Group 1 q

(finances,budget,loans)

Q2,3,4,
p1 quantative discussions
oans)

Q2,3,4,5
 Income statemen

first phase

price/
call/day price /call call/year year
7 200 2555 511000

second phase
price/ printer/ price/ printer/
call/day price /call call/year year day printer year
5 200 1825 365000 4 400 1460

total revenue
first year 511000
second
year 562100

third year 1567310

fourth
year 1724041
fifth year 1896445
sum of 5
years 6260896 SR
ome statement
assuming
every
company receive fixed num
calls. Every deal was succes

in the third year start of second

phase additional 5 calls are
price/year total price added with commision of
584000 949000 printers
1 phase

2 phase
uming
every day
mpany receive fixed number of
alls. Every deal was successful

first year
and
second
year

third to
fifth year
 budgetary proposal
annual expense Establishing price /fixed price
1 year root

furniture
of
root expense workshop
office furniture
rent 40000 of office
machiner
utilities 12000 y

transport
ation and
fuel cost 6000 transport

2
technican 72000 marketing

spare and
maintanc
office boy 18000 e printers
sum 148000 sum
2 year
root expense
office
rent 40000
utilities 12000

transport
ation and
fuel cost 6000

2
technican 79200

office boy 19800

sum 157000
3 year
root expense
office
rent 40000
utilities 12000 This budget was less feasible. It was d
and bank loan expenses were not in
future. The assumption of stagnant ci
transport the same time, the decisions can be d
ation and proposal at least helps us to conclu
fuel cost 8000

2 old
technican 87120

2 new
technicia
ns 72000

office boy 21780

sum 240900
4 year
root expense
office
rent 40000
utilities 12000

transport
ation and
fuel cost 8000

2 old
technican 95832

2 new
technicia
ns 79200

office boy 23958

sum 258990
5 year
root expense
office
rent 40000
utilities 12000

transport
ation and
fuel cost 8000
2 old
technican 105415

2 new
technicia
ns 87120

office boy 26354

sum 278889
Establishing price /fixed price 1) For every year, the re
total five year
expense expense does not change. Marke
was ignored
2) QEC work every day
and national holidays we
3) Two new technicians
8000 first year 240000 previous two remain the
second salary
22000 year 157000 4) Compound growth rat
considered
33000 third year 240900
5) One time installation o
year:
• Furniture of workshop
• Furniture of office
fourth • Machinery
20000 year 258990 • Transport
• Spare and maintenanc
6) The office boy remain
3000 fifth year 278889 annual increment in his s
7) No income was withd
8) In five years, office bo
INCREMENT WAS INCL
9) Revenue or profit earn
sum of 5 10) Other elements like
6000 years 1175779 artificial disaster was no
92000 11) No budget was alloc

included
13) expen
 FEASIBILITY
get was less feasible. It was designed on ideal assumptions. Market trends of five years
ank loan expenses were not included: as if there is no change in the rent, fuel cost in
The assumption of stagnant circumstances of 5 years reduced the proposal accuracy. At
me time, the decisions can be defined, keeping in mind the ideality of the situation. This
osal at least helps us to conclude an approximate budget we should have for 5 years.
 Assumptions
1) For every year, the rent of the house, fuel cost, transportation cost
does not change. Market downfall or other business affecting factors
was ignored
2) QEC work every day for all year.No regular, government, religious
and national holidays were considered
3) Two new technicians were recruited in the second phase. The
previous two remain the same; receiving an increment of 10 % in their
salary
4) Compound growth rate and compound salaries growth was
considered
5) One time installation of the following is considered, only in the first
year:
• Furniture of workshop
• Furniture of office
• Machinery
• Transport
• Spare and maintenance of printers
6) The office boy remains the same, therefore, there is a constant 10%
annual increment in his salary.
7) No income was withdrawn during five year
8) In five years, office boy was not replaced THUS CONSTANT 10%
INCREMENT WAS INCLUDED IN HIS SALARY
9) Revenue or profit earning from spare parts was ignored.
10) Other elements like taxes, repair bills because of any natural or
artificial disaster was not considered
11) No budget was allocated for the company’s insurance.
12) bank required intrest is not
included
13) expense for marketing is only included in the first year
 Profit
total revenue total expense
first year 511000 first year
second second
year 562100 year

