237280309-business-plan-for-solar-car.pdf

BUSINESS PLAN PRESENTED BY-GROUP:3 ATUL KUMAR KARN ----------------------------

Q1703A19

DEEPIKA BHAGAT ------------------------------

Q1703A13

DEEPKAMAL KAUR -----------------------------

Q1703A11

MANDEEP SINGH ------------------------------

Q1704A14

PRIYANKA GUPTA ------------------------------

Q1703A06

RAMANJEET KAUR ---------------------- -------

Q1703A14

CONTENTS 

    

BUSINESS PLAN (GENERAL INFORMATION) FEASIBILITY ANALYSIS MARKETING PLAN OPERATIONS PLAN HR PLAN FINANCIAL PLAN

SUMMARY $25,000,000

$20,000,000

$15,000,000

Sales Gross Margin

$10,000,000

Net Profit

$5,000,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

OBJECTIVES 







Sales revenue should be 200 crores for the first year. Establish long term relationships with suppliers of tyres and seat makers. Breakeven within two years of business. Net profit margin should be 10% in first year and increase it to 14% in second year achieving operational efficiency

MISSION 

“To build a solar car, to benefit the mankind and environment

with

long

term

sustainability,

transforming the way this world moves with

innovation.

VISION 

To be numero uno solar car company, keeping customers and environmental sustainability up front

OUR BUSINESS IDEA SOLAR WALKING CAR

SOLAR WALKING CAR 

PRODUCT NAME: SUNSHINE



TAGLINE: “Move freely and move free, Its Sunshine’s promise”

SOLAR ENERGY AND OUR IDEA 

Developing a solar energy driven car



Solar walking cars combine technology typically used

in

the

aerospace,

bicycle,

alternative

energy and automotive industries. 

Solar cars are powered by the sun's energy. In fact, 51%

of

sunlight

atmosphere.

actually

enters

the

Earth's

PRODUCT SUMMARY 

 



   

Suntech solar private limited will be selling two versions of solar walking car with top speed of 40KMPH (A) and 50KMPS (B). The price will be 1 lac for A version and 1.3 lac for B version. Product Description Solar car includes the following components along with repective cost: Solar Array and Power trackers : 40000 Batteries : 6000 Motor & Controller : 5000 Chassis, Seats and other components : 15000 Tires, Brakes and Hubs : 10000

PROPOSED DESIGN

LOGO AND SYMBOL 

SUNSHINE represents the product name and act as symbol.



The middle circle represents the sun.



The orange and yellow colour of the sun represents the sun rays.

FEASIBILITY ANALYSIS

WHAT MAKES OUR SOLAR CAR FEASIBLE 

 









Financial analysis (Profitable Business????) 1000 WATTS = 1.341 horsepower Solar panel cost per watt is around $1 without subsidy cost is roughly 50000 INR of solar panel alone for 1000 watt (1.341) International Manufacturers of solar panel Shanghai Tongjian Shike Solar Energy Co., Ltd. ($0.80-1.20 per watt) Jiaxing Feiya Lighting Electrical Co., Ltd. ($1.201.50 per watt)

Continued….. 

  

Other equipments.. Electrical grid (15000 INR) Battery (5000) Tyres, seats,body (30000)

BUSINESS PLAN(GENERAL INFORMATION)

FUNCTIONAL AREA REPORTS

There are four essential elements required to test whether or not a potential business idea is feasible: 

Marketing



Operations



HR



Finance

MARKETING PLAN

Market research will involve 

What is the product and/or service that is the basis for the business?



Who is the customer likely to be?



What is the benefit of your product/service to the

customer? 

How will the benefit be delivered?

