Parameters

2021 2022 2023

Tax rate 33% 35%
Sales ($) $ 350,000.00
EOY COH $ 15,000.00
COGS % 70%

Time (years) 10
Amount borrowed ( E) 100000
Amount borrowed (NE) 0
Interest Rate ( R) 5%
Interest Rate ( B) 4%
COGS multiplication factor (H) 1.06
COGS multiplication factor (L) 1.02
E NE
Sales growth ( R) 30% 15%
Sales growth ( B) 20% 5%

State of the economy (R/B) B (base case)

Inflation (H/L) H (base case)

Decision

Expand or not (E/NE) N (base case)

Summary of key Outcomes

2021 2022 2023
PAT $ 63,526.05 $ 53,544.79
EOY COH $ 78,526.05 $ 132,070.84

Calculations
2021 2022 2023
Amount borrowed 0
Interest rate 0.04
Loan repayment $0.00

Sales growth rate 0.05

Sales $ 350,000.00 $ 367,500.00 $ 385,875.00

COGS multiplication factor 1.06

COGS % 70% 0.742 0.78652
COGS $ 245,000.00 $ 272,685.00 $ 303,498.41

Income and CF Statement

2021 2022 2023
BOY COH $ 15,000.00 $ 78,526.05
Sales (TR) $ 367,500.00 $ 385,875.00
COGS $ 272,685.00 $ 303,498.41
Loan repayment $0.00 $0.00
Total Cost $ 272,685.00 $ 303,498.41
PBT $ 94,815.00 $ 82,376.60
Tax $ 31,288.95 $ 28,831.81
PAT $ 63,526.05 $ 53,544.79
EOY COH $ 15,000.00 $ 78,526.05 $ 132,070.84
Scenario Summary
Current Values: Base Case REH RNL
Changing Cells:
StateOfEconomy B R R R
Expansion_DecisonN E E N
InflationRate H L H L
Result Cells:
PAT_22 $ 63,526.05 $ 78,510.29 $ 69,974.49 $ 70,420.35
PAT_23 $ 53,544.79 $ 96,051.75 $ 73,659.93 $ 68,152.47
EOY_COH22 $ 78,526.05 $ 93,510.29 $ 84,974.49 $ 85,420.35
EOY_COH23 $ 132,070.84 $ 189,562.04 $ 158,634.42 $ 153,572.82
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in grey.
 RNH BEL BNL BNH BEH REL

R B B B B R
N E N N E E
H H L H H L

$ 63,526.05 $ 64,340.71 $ 70,420.35 $ 63,526.05 $ 64,340.71 $ 78,510.29

$ 53,544.79 $ 61,922.14 $ 68,152.47 $ 53,544.79 $ 61,922.14 $ 96,051.75
$ 78,526.05 $ 79,340.71 $ 85,420.35 $ 78,526.05 $ 79,340.71 $ 93,510.29
$ 132,070.84 $ 141,262.84 $ 153,572.82 $ 132,070.84 $ 141,262.84 $ 189,562.04
Model Design

Influence Diagram
Black Box
Trid’s Rent Decision
Parameters
Total House Price $ 239,000.00
Savings before Buying the house $ 50,000.00
Downpayment $ 47,800.00
Cash In Hand $ 2,200.00
Amount to Pay $ 191,200.00
Loan Interest pa 3.95%
Loan Interest pm 0.33%
Loan period in months 300
No. of people including Trid 5
Property tax pa 1.44%
Change in House Price 2%

Maintainance cost $ 1,200.00

Insuarance Cost $ 2,000.00
Internet cost (Trid's Own) $ 560.00

Utility costs
Hydro $ 1,200.00
Gas $ 360.00
Water $ 480.00
Extra cost to Trid when utility cost is
not included in rent and charged extra $ 408.00

Decision Variables
Rent per person $ 420.00
Whether to include Utility Cost in the
rent or not( 1 OR 0) 0

Calculations YEAR 1
EMI pm $ 1,003.95 $ 1,003.95
EMI pa $ 12,047.44 $ 12,047.44
Utility Costs $ 816.00 $ 816.00
Year (For house Price change calculation 0 0
House Price $ 239,000.00 $ 239,000.00
Property Tax $ 3,448.05 $ 3,448.05
Other Costs $ 3,760.00 $ 3,760.00

INCOME AND CF STATEMENTS

Total Costs $ 20,071.49 $ 20,071.49
Total Income $ 20,160.00 $ 20,160.00
Profit $ 88.51 $ 88.51
Cash On hand(EOY) $ 2,288.51 $ 2,288.51
YEAR 2 YEAR 3
$ 1,003.95 $ 1,003.95
$ 12,047.44 $ 12,047.44
$ 816.00 $ 816.00
1 2
$ 243,780.00 $ 248,560.00
$ 3,517.01 $ 3,585.98
$ 3,760.00 $ 3,760.00

$ 20,140.45 $ 20,209.41
$ 20,160.00 $ 20,160.00
$ 19.55 $ (49.41)
$ 2,377.02 $ 2,396.57