STATEMENT OF CASH FLOW

Year 0 1 2 3 4 5
Initial Investment (*) (180,000,000)
I. Cash inflows
Expected growth rate 10% 10% 10% 10%
Collections from customers/ sales 1,372,200,000 1,509,420,000 1,660,362,000 1,826,398,200 2,009,038,020
Sale/ Disposal of non-current assets 40,000,000
Other collections
Cash inflows 1,372,200,000 1,509,420,000 1,660,362,000 1,826,398,200 2,049,038,020
II. Cash outflow
Materials 411,660,000 452,826,000 498,108,600 547,919,460 602,711,406
Employees 431,783,333 431,783,333 431,783,333 431,783,333 431,783,333
Rental costs 60,000,000 120,000,000 120,000,000 120,000,000 120,000,000
Interest paid
Tax payments
Business rates 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Value-added tax (VAT) 137,220,000 150,942,000 166,036,200 182,639,820 200,903,802

Other operating expenses

--- Cash paid for selling activities(commission + discount program + printing costs….) 41,166,000 45,282,600 49,810,860 54,791,946 60,271,141
--- Cash paid for administrating activities (documentations + clerks) 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000
--- Cash paid for distribution activities(fuel cost+ utility: telephone, internet, electricity, water bill) 25,440,000 25,440,000 25,440,000 25,440,000 25,440,000

Total cash outflow 1,111,869,333 1,230,873,933 1,295,778,993 1,367,174,559 1,445,709,682

III. Net cash flow
Before corporate income tax (180,000,000) 260,330,667 278,546,067 364,583,007 459,223,641 603,328,338
After corporate income tax (25%) 195,248,000 208,909,550 273,437,255 344,417,731 452,496,254
Note
(*) Initial Investment includes details as below (estimated figure)
Purchase of property: Furniture and design costs 13,500,000 NPV= 1,251,794,677 > 0
Rental deposits (half year) 60,000,000 IRR= 1.21 > r
Purchase of machinery (air conditioners + audio system + coffee maker + TV + Refrigerator) 69,500,000 DPP= 0.9219 => pay back period is about 11 months
Business register fee+ website design+ market research fee+ flower tuition fee 8,500,000 B/C ratio = 1.249> 1
Construction 23,500,000 Conclusion: Investment is feasible. So, undertake project
Other possible cost 5,000,000

Total initial investment 180,000,000

1. Discounted payback method
This investment project is uneven cash flow
Year Net cash flow
0 (180,000,000)
1 195,248,000
2 208,909,550
3 273,437,255
4 205,077,941
5 153,808,456
Discounted Payback period
Discounted Payback period is about 12 months

2. Benefit- Cost Ratio (r=10%) Cash inflow

PV1 1,247,454,545
PV2 1,247,454,545
PV3 1,247,454,545
PV4 1,247,454,545
PV5 1,272,291,398
PV of total cash inflows

BCR 1.24916160149813
3. NPV, IRR (r=10%) Year Cash flow
0 (180,000,000)
1 195,248,000
2 208,909,550
3 273,437,255
4 344,417,731
5 452,496,254
en cash flow
Discounted net cash flow Cumulative

177,498,182 177,498,182
172,652,521 350,150,703
205,437,457 555,588,160
140,070,993 695,659,153
95,502,950 791,162,103
1.01
is about 12 months

Cash outflow
PV1
PV2
PV3
PV4
PV5
6,262,109,580 PV of cash outflows
PV of total cash outflows

NPV= 891,794,677

IRR= 121% Conclusion: Payback period is short (only 11 months)

B/C ratio = 1.2491> 1 and NPV=1,251,794,677 > 0 and IRR >
DPP= 1.01 So investment is feasible =>undertake project
 1,010,790,303
1,017,251,184
973,537,936
933,798,620
897,671,968
4,833,050,011
5,013,050,011

ack period is short (only 11 months)

> 1 and NPV=1,251,794,677 > 0 and IRR > r
easible =>undertake project
1. Purchase of property (furniture, tools,etc)

2. Purchase of machinery

3. Rental deposit (10mi*6months)

4. Business establishment fee

5. Mending

6. Other possible cost

Estimated Total Initial Investment

 Initial Investment
Items Quantity
Big iron frame 1
Signs 1
A set of 4 chairs and a table for customers 1
Computer desk 1
Big plastic chair 3
Small plastic chair 3
Vases 15
Aerosal 3
Staff's uniform 6
Catalogue 2
Carpet 1
Picture 4
Clock 1
Scissors 4
Stapler 4
Knives 3
Glue gun 3
Card 500

Air conditioner 1
Computer 1
Flower freezer showcase 1
Telephone 1
Printer 1
Secondhand motorbike 2
Fan 3

Business register fee

Website design
Tuition for a flower course
Fee for market research and creating project