CONTENTS      

Product Features STP of Market Market Reasearch SWOT analysis Competitive Analysis Marketing tools and strategy

PRODUCT FEATURES 

 

Shape and design Costing Weight capacity

KEY ADVANTAGES  No running cost  No registration required  Reduced license requirements  Environment friendly  Using alternative source of energy  No pollution certificate and insurance liability

SEGMENTATION,TARGETING,POSITIONING SEGMENTATION

TARGETING

Target customer: Middle class



Geographic segmentation



•

Weather



Differentiated targeting

•

Location



Target-market: rural and semi-



Demographic segmentation

urban customers. POSITIONING

• 

Income based(middle class) 

Small House hold car



Substitute

Behavioral segmentation

SWOT ANALYSIS Strengths  Eco friendly  No running cost  Green project Weaknesses  Cloudy days (can be overcome by electrical additions)  Top speed 30-50 kms/h (two versions)  Max run 30-40 kms after one charging Opportunities  First mover  High demand for eco friendly projects  Subsidized solar panels Threat  Easily imitable.

MAIN COMPETITORS IN SOLAR CAR INDUSTRY 

  



They are not exactly the competitors because they are developing racing and high speed solar cars. But we are targeting on the solar walking car which is quite different from them: SUNRAYCER ALPHA CENTAURI AURORA ONGOING SOLAR PROJECTS

BUSINESS STRATEGY 

BLUE OCEAN STRATEGY



A NEW PRODUCT IN EXISTING MARKET



DRIVEN BY INNOVATION AND PRODUCT LEADERSHIP

MEDIA TO BE USED 

  

NEWSPAPER ADVERTISEMENT BUSINESS MAGAZINES TV AD RADIO AD

MARKETING TOOLS LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR: PRE-LAUNCH:

ROAD SHOW

LAUNCH:

TEST DRIVE

POST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES MARKETING MEDIUM: The Hindu, Times of India CNBC AWAAZ,STAR NEWS.

HR AND OPERATIONS PLAN OF A SOLAR WALKING CAR “SUNSHINE”

Operations plan 









Market research is prerequisite A hypothetical data is assumed (can’t spend money in real ) Operational plan will be based upon this research for demand of such products in the market Pilot testing will be done with not full setup for meeting the demand Demand is assumed to be 2000 cars in first month based on research.

Plant 

  



Smaller setup 10 acre land near Jalandhar area Cost will be around 5 crores Suppliers are available here ( A similar company speedways is operating here) Assembly line, flooring, building and other infrastructure will add around 8 crore ( based upon speedways experience)

LEGAL AND ENVIRONMENTAL FEASIBILITY 

A manufacturing unit for solar car is legally possible



Rather, Indian government environmental friendly venture



Company will get itself registered as private limited company, raising funds from venture capitalist and owner’s or director’s fund

will

support

a

LEGAL CONSTRAINTS 





No direct legal constraints can be there Will be a private limited company under company act 1939 Board of directors will include founder members

Setting up a private limited company Procedure and mechanics 

INCORPORATION OF COMPANY Step 1 : Application For DIN 

The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006.



We need to file eForm DIN-1 in order to obtain DIN.

Step 2 : Acquire/ Register DSC  Acquire DSC -A licensed Certifying Authority (CA) issues the digital signature.  Register DSC -Role check for Indian companies is to be implemented in the MCA application.  Role check can be performed only after the signatories have registered their Digital signature certificates (DSC) with MCA.

Step 3 : New User Registration  To file an eForm or to avail any paid service on MCA portal, we are first required to register ourselves as a user in the relevant user category, such as registered and business user. Step 4 : Incorporate a Company  Apply for the name of the company[ Suntech autos Pvt. Ltd.] to be registered by filing Form1A for the same.

DOCUMENT REQUIRED: 





Form 1 : Application or declaration for incorporation of a company Form 32 : Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/ or undertaking to take and pay for qualification shares. Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will get changed to Approved.

ROC OFFICE: PUNJAB, CHANDIGARH & HIMACHAL PRADESH Dr. RAJ SINGH CORPORATE BHAWAN,PLOT NO.4 B, SECTOR 27 B,MADHYA MARG, CHANDIGARH - 160019 PHONE: 0172-2639415,2639416 FAX: 0172-2639416 [email protected]

Other legal compliance: Validity period of the Name approved: With effect from 24th July, 2011,the approved name is valid for a period of 60 days from the date of approval.If,the proposed company is not incorporated within such period,the name shall be lapsed and will be available for other applicants. 

