Financial Arrangements

Funds are raised by the equal contribution of all

team members.
Capital Cost: Capital cost of the project is
estimated 1.2 millions and it will be arranged by the
organization’s members themselves.
Working Capital: Estimated cost of Rs 0.8
million is held as reserve to meet the working
capital needs.
Operating Cost: Operating costs are estimated
to be Rs. 1 million. And they will be financed by the
revenues generated by the project.
 Project cost estimate- Study estimate
Control Room Expenses

Items Total Cost (Rs.)

Building 500000
Furniture 200000
Laptops and Computers (15x25000) 375000
Total Expenses 1075000

Surveillance equipment

Items Total Cost (Rs.)

Microchip (2500x1800) 4500000

Generator for electricity backup 150000
Specific Student Cards (2500x80) 200000
Total Expenses 4850000
 Project cost estimate- Study estimate
Salary expenses

Items Total Cost (Rs.)

In charge (1x40000) 40000
Operating Staff (10x25000) 250000
Peon (1x12000) 12000
Security Guard (2x15000) 30000
Total Expenses 332000

Utility expenses

Items Total Cost (Rs.)

Electricity 50000
Water + Gas 10000
Internet 15000
Total Expenses 75000
 Project cost estimate- Study estimate

Total Estimated Project Cost

Items Total Cost (Rs.)

Control Room Exp 1075000

Surveillance Equipment 4850000

Salary Exp 332000

Utility Expenses 75000

Total Expenses 6332000

Project Cost Estimates- Definitive & Detailed
Estimates

 Definitive Cost Estimate

o After the calculation estimated cost of the project will be
about Rs. 6.4 million
 Detailed Estimate
o To ensure the efficiency and accuracy a detailed study
and calculation is held. Being the most accurate of all the
cost estimates, it suggests that the cost of project will be
about Rs. 6.7 million
Profitability and Cash flow Analysis

The economic and financial viability of the project can

be checked by this method. The techniques used for
this purpose are:

o Payback Period
o Return on Investment
o NPV (Net Present Value)
o Benefit Cost Ratio
 Payback Period

Year Cash flows Cumulative Cash Flows

0 6332000
------

1
2335000 2335000
2
2335000 4670000
3
2335000 7005000
4
2335000 9340000
5
2335000 11675000
 Payback Period

Payback Period = Initial Investment/Net Cash Flow PerP Period

= 6332000/2335000

= 2.712 Years

This prove that the project has capacity to recover his initial investment in
approximately in 2 years and 8 months.