by. business plan 1S a comprehensive, written description of +e A bys oe an erterp/se.Tt 1s a detated report on Se company’s siness products OF Ser*iEeS, prodvedion FeehM gues markers and c lends markenng strategy, human ve Sources, orgoniza tron, Teguiremense in respect of ImFrastruciue and ovpphes, Fironemy require ment end sovrces APE vSe5 of Funcis. The busmess plan describes 4 tomsiness, but its main peipese 1 Some of the reasons for athe importance O bersiness plan: * Getting an integrated view of your business 7 By preporing your betiness plan 1SUES regovding your Wousiners, * Muwval Onder standing within the Management team. *Determining finoncial Meeds ond applying f,, finds © Reprvel From board of directors / Share builders. ° Reeriting “Deriving objectives for employees + Trtormny employees. > OAPSsesing the ® Developing @ @) Getting Situation mission > ready @ Monitoring tre < @ Setting employee Process objectives he part ond presonh shet@ of tw a + 40 present the fi4we ofan enterpite of why you need "4 gon get an integrated wiew of all © setting goals, @® woreing ot Ge bvaness plan Scanned with CamScannerOr consider ag business plan te be about 3-6 years. Depending aon the Ongoing si4votion in 4he business ig any chenges are regvited, the veqriredchanges must be done \worder for the development ofthe jousiness, T the business plen is too long Cro vot year) it may no ve health fox the business be, dhe World 15 changing ve £ 1a he Baw re vont © WN tanp ie lar ag were Kastey. Te the wvsiness plan is too short ,the consistency of the business moy fall off, therefore SF tine a besinesc Plan should be abut 3-6 years. Ar Prove) business plan is o written docmert thet describes : " oe detail how a business Ussvaily a new one wchleve it's goals denng next financiol year. The Arpnval besinecs len con pis defined as the process of defining a business roadmap for your Company and your emoleyees, comprised of a series of milestone, that compan; aims +o be by the end of the year a Business plan Annval Business plan * long tere plan oym “Plan “only for 1 yeov. Jome featies Can be *Cannot be Changed, changed. Scanned with CamScanner | { | |% Capt Capenditure refer 4o furdt thal ave ettmadiy Used by a Company for the purchase Improvement, or maintenance OF long-term assets to improva the efticiency or Capacity of the company. Importance of Copitel Expendivie - © Long-term efrects © Trreversibility * High initial costs * Depreciation ThE Wet Present Valve CN PV) approach 1s the most wmble Intuitive and accurate valvatton Approach to Capital bedgcting Problems, NPVs reveal exactly how profitable a project will be Comporison 4o alter natives NPV =G)—> Accept Proje ct NeN= (0) —> Trdiftere nd NPVYSC-3— Reject Project. The Tremal vote of retnCTRA) is the discomt rate that Weuid Yesult in a net Present value of Zero. An Tea which i higher than the weighted everage Cost of Copel Cwaec) suggests that the Capital project ig a profitable endeavor and vice versa. TRA vores . LRRD Cost oF Capital = Accept Project LRA Cost of Capite) = Peject Prof ect LTAR = Cost ot CapHols sso, Trdiftevent Scanned with CamScannerAssuming Cash inflows as [veer ' 2 3 4 s Telecom municaton| '5°000,000]| ps, 3,000,000] 05, 4, 000, 000 bs. 5,000,036 Cable plant ” ” P29,00%, 200] 1° lt PV Factor @ LOY. Discount [an) _ year 1 [2 2 & s_| PV Factors C107) 0.904 [ 0.226 | 0.751 |9-693/0621 t_ .0.46 >t Oe = 0.9o%er >! 0.826 D> | 0.75) Cite) (1407) (tre Ora 20.683 Ora 0.621 (4197 tt +107 Tele communi cation Cable plam ear] Cosh flons DF @ lov. PY 2 |Ci2,000, 000) ' (10,000, 000) 1 2,000,000 2.904 212, 000 2 3,009,000 0.826 2,678,000 0,000 4,00% 0.75) 3,004,000 4 3,009,009 0.683 2,044,000 00,000 5 | $,000, 0.621 3,105,000 NEV [2454000 NPV = RS 2,454,000 o. THIS investment 15 Worthwhile. Scanned with CamScannerTee a Years Yeors ol 2 Telecommunication Vest yeor* veo! 3 Cable plom (io, 200,008) 2,009,009 3,000500 4,000,099 u J | | ('2, 008,098) + 2,°0p,009 + :3,0092° + 4 G00,008 re Lo (t+r) (ise? Citry? year 4 years years Yeatr _ B, 000000 5,000,099 + v J 3,009,009 y ove + $,000, (ear (t4ers NPV = O = (10,000,008) + 2,009.099 4 3,009,999 4 4,008,000 229,998 Cary (i+r)* Ci+e3 + 3,000,009 0 eee + 209,000 (irr) (i+r7s y=2|13.0667 | DL RR=12.0667 Hence Tee C1%.0667) lou - -» Accept Pro\ect Scanned with CamScanner