Minimum number of directors required to form a company:Minimum no. of directors for Private Limited Company: Two Minimum Paid-up Capital at the time of registration :For Private Limited Company: Rs.1,00,000/-

Fees

Other Important aspects 

 





Banker to the firm (for credit period and short term loan advancements) Layout will include a assembly line It will include various component to be mounted All these component will form the part of engineers Skilled workers and supervisor will work at this functional part

Board of directors

Raman Grewal Executive director PSR : 10%

Deepika Bhagat Chief operatin g officer (COO) PSR : 10%

Priyanka Gupta Marketing Head PSR : 10%

Deepkamal Sachdeva HR director PSR : 10%

Mandeep Bhullar Managing director and CFO PSR : 10%

Atul Kumar Karn Chief executive officer (CEO) PSR : 10%

BOD continued…. 



  

Private company: ownership lies with BOD Fund raising : venture capitalist, loans advanced by directors, loans from banks PSR = profit sharing ratio 60% with owners 35% with venture capitalist

COMPONENTS INCLUDE 

1. Solar Array and Power trackers



2. Batteries 3. Motor & Controller 4. Instrumentation 5. Steering and suspension 6. Brakes 7. Tires and Hubs

 

  

1. Controller. 2. fans 3. power cable 4. AC motor 5. DC power cable

Cost of production per car S.NO

COMPONENT

COST( in INR)

1

Solar Array and Power trackers

20000

2

Batteries

6000

3

Motor & Controller

10000

4

Instrumentation (chassis)

20000

5

Steering and suspension

10000

6

Brakes , Tires and Hubs

6000

7

Other components

4000

MOTORS AND CONTROLLERS 

Choosing a motor depend on how much power it has. Controllers usually drive a particular motor. We will use the

brushless motors because these will increase the efficiency of motor upto94-99 percent.

STEERING AND SUSPENSION 



Front wheel steering as it tends to be more stable and safer.

In order to make proper suspension it will be soft enough to protect the car and solar array from unnecessary jolts and firm enough to provide a stable ride

DESIGN DIMENSIONS 

Following are the design dimensions we set for “SUNSHINE”: Position Length (LTR) or Height from the ground Entire frame 5.8 m Wheels 25 cm diameter, 10 cm thickness Driver cabin height 90 cm Full height 1.48m Tail length 3.4m

HR plan 



Will require a full fledge human resource even during initial setup Organizational hierarchy is given on next slide

ORGANIZATIONAL CHART CEO & PRESIDENT

VICE PRESIDENT

EXECUTIVE DIRECTOR

PRODUCTION DIRECTOR

FACTORY GM

R&D CENTER

OPERATIONS TEAM

QUALITY ASSURANCE TEAM

PRODUCTION TEAM

SALES DIRECTOR

MAINTAINENCE TEAM

SALES DEPTT

PURCHASING DEPTT

ACCOUNTS DEPTT

JOB DESCRIPTION JOB TITLE

QUALIFICATI ON

KEY SKILLS REQUIRED

EXPERIENC E REQUIRED

SALARY OFFERED

CEO/ PRESIDENT

MBA executive Leadership, 10-15 years Team building, project management, communicatio n skills

Rs. 1,00,000

VICE PRESIDENT

MBA executive Management skills in requisites, leadership, communicatio n skills

8-10 years

80,000

EXECUTIVE DIRECTOR

MBA executive Management of HR deptt, Quality and Operations

5-8 years

65,000

JOB TITLE

QUALIFICATI ON

KEY SKILLS REQUIRED

EXPERIENC SALARY E REQUIRED OFFERED

FACTORY GM

MBA

Training, Selecting, Motivating plant supervisory

4-5 years

50,000

PRODUCTIO MBA N DIRECTOR (operations)

Practical knowledge of working with production team

4-5 years

50,000

SALES DIRECTOR

Efficient managemen t of sales team, purchasing & accounts

4-5 years

50,000

MBA (marketing)

LEAVE POLICY 

  



