CAPITAL BUDGETING OF INFRASTRUCTURE PROJECTS

Sno Description -2 -1 0 1 2 3 4 5 6 7 8 9 10 11
1 Sales Targeted with 20% profit 5 10 15 10 5 5

Cu sales 5 15 30 40 45 50 50 50 50 50 50 50

3 Cu. Cost of project 4 12 24 32 36 40 40 40 40 40 40 40

Labour 1 3 6 8 9 10 10 10 10 10 10 10

Material 2 6 12 16 18 20 20 20 20
2 Plant 3 6 8 9 10 10 10 10 10 10

3 Cu. Cost of project 1 3 9 16 23 31 36 38 40 40 40 40

Cost of Tender forms & Workout
4 expenses for submission (.01) 0.05
Preliminary Expenses /
Mobilisation of site office +
5 Infrastructures (1%) 0.5
6 Earnest Money deposit ( 3%) 1.5
7 Invititation Expenses (0.5%) 0.25
8 Cu. Out Go 0.05 2.3 3.3 5.3 11.3 18.3 25.3 33.3 38.3 40.3 42.3 42.3 42.3 42.3
9 Cu. Billable Amount 10 20 35 45 50 50 50 50 50 50 50
10 Ready for payments 5 10 20 35 45 50 50 50 50 50
11 Deduction
12 20% Retention of Bill 2 4 7 9 10 10 10 10 10
13 7.5 % Income Tax 0.75 1.5 2.625 3.375 3.75 3.75 3.75 3.75 3.75
14 Cum Income 0 0 5 7.25 14.5 25.375 32.625 36.25 36.25 36.25 36.25 42.75
Net Out Go ( cu outgo-cu
15 income) -0.05 -2.3 -3.3 -5.3 -6.3 -11.05 -10.8 -7.925 -5.675 -4.05 -6.05 -6.05 -6.05 0.45
16 Incremental OutGo -0.05 -2.25 -1 -2 -1 -4.75 0.25 2.875 2.25 1.625 -2 0 0 6.5
17 Evaluation @ 12% 1.138 1.127 1.116 1.105 1.094 1.083 1.072 1.062 1.051 1.041 1.030 1.020 1.010 1.000
18

19 Future Worth after 13 month -0.06 -2.54 -1.12 -2.21 -1.09 -5.14 0.27 3.05 2.36 1.69 -2.06 0.00 0.00 6.50
20 Total Profit
12

20

20