,158,850 18,914,335

Annex 2. operating cost

Description 1
A. Direct cost
Raw Material Cost 513,027
Sub-total
Total Direct cost
B. Indirect cost
w  Wages and Salary 1,238,400
w  Repair and 667,449.00
Maintenance
w  Property Insurance 4,275.00
w  Utility 1,188,000
w  Land lease 422,640
w  Advertising and 50,000.00
Promotion
w  Miscellaneous 40,000.00
Expense
Total operating cost 4,123,791

Annex.3 income statement

Operating years of the project
Description 1 2
Sales Revenue 17,158,850 18,914,335
Less: Operating cost 4,123,791 4,270,766
Income before Depreciation 13,035,059 14,643,569
and interest
Less: interest 448,658.00 448,658.00
Income before Depreciation 12,586,401 14,194,911

Less: Depreciation 0 0
Profit /Loss Before Tax 12,586,401 14,194,911
Less: Tax (30%) 3,775,920.30 4,258,473.30
Net Profit or Loss After Tax 8,810,480.70 9,936,437.70

Annex. 4 loan disturbance

Installment Periods (in years )

Item 0 1
Loan disbursed 24,158,528
Principal 24,158,528
Interest (13%) 4,486,583 448,658
Total 28,645,111 448,658.00
Outstanding Balance

Annex 6. discounte

Investment Year
Description 0 1
INFLOW
Net sales revenue 0 17,158,850
TOTAL INFLOWS 0 17,158,850
OUTFLOWS
Investment cost
34,512,183 -
 Operating cost 0 4,123,791
Income tax 0 3,775,920
TOTAL OUTFLOWS 34,512,183 7,899,711
NET CASH FLOW 10,850,695.00 9,259,139.00

Annex 7 undiscounted cash f

Investment
Year
Description 0 1
INFLFOWS

Inflow Funds
Own Equity 10,353,655
Long-term Loan 24,158,528 0
Inflow Operations 17,158,850
Sales revenue 0 17,158,850
TOTAL INFLOWS 34,512,183 17,158,850
OUTFLOWS
Investment cost 34,512,183 0
9,936,438 Operating cost 0 4,123,791
1,588,069 Financing Cost
· Principal 0 0
8,977,897 ·Interest 0 448,658
Income Tax 0 3,775,920
TOTAL OUTFLOWS 34,512,183 8,348,369
8,977,897 NET CASH FLOW 0 8,810,481
BEGINNING CASH
BALANCE 0 0
ENDING CASH BALANCE
0 8,810,481
388500 427350
  Project year
3 4 5 6 7 8 9
11,180,400 12,298,440 13,528,284 14,881,112 16,369,224 18,006,146 19,806,761
1110 1110 1110 1110 1110 1110 1110
424 466 512 564 620 682 750

3,577,728 3,935,501 4,329,051 4,761,956 5,238,152 5,761,967 6,338,163

1110 1110 1110 1110 1110 1110 1110
271 298 328 361 397 437 480

3,497,868 3,847,655 4,232,420 4,655,662 5,121,229 5,633,351 6,196,687

1110 1110 1110 1110 1110 1110 1110
265 291 321 353 388 427 469

2,439,360 2,439,360 2,683,296 2,683,296 2,951,625 2,951,625 3,246,787

1110 1110 1110 1110 1110 1110 1110
182 200 220 242 266 292 322
110,413 121,454 133,599 146,959 161,655 177,820 195,602
1110 1110 1110 1110 1110 1110 1110
6.05 6.66 7.32 8.05 8.86 9.74 10.72
20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000

Operating years of the pro

2 3 4 5

538,678 565,612 593,893 623,588

1,300,320 1,365,336 1,433,603 1,505,283

667,450.00 667,451.00 667,452.00 667,453.

4,275.00 4,275.00 4,275.00 4,275.00

1,247,400 1,309,770 1,375,259 1,444,0
422,641 422,642 422,643 422,644
50,001.00 50,002.00 50,003.00 50,004.00
 40,001.00 40,002.00 40,003.00 44,003.

