Professional Documents
Culture Documents
HAMRO
GROCERY
Ashma Dixit
Dipin Pradhan
Ganesh Bist
Prabriti Neupane
Raksha Lama
Ujjwal Limbu Financial
Management
2019
OUR
/AGENDA
4
Agenda
Company
Profile
Initial Investment,
Expense and Revenue Model
Capital Budgeting
Techniques
Conclusion
Hamro • Online Business
Grocery • Groceries
• Operation inside the Kathmandu Valley
6
Flow of Goods
1 IMPORTS
2
STOCK
Dairy Dealers 3 DISTRIBUTION
Hamro
Grocery
Initial Investment
Initial Investment
.
Expenses Revenue
• Salary
• Subscription
Driver – 2, Helper - 2,
• Delivery Charge
Office Employees - 4
• Profit Margin
• Office Administration
• Online Advertisements
• Marketing Cost
• Office Rent
10
Capital Budgeting
Example
Financial Investment
Decision Decision
11
Cumulative Cash
Year Cash Flow (NRS) Flow
Pay Back Period
Year 0 -1600000.00
Year 1 500000.00 500000.00
=3 + (1600000-1576250)/206375
Year 2 525000.00 1025000.00
= 3.12 years
Year 3 551250.00 1576250.00
Year 4 206375.00 1782625.00
Year 5 727650.00 2510275.00
Year 6 836797.50 3347072.50
Year 7 903741.30 4250813.80
Year 8 948928.37 5199742.17
Year 9 996374.78 6196116.95
Year 10 1046193.52 7242310.47
12
3.12
13
4.35
15
Year 1 454545.45
Year 2 433884.30
Year 3 414162.28
Year 4 140956.90
.
Year 5 451813.40
.
Year 6 472350.37
.
Year 7 463762.18
Year 8 442682.09
Year 9 422560.17
Year 10 403352.89
.
NPV@10% = 2500070.05
16
Internal Rate of Return
34.15
18
Profitability Index
= 1+ 2500070.05/1600000
= 2.56
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