third year 1567310 third year

fourth fourth
year 1724041 year
fifth year 1896445.1 fifth year
sum of 5 sum of 5
years 6260896.1 SR years

fixed funds

this is loan is taken to fullfill the startup expense that

is actually the expense of 1 st year
FIXED
from payment calculator
https://www.calculator.net/pa
yment-calculator.html? loan bank giving
ctype=fixterm&cloanamount=5 expense savings required loan at intrest
0000&cloanterm=5&cmonthlyp 240000 40000 200000 200000 6%
ay=1000&cinterestrate=6&prin
tit=0&x=0&y=0#

total revenue

first year 511000

second
year 562100

third year 1567310

fourth
year 1724041
fifth year 1896445.1
sum of 5
years 6260896.1 SR
 Total Revenue - Total Expenses = Profit

total expense profit assuming

every day company receive fixed num
240000 first year 271000 Every deal was successful . Bank intrest i
second This is in ideal situation
157000 year 405100

240900 third year 1326410

258990 fourth year 1465051

278889 fifth year 1617556.1
overall
1175779 SR profit 5085117.1 SR

fixed funds

pay in a time
period of profit hold
5 years none

Monthly annual no. of Total of 60 Total

Payment: payment payments Payments Interest
3866 46392 60 231994 31994

remaing profit

total expense+debt of
bank

first year 286392 first year 224608

second second
year 203392 year 358708

third year 287292 third year 1280018

fourth
fourth year 305382 year 1418659
fifth year 325281 fifth year 1571164.1
sum of 5 overall
years 1407739 SR profit 4853157
venue - Total Expenses = Profit

day company receive fixed number of calls.

al was successful . Bank intrest isnt included.
This is in ideal situation

variable

bank giving
loan loan(of pay in a time
expense savings required choice) at intrest period of profit hold
240000 40000 200000 200000 2.5% 5 years 20%

Monthly annual no. of Total of 60 Total

Payment: payment payments Payments Interest
3549 42594 60 212968 12,968.34

total revenue
total expense +debt of
bank
first year 511000 first year 282594
second second
year 562100 year 199594

third year 1567310 third year 283494

fourth fourth
year 1724041 year 301584

fifth year 1896445.1 fifth year 321483

sum of 5 sum of 5
years 6260896.1 SR years 1388747.2 SR
 profit 20% hold remaining
up by bank profit
first year 228406 45681 182725
second
year 362506 72501 290005

third year 1283816 256763 1027053

fourth
year 1422457 284491 1137966

fifth year 1574962 314992 1259970

overall
profit 4872149 974430 3897719
 Variable funds
intrest intrest total
money rate money payment
200000 2.50% 5000 205000
205000 3% 6150 211150
211150 2% 3167.25 214317.3

214317.3 5% 10715.86 225033.1

225033.1 2.50% 5625.828 230658.9

intrest intrest total

money rate money payment
200000 6.00% 12000 212000
212000 3% 6360 218360

218360 2% 3275.4 221635.4

221635.4 5% 11081.77 232717.2

232717.2 2.50% 5817.929 238535.1

riable funds

total revenue remaing profit

total expense+debt
of bank
first year 511000 first year 445000 first year
second second second
year 562100 year 368150 year

third year 1567310 third year 455217 third year

fourth fourth fourth
year 1724041 year 484023 year
fifth year 1896445 fifth year 509548 fifth year
sum of 5 sum of 5 overall
years 6260896 SR years 2261938 SR profit

total revenue profit

total expense +debt

of bank
first year 511000 first year 452000 first year
second second second
year 562100 year 375360 year

third year 1567310 third year 462535 third year

fourth fourth fourth
year 1724041 year 491707 year
fifth year 1896445 fifth year 517424 fifth year
sum of 5 sum of 5 overall
years 6260896 SR years 2299027 SR profit
remaing profit

66000

193950

1112093

1240018
1386897

3998958

profit 20% hold remaining

up by profit
bank

59000 11800 47200

186740 37348 149392

1104775 220955 883820

1232334 246467 985867

1379021 275804 1103217

3961869 792374 3169496