4,270,766 4,425,090 4,587,130 4,761,271

ct
3 4 5 6 7 8 9
20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000
4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686

16,380,679 18,055,279 20,145,379 22,184,667 24,705,145 27,191,888 30,232,314

448,658.00 448,658.00 448,659.00 448,660.00 448,661.00 448,662.00 448,663.00

15,932,021 17,606,621 19,696,720 21,736,007 24,256,484 26,743,226 29,783,651

667,449 667,450 667,451 667,452 667,453 667,454 667,455

15,264,572.00 16,939,171.00 19,029,269.00 21,068,555.00 23,589,031.00 26,075,772.00 29,116,196.00
4,579,371.60 5,081,751.30 5,708,780.70 6,320,566.50 7,076,709.30 7,822,731.60 8,734,858.80
10,685,200.40 11,857,419.70 13,320,488.30 14,747,988.50 16,512,321.70 18,253,040.40 20,381,337.20

ars )
2 3 4 5 6 7 8

3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

448,658 448,658 448,658 448,658 448,658 448,658 448,658
448,658.00 448,658.00 3,899,876.00 3,899,876 3,899,876 3,899,876 3,899,876

Annex 6. discounted cash flow

Project Life years

2 3 4 5 6 7 8

18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910

18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910

- - - - - - -
 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022
4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731
8,529,239 9,004,461 9,668,881 10,470,051 11,264,885 12,213,448 13,161,753
10,385,096.00 11,801,308.00 12,973,528.00 14,436,599.00 15,864,101.00 17,628,436.00 19,369,157.00
NET PRESENT VALUE (NPV) 54,439,417.00
INTERNAL RATE OF RETURN (IRR) 34.13%
DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years

Annex 7 undiscounted cash flow

Project Years

Operating years
2 3 4 5 6 7 8

0
18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910
18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910
18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910

0 0 0 0 0 0 0
4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022

0 0 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

448,658 448,658 448,658 448,658 448,658 448,658 448,658

4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731

8,977,897 9,453,119 13,568,757 14,369,927 15,164,761 16,113,324 17,061,629
9,936,438 11,352,650 9,073,652 10,536,723 11,964,225 13,728,560 15,469,281

8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729

18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010

 10
21,787,437
1110
825

6,971,980
1110
528

6,816,355
1110
516

3,246,787
1110
354
215,163
1110
11.79
39,037,721

Operating years of the project

5 6 7 8

623,588 654,767 687,505 721,881

1,505,283 1,580,547 1,659,574 1,742,553

667,453.00 667,454.00 667,455.00 667,456.00

00 4,275.00 4,275.00 4,275.00

1,444,021 1,516,222 1,592,034 1,671,635
44 422,645 422,646 422,647
4.00 50,005.00 50,006.00 50,007.00
 44,003.30 48,403.63 53,243.99 58,568.39

,271 4,944,319 5,136,739 5,339,022

10
39,037,721
5,775,275

33,262,446

448663
32,813,783

667,455
32,146,328.00
9,643,898.40
22,502,429.60

24,158,528 2415853 314060.9 241585.3

2729914

9 10

3,451,218 3,451,218
448,658 448,658
3,899,876 3,899,876

9 10

35,784,000 39,037,721
35,784,000 39,037,721

- -
 5,551,686 5,775,275
8,734,858 9,643,898
14,286,544 15,419,173
21,497,456.00 23,618,548.00 167,684,063.00
54,439,417.00
34.13%
3.9years

9 10

35,784,000 39,037,721
35,784,000 39,037,721
35,784,000 39,037,721

0 0
551,686 5,775,275

3,451,218 3,451,218
448,658 448,658

8,734,858 9,643,898
13,186,420 19,319,049
22,597,580 19,718,672

90,872,010 113,469,590

113,469,590 133,188,262
 9 10

757,975 795,873

1,829,681 1,921,165
667,457.00 667,458.00

4,275.00 4,275.00
1,755,217 1,842,978
422,648 422,649
50,008.00 50,009.00
 64,425.23 70,867.75

5,551,686 5,775,275
 A. Land, Building & Construction
S.N Description of works Total Cost in birr
1 Building construction 32,277,000.18
2 Site Development 1,000,000.00
3 Design and supervision 500,000.00
4 1 Year land lease & (10%)
st
30,000.00
down payment
Total 33,807,000.18