Earned leave: 18 per year (for permanent employee) Casual leave: 12 per year (@1 per month) Sick or medical leave: Temporary employee : 10 days (can extend upto two weeks Permanent employee : 15-18 days ( max 3 weeks in continuum)

FINANCIAL PLAN

INITIAL INVESTMENT Start-up Requirements Start-up Expenses Legal Insurance Rent Computer Other Total Start-up Expenses

$5,000 $10,000 $5,000 $10,000 $100 $30,100

Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets

$200,000 $30,000 $10,000 $2,000,000 $2,240,000

Total Requirements

$2,270,100

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0 Expenses

Assets

Inv estment

Loans

Sales forecast Sales Forecast Unit Sales Version A Version B Total Unit Sales Unit Prices Version A Version B Sales Version A Version B Total Sales

Direct Unit Costs Version A Version B Direct Cost of Sales Version A Version B Subtotal Direct Cost of Sales

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

2,000 1,500 3,500

2,900 2,200 5,100

5,000 3,000 8,000

6,500 3,500 10,000

7,000 4,000 11,000

FY 2013 $2,000.00 $2,600.00

FY 2014 $2,000.00 $2,600.00

FY 2015 $2,000.00 $2,000.00

FY 2016 $2,000.00 $2,000.00

FY 2017 $2,000.00 $2,000.00

$4,000,00 0 $3,900,00 0 $7,900,00 0

$5,800,00 0 $5,720,00 0 $11,520,0 00

$10,000,0 00 $6,000,00 0 $16,000,0 00

$13,000,0 00 $7,000,00 0 $20,000,0 00

$14,000,0 00 $8,000,00 0 $22,000,0 00

FY 2013 $1,300.00 $1,560.00

FY 2014 $1,300.00 $1,560.00

FY 2015 $1,300.00 $1,200.00

FY 2016 $1,300.00 $1,200.00

FY 2017 $1,300.00 $1,200.00

$2,600,00 0 $2,340,00 0 $4,940,00 0

$3,770,00 0 $3,432,00 0 $7,202,00 0

$6,500,00 0 $3,600,00 0 $10,100,0 00

$8,450,00 0 $4,200,00 0 $12,650,0 00

$9,100,00 0 $4,800,00 0 $13,900,0 00

Yearly Sales $25,000,000

$20,000,000

$15,000,000

Version A Version B

$10,000,000

$5,000,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Key financial Indicators 3.0 2.5 2.0 1.5 1.0

FY 2013 FY 2014 FY 2015

0.5 0.0

FY 2016 FY 2017

Break Even Analysis Break-even Analysis

Monthly Units Break-even Monthly Revenue Break-even

32 $72,506

Assumptions: Average Per-Unit Revenue

$2,257.14

Average Per-Unit Variable Cost

$1,411.43

Estimated Monthly Fixed Cost

$27,167

BE continued… $20,000 $15,000 $10,000 $5,000 $0 ($5,000) ($10,000) ($15,000) ($20,000) ($25,000) ($30,000) 0

10

20

30

Monthly break-ev en point

Break-ev en point = where line intersects with 0

40

50

Pro Forma Profit and Loss FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Sales