Repair wall and ceiling

Painting
Lighting system
New glass door
Automatic roof
Price per unit (VND) Total cost (VND)
2,000,000 2,000,000
2,000,000 2,000,000
3,000,000 3,000,000
1,000,000 1,000,000
40,000 120,000
15,000 45,000
50,000 750,000
40,000 120,000
300,000 1,800,000
300,000 600,000
150,000 150,000
200,000 800,000
300,000 300,000
50,000 200,000
20,000 80,000
50,000 150,000
60,000 180,000
200 100,000
13,395,000
9,800,000 9,800,000
7,400,000 7,400,000
24,000,000 24,000,000
300,000 300,000
3,000,000 3,000,000
12,000,000 24,000,000
320,000 960,000
69,460,000
60,000,000
180,000
2,000,000
6,000,000
300,000
8,480,000
5,000,000
4,000,000
2,500,000
10,000,000
1,800,000
23,300,000
5,000,000

179,635,000
1. Estimated collections from customers (360 work days per year and calculate by average price)
1.1 Retail sales at shop
a, Normal day
b, Special occasions (about 12 days: no of sales increases about 3-4 times)
(Tet, Valentine, 8/3, 20/10, 20/11)

1.2 Online sales and Telephone order

a, Normal day
b, Special occasions
1.3 Wedding

1.4 Sales for enterprises, companies, etc

2. Sale/ Disposal of non- current assets (count for final year)

Year 1
Expected growth rate
Collections from customers/ sales 1,372,200,000
Sale/ Disposal of non-current assets
Other collections
Cash inflows 1,372,200,000
 Cash inflow (VND, per year)
lculate by average price)

(5 orders x 200,000 per serve) x 348 days= 348,000,000

creases about 3-4 times)

(20 orders x 250,000 per serve) x 12 days = 60,000,000

(2 orders x 200,000 per serve) x 348 days = 139,200,000

(8 orders x 250,000 per serve) x 12 days = 24,000,000

90 orders/ year x 2,500,000 per serve =225,000,000

( 4 orders x 400,000 per serve) x 360 days = 576,000,000

Total estimated Collections from customers: 1,372,200,000

40,000,000

2 3 4 5
10% 10% 10% 10%
1,509,420,000 1,660,362,000 1,826,398,200 2,009,038,020
40,000,000

1,509,420,000 1,660,362,000 1,826,398,200 2,049,038,020

 Cash outflow (VND per
1. Material (per customer order, material should be controlled at 30% of sale order)
Revenue 1,372,200,000
Material 411,660,000
2. Employees
1 2
Title Number of people
Manager 1
High-skill Decorator 1
Middle-skill Decorator 1
Sales person 1
Delivery employees 2
Total 6

(8) 2 temporary employees in rush period such as wedding months: 2 x 150,000/day x 20 days = 6,000,000
Total per year =(4) x 12 + (5) + (6) + (7) + (8) = 431,783,333
3. Rental cost (year1 : minus half year deposit) 1
60,000,000
4. Tax payment
Business rates 1,000,000
Value-added tax (VAT) = 10% Revenue 137,220,000
total 138,220,000
5. Other operating expenses

5.1.Cash paid for selling activities(commission + discount program + printing costs….) is 3% of Revenue
1
Revenue 1,372,200,000
Cash paid for selling activities
5.2. Cash paid for administrating activities (documentations + clerks) 41,166,000

500,000/month
5.3. Cash paid for distribution activities(fuel cost+ utility: telephone, internet, x 12
electricity, months=
water bill)

Fuel cost
Telephone bill
Electricity
Water bill
Internet
Website maintenance fee
Total per month
Total per year

Year
Cash outflows
 Cash outflow (VND per year)
sale order)
1,509,420,000 1,660,362,000 1,826,398,200 2,009,038,020
452,826,000 498,108,600 547,919,460 602,711,406

3 4 5 6
Responsibility Salary (per month) Tet holiday bonus (=50% Other occasional bonus
8,000,000 4,000,000 500,000
7,000,000 3,500,000 450,000
5,500,000 2,750,000 400,000
5,500,000 2,750,000 400,000
4,000,000 2,000,000 250,000
34,000,000 17,000,000 2,250,000

y x 20 days = 6,000,000

2 3 4 5
120,000,000 120,000,000 120,000,000 120,000,000

1,000,000 1,000,000 1,000,000 1,000,000

150,942,000 166,036,200 182,639,820 200,903,802
151,942,000 167,036,200 183,639,820 201,903,802

% of Revenue
2 3 4 5
1,509,420,000 1,660,362,000 1,826,398,200 2,009,038,020
45,282,600 49,810,860 54,791,946 60,271,141

hity,
x 12 months=
water bill) 3,600,000

650,000
300,000
600,000
150,000
220,000
200,000
2,120,000
25,440,000

1 2 3 4
1,111,869,333 1,230,873,933 1,295,778,993 1,367,174,559
 7
Extra time allowances (=2/3 x (4) x 20%)
1,066,667
933,333
733,333
733,333
533,333
4,533,333

5
1,445,709,682