Machineries and Equipments

SN Description Measurement Qty Unit cost in
Birr
1 Generator Unit 1 120,000.00
2 Carpentry tool box Set 1 17,000.00
3 Electrician tools box Set 1 18,500.00
4 Plumber tools kit Set 1 12,300.00
5 Fire extinguisher Unit 10 6,000.00
(Security Equipment)
6 Total

C .Vehicle
SN Description UOM Qty Unit Cost in
Fr.
1 Pick up Unit 1 1,500,000.00
Total

D. Office Equipments
SN Description Measurement Qty Unit cost in
birr
1 Managerial tables Unit 5 2,600.00
2 Managerial chairs Unit 5 1,950.00
3 Office table with chair Unit 7 1,350.00
4 Secretarial table with Unit 1 1,450.00
chairs
5 Computer with chairs Unit 3 15,000.00
6 Shelf Unit 3,500.00
7 Filing cabinets Unit 1 1,500.00
 8 Guest chairs Unit 1 900
9 Fax & Telephone Unit 5 1,300.00
machine
10 Carpet and Curtain LS 1
Total

a. salary Expense

SN Position No Qualification Monthly

salary in Birr
1 General manager 1 BA in 3000
management
2 Building admin 1 BA in 3000
Acct/Mgt
3 Secretary 1 10+2 in 1500
secretariat
science
4 HRM Officer 1 10+2 in 1200
HRM/Manage
ment
5 Technical and 1 Diploma in 1500
maintenance manager building
maintenance
6 Finance head 1 BA in 3000
Accounting
7 IT Technician 1 Diploma in 1200
computer
science/IT
8 Marketer 1 Diploma in 1200
marketing
9 Accountant 1 Diploma in 1200
accounting
10 Guards/Security 4 Basic 750
11 General Service head 1 Diploma in 1500
Management
12 Purchaser 1 Diploma in 1200
purchasing
&Sup Mgt
13 Electrician 1 10+2 in 1000
general
electricity
14 Plumber 1 10+2 in 1000
general
mechanic
15 Casher 2 10+1 in 1000
bookkeeping
16 Cleaner 5 Unskilled 750
17 Maintenance officer 1 10+2 in 1000
General
mechanic
18 Driver 1 10 completed 850

Total 26
Benefit (20%)
Grand Total

5.1.1   Operating
Expenses

SN List of Items Annual cost in Assumptions

birr Used
1 Audit and legal fee SN List of Items Annual cost in
birr
2 Stationery supplies 1 Audit and 24,000.00
legal fee
3 Promotional Cost 2 Stationery 6,000.00
supplies
4 Property Insurance 3 Promotional 40,000.00
Cost
5 Cleaning Supplies 4 Property 84,009.00
Insurance
6 Uniforms 5 Cleaning 10,800.00
Supplies
7 Water consumption 6 Uniforms 1,670.00

8 Electric consumption 7 Water 5,000.00

consumption
9 Fuel 8 Electric 6,000.00
consumption
10 Oil & Iubricants 9 Fuel 42,672.00

11 Telephone & fax 10 Oil & 4,267.20

Iubricants
12 Repair expense 11 Telephone & 18,000.00
fax
13 Miscellaneous costs 12 Repair 72,018.00
expense
Total 13 Miscellaneous 20,000.00
costs
Total 334,436.20

5.1.1   Pre-service
Expenses
SN Description Cost in birr
1 Project proposal 10,000.00
2 Licensing fee and others

Total 10,000.00

Summary of Total initial investment cost

SN Description Cost in Birr 6,193,054.84
1 Land, building & construction 33,807,000.18
2 Building machines & 227,800.00
Equipments
3 Vehicle 1,500,000.00
4 Office Equipment 112,450.00
Total fixed investment cost 35,647,250.18
6 Salary expense 372,000.00
7 Operation Expense 334,436.20
8 Pre service Expense 10000
Total Working capital 716,436.20
Sub total 36,363,686.38
11 Contingency (10%) 3,636,368.64 1,500,000.00
Total initial investment 40,000,055.02
capital 40000000 -55.02
1,499,944.98

5.1.1   Depreciation
Schedule
SN Description Original Value in Birr Depreciation rate Depreciation per
in % year in Birr
1 Construction and Building 33,807,000.18 1 338,070.00
2 Bldg. machines & Equipments 227,800.00 10 22,780.00
3 Vehicle 1,500,000.00 5 75,000.00
4 Office Equipment 112,450.00 10 11,245.00
Total 35,647,250.18 447,095.00

