Phuket Beach Resort

Only available on StudyMode
  • Download(s) : 164
  • Published : April 4, 2013
Open Document
Text Preview
Weighted Average Cost of CapitalWeight(debt)*Cost(debt)*(1-Tax Rate) + Weight(equity)*Cost(equity)

Weight(debt)25%
Weight(Equity)75%
Cost(debt)10%
Cost(equity)12%
WACC10.75%

Area Under Construction 2,100 sq ft

Planet Karaoke Club-Higher investment
Capital Investment 10,00,000

Year 0 Year 1 Year 2 Year 3 Year 4
Revenue for Pub 20,40,000 20,40,000 21,42,000 21,42,000

Depreciation 2,50,000 2,50,000 2,50,000 2,50,000
Repair and Mantainence 10,000 10,000 10,000 10,000
Room Revenue Loss 16,50,000 16,83,000 17,67,125 18,55,500

EBT 1,30,000 97,000 1,14,875 26,500
Taxes 39,000 29,100 34,463 7,950
Net Income 91,000 67,900 80,413 18,550

Cash Flow (10,00,000) 3,41,000 3,17,900 3,30,413 2,68,550
DCF 3,07,901 2,59,181 2,43,235 1,78,505

IRR 10%
Discounted Payback period 4.06 Years
NPV (11,178.90)
Planet Karaoke Club-Lower Investment
Capital Investment 7,70,000

Year 0 Year 1 Year 2 Year 3 Year 4
Revenue for Pub 20,40,000 20,40,000 21,42,000 21,42,000

Depreciation 1,92,500 1,92,500 1,92,500 1,92,500
Repair and Mantainence 10,000 10,000 10,000 10,000
Room Revenue Loss 16,50,000 16,83,000 17,67,125 18,55,500

EBT 1,87,500 1,54,500 1,72,375 84,000
Taxes 56,250 46,350 51,713 25,200
Net Income 1,31,250 1,08,150 1,20,663 58,800

Cash Flow...
tracking img