$7,900,000

$11,520,000

$16,000,000

$20,000,000

$22,000,000

Direct Costs of Goods

$4,940,000

$7,202,000

$10,100,000

$12,650,000

$13,900,000

$115,000

$128,000

$141,000

$152,000

$154,000

$20,000

$22,000

$23,000

$25,000

$30,000

------------

------------

------------

------------

------------

Cost of Goods Sold

$5,075,000

$7,352,000

$10,264,000

$12,827,000

$14,084,000

Gross Margin

$2,825,000

$4,168,000

$5,736,000

$7,173,000

$7,916,000

35.76%

36.18%

35.85%

35.87%

35.98%

$130,000

$160,000

$180,000

$195,000

$210,000

Advertising/Promotion

$20,000

$22,000

$25,000

$28,000

$30,000

Other Sales and Marketing Expenses

$30,000

$35,000

$37,000

$40,000

$45,000

------------

------------

------------

------------

------------

$180,000

$217,000

$242,000

$263,000

$285,000

2.28%

1.88%

1.51%

1.32%

1.30%

$100,000

$120,000

$130,000

$140,000

$150,000

Marketing/Promotion

$3,000

$3,200

$3,600

$3,700

$4,000

Depreciation

$5,000

$6,000

$7,000

$8,000

$9,000

$25,000

$30,000

$35,000

$40,000

$45,000

$7,000

$7,500

$8,000

$9,000

$10,000

------------

------------

------------

------------

------------

$140,000

$166,700

$183,600

$200,700

$218,000

1.77%

1.45%

1.15%

1.00%

0.99%

Production Payroll Other Costs of Goods

Gross Margin %

Operating Expenses

Sales and Marketing Expenses Sales and Marketing Payroll

Total Sales and Marketing Expenses Sales and Marketing %

General and Administrative Expenses General and Administrative Payroll

Rent Other General and Administrative Expenses

Total General and Administrative Expenses General and Administrative %

Other Expenses: Other Payroll Consultants Other Expenses

$0

$0

$0

$0

$0

$5,000

$6,000

$7,000

$8,000

$9,000

$1,000

$1,200

$1,500

$1,700

$1,800

------------

------------

------------

------------

------------

Total Other Expenses

$6,000

$7,200

$8,500

$9,700

$10,800

Other %

0.08%

0.06%

0.05%

0.05%

0.05%

------------

------------

------------

------------

------------

$326,000

$390,900

$434,100

$473,400

$513,800

Profit Before Interest and Taxes

$2,499,000

$3,777,100

$5,301,900

$6,699,600

$7,402,200

EBITDA

$7,411,200

Total Operating Expenses

$2,504,000

$3,783,100

$5,308,900

$6,707,600

Interest Expense

$221,510

$221,510

$221,510

$221,510

$221,510

Taxes Incurred

$683,247

$1,066,677

$1,524,117

$1,943,427

$2,154,207

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

20.18%

21.61%

22.23%

22.67%

22.85%

Net Profit Net Profit/Sales

Profit Yearly $6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Gross Margin Yearly $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Projected Cash Flow Pro Forma Cash Flow FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Cash from Operations Cash Sales

$5,925,000

$8,640,000

$12,000,000

$15,000,000

$16,500,000

Cash from Receivables Subtotal Cash from Operations

$1,651,319 $7,576,319

$2,731,681 $11,371,681

$3,816,444 $15,816,444

$4,836,111 $19,836,111

$5,418,056 $21,918,056

$7,576,319

$11,371,681

$15,816,444

$19,836,111

$21,918,056

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Cash Spending Bill Payments

$345,000 $5,907,654

$408,000 $8,591,202

$451,000 $11,916,404

$487,000 $14,937,998

$514,000 $16,442,714

Subtotal Spent on Operations

$6,252,654

$8,999,202

$12,367,404

$15,424,998

$16,956,714

Subtotal Cash Spent

$6,252,654

$8,999,202

$12,367,404

$15,424,998

$16,956,714

Net Cash Flow Cash Balance

$1,323,665 $1,523,665

$2,372,478 $3,896,144

$3,449,041 $7,345,184

$4,411,113 $11,756,297

$4,961,342 $16,717,639

Cash Received

Additional Cash Received

Subtotal Cash Received

Expenditures Expenditures from Operations

Pro Forma Balance Sheet FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$11,756,297