Building
Revenue Year 1 Year 2 Year 3 and after
Rental Income 1,785,000.00 2,380,000.00 2,975,000.00

Expenses
Salary Expense 372,000.00 372,000.00 372,000.00
Operating Expenses 334,436.20 334,436.20 334,436.20
Deprecation Building 338,070.00 338,070.00 338,070.00
Deprecation Bld. Machineries 22,780.00 22,780.00 22,780.00
and Equip.
Deprecation of Vehicle 75,000.00 75,000.00 75,000.00
Deprecation office Equip 11,245.00 11,245.00 11,245.00
Interest Expense3 354,548.95 319,094.06 177,274.48
Lease payment4 5,000.00 5,000.00 5,000.00
Total Expense 1,513,080.15 1,477,625.26 1,335,805.68
Profit before Tax 271,919.85 902,374.75 1,639,194.33
Tax (30%) 81,575.96 270,712.42 491,758.30
Net profit 190,343.90 631,662.32 1,147,436.03

Year Year 0 Year 1 Year 2

Equity Capital 12,000,000.00
Loan principal 28,000,000.00
Net sale 0 432,000.00 540,000.00
Total Cash in flow 40,000,000 432,000.00 540,000.00
Cash payment
Salary Expense 0 118,200 118,200
Investment 1,556,350 0 0
Pre operating Expense 5,000 0 0
Operating Cost 0 77,195.00 77,195.00
Loan repayment 0 200,000.00 168,000
Lease payment 0 1,500.00 1,500.00
Tax payment 0 2,399.00 5,999.00
Total payment 1,561,350.00 399,294 370,894.00
Cash surplus/ deficit 438,650.00 32,706.00 169,106.00
Cumulative cash flow -561,350.00 594,056.00 763,162.00

Annex 6. discounted cas

Investment Year
Description 0 1 2
INFLOW
Net sales revenue 0 17,158,850 18,914,335
TOTAL INFLOWS 0 17,158,850 18,914,335
OUTFLOWS
Investment cost 34,512,183 - -
Operating cost 0 4,123,791 4,270,766
Income tax 0 3,775,920 4,258,473
TOTAL OUTFLOWS 34,512,183 7,899,711 8,529,239
NET CASH FLOW 10,850,695.00 9,259,139.00 10,385,096.00
Total cost in Birr.

120,000.00
17,000.00
18,500.00
12,300.00
60,000.00

227,800.00

Total cost in Birr

1,500,000.00
1,500,000.00

Total cost in Birr

13,000.00
9,750.00
9,450.00
1,450.00

45,000.00
3,500.00
1,500.00
 4,500.00
1,300.00

23,000.00
112,450.00

Annual salary in
Birr
36,000

36,000

18,000

14,400

18,000

36,000

14,400

14,400

14,400

9,000
18,000

14,400

12,000
 12,000

12,000

9,000
12,000

10,200

310,200
62,000
372,000

Assumptions
Used
2000 br/per
,month
500 br/month

Lump sum annual

cost
1% of the building

900 br. Per month

180 per pes for 16

people
2500 m3 by 3.15
br
20000KWH By
Br.0.4736
2032 lit per year
by Br. 21
10% of fuel cost
 1500 per month

2% of building cost

3000 per month

Year 3 and after

572,400.00
572,400.00

118,200
0
0
77,195.00
 128,000
1,500.00
7,079.00
331,974
240,426.00
1,003,588.00

nnex 6. discounted cash flow

Project Life years
3 4 5 6 7 8

20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910

20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910

- - - - - -
4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022
4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731
9,004,461 9,668,881 10,470,051 11,264,885 12,213,448 13,161,753
11,801,308.00 12,973,528.00 14,436,599.00 15,864,101.00 17,628,436.00 19,369,157.00
NET PRESENT VALUE (NPV) 54,439,417.00
INTERNAL RATE OF RETURN (IRR) 34.13%
DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years
 9 10

35,784,000 39,037,721
35,784,000 39,037,721

- -
5,551,686 5,775,275
8,734,858 9,643,898
14,286,544 15,419,173
21,497,456.00 23,618,548.00
54,439,417.00
34.13%
3.9years