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Certainly, let's adjust the assumptions and details to reflect the currency in Pakistani

Rupees (PKR) and the location in Lahore, Gulberg, Pakistan.

1. Estimated Cost of Project (in PKR):

 Land and Building: PKR 800 million


 Plant and Machinery: PKR 320 million
 Working Capital: PKR 160 million

Total Estimated Cost: PKR 1.28 billion

2. Source of Finance:

 Equity: PKR 640 million


 Debt (Bank Loan): PKR 640 million

3. 5 Years After-Tax Net Operating Cash Flows (NOCF) (in PKR):

 Year 1: PKR 64 million


 Year 2: PKR 76.8 million
 Year 3: PKR 89.6 million
 Year 4: PKR 102.4 million
 Year 5: PKR 115.2 million

4. Assumptions:

 Occupancy Rate: 70%


 Average Room Rate: PKR 15,000 per night
 Operating Expenses: 60% of revenue
 Tax Rate: 30%

5. Project Scope:

 Products: Hotel services, rooms, restaurant, event spaces.


 Location: Lahore, Gulberg, Pakistan.
 Land and Building: 50,000 sq. ft. with 100 rooms.
 Plant and Machinery: Furnishings, kitchen equipment, etc.
 Working Capital Requirements: Covers day-to-day operational costs.
6. Payback Period, NPV, and IRR:

 Payback Period: Determine when the initial investment is recovered.


 Net Present Value (NPV): Discount future cash flows to present value.
 Internal Rate of Return (IRR): Find the rate of return that makes NPV zero.

7. Investor's Required Rate of Return:

Assuming a 25% required rate of return.

Conclusion/Analysis:

 Payback Period: Ideally, shorter is better.


 NPV: A positive NPV indicates a potentially profitable project.
 IRR: Should be greater than the required rate of return for a viable investment.

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