$16,717,639

Assets Current Assets Cash

Projected Balance $1,523,665

$3,896,144

$7,345,184

Accounts Receivable

$323,681

$472,000

$655,556

$819,444

$901,389

Inventory

$411,667

$600,167

$841,667

$1,052,083

$1,157,292

Other Current Assets

$10,000

$10,000

$10,000

$10,000

$10,000

Total Current Assets

$2,269,012

$4,978,310

$8,852,407

$13,637,825

$18,786,320

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$5,000

$11,000

$18,000

$26,000

$35,000

Total Long-term Assets

$1,995,000

$1,989,000

$1,982,000

$1,974,000

$1,965,000

Total Assets

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Accounts Payable

$479,769

$694,154

$1,004,978

$1,247,733

$1,360,745

Current Borrowing

$100,000

$100,000

$100,000

$100,000

$100,000

$5,000

$5,000

$5,000

$5,000

$5,000

$584,769

$799,154

$1,109,978

$1,352,733

$1,465,745

Long-term Liabilities

$2,115,100

$2,115,100

$2,115,100

$2,115,100

$2,115,100

Total Liabilities

$2,699,869

$2,914,254

$3,225,078

$3,467,833

$3,580,845

Long-term Assets Long-term Assets Accumulated Depreciation

Liabilities and Capital Current Liabilities

Other Current Liabilities Subtotal Current Liabilities

Paid-in Capital

$0

$0

$0

$0

$0

($30,100)

$1,564,143

$4,053,056

$7,609,329

$12,143,992

Earnings

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

Total Capital

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Total Liabilities and Capital

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

Net Worth

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Retained Earnings

Pro Forma Balance Sheet FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$1,523,665

$3,896,144

$7,345,184

$11,756,297

$16,717,639

Accounts Receivable

$323,681

$472,000

$655,556

$819,444

$901,389

Inventory

$411,667

$600,167

$841,667

$1,052,083

$1,157,292

Assets Current Assets Cash

Other Current Assets

$10,000

$10,000

$10,000

$10,000

$10,000

Total Current Assets

$2,269,012

$4,978,310

$8,852,407

$13,637,825

$18,786,320

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$5,000

$11,000

$18,000

$26,000

$35,000

Total Long-term Assets

$1,995,000

$1,989,000

$1,982,000

$1,974,000

$1,965,000

Total Assets

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Accounts Payable

$479,769

$694,154

$1,004,978

$1,247,733

$1,360,745

Current Borrowing

$100,000

$100,000

$100,000

$100,000

$100,000

$5,000

$5,000

$5,000

$5,000

$5,000

$584,769

$799,154

$1,109,978

$1,352,733

$1,465,745

Long-term Liabilities

$2,115,100

$2,115,100

$2,115,100

$2,115,100

$2,115,100

Total Liabilities

$2,699,869

$2,914,254

$3,225,078

$3,467,833

$3,580,845

Long-term Assets Long-term Assets Accumulated Depreciation

Liabilities and Capital Current Liabilities

Other Current Liabilities Subtotal Current Liabilities

Paid-in Capital

$0

$0

$0

$0

$0

($30,100)

$1,564,143

$4,053,056

$7,609,329

$12,143,992

Earnings

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

Total Capital

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Total Liabilities and Capital

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

Net Worth

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Retained Earnings

Investment Analysis Start

Valuation

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Ending Valuation

$0

$0

$0

$0

$0

$17,591,000

Combination as Income Stream

$0

$0

$0

$0

$0

$17,591,000

10

10

10

10

10

2

2

2

2

2

Calculated Earnings-based Valuation

$15,940,000

$24,890,000

$35,560,000

$45,350,000

$50,260,000

Calculated Sales-based Valuation

$15,800,000

$23,040,000

$32,000,000

$40,000,000

$44,000,000

Calculated Average Valuation

$15,870,000

$23,965,000

$33,780,000

$42,675,000

$47,130,000

Percent Equity Acquired

35%

Net Present Value (NPV)

$9,929,661

Assumptions Discount Rate Valuation Earnings Multiple

Valuation Sales Multiple

10.00%

Justation or Payback period Payback

Projected Payback Calculation Investmen t Investment Cash Returns by Year

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$100,000

$100,000

$100,000

$100,000

$100,00 0

$500,000

Combination as Income Stream

($500,000)

$100,000

$100,000

$100,000

$100,000

$100,00 0

Cumulative Net Cash Flow to Investors

($500,000)

($400,000 )

($300,000 )

($200,000 )

($100,000 )

$0

Payback Period

5 years

Payback cont… $500,000 $400,000 $300,000 $200,000 $100,000 $0 ($100,000) ($200,000) ($300,000) ($400,000)