Planet Karaoke

Lower Limit
No. of Years
Depreciation/yr

Operating Cash Flow For Lower Limit

Year 1

Rental Income
less 25% Patronage Loss
Net Rental Income
less Relevant Expenses
Less Depreciation
Net Income Before Taxes
Less Taxes 30%
Net Income after Taxes
Depreciation
Operating Cash Flow

Operating Cash Flow For Upper Limit

Rental Income
less 25% Patronage Loss
Net Rental Income
Less Relevant Expenses
Less Depreciation
Net Income Before Taxes
Less Taxes 30%
Net Income After Tax
Depreciation
Operating Cash Flow

2040000
1650000
390000
10000
192500
187500
56250
131250
192500
323750

Year 1
2040000
1650000
390000
10000
250000
130000
39000
91000
250000
341000

NPV C
Scenario 1 (Lower Limit)

Annual Discount Rate

Initital Investment
1st year Returns
2nd year Returns
3rd year Returns
4th year Returns
NPV

10.75%
-770000
323750
300650
313162.5
251300
148,999.54

Scenario 2 (Upper Limit)

Annual Discount Rate
Initial Investment
1st year Returns
2nd year Returns
3rd year Returns
4th year Returns
NPV

10.75%
-1000000
341000
317900
330412.5
268550
- 10,093.82

IRR C
Initial Investment
Average Cash Flow
PV Factor
IRR

Payback Period
Investment

Returns
770000
770000
446250
145600
-167562.5

0
323750
300650
313162.5
251300

anet Karaoke Pub

770000
4
192500

Year 2

Upper Limit
No. of Years
Depreciation/yr

Year 3
2040000
1683000
357000
10000
192500
154500
46350
108150
192500
300650

Year 2

2142000
1767125
374875
10000
192500
172375
51712.5
120662.5
192500
313162.5

Year 3
2040000
1683000
357000
10000
250000
97000
29100
67900
250000
317900

Cash Flows

2142000
1855500
286500
10000
192500
84000
25200
58800
192500
251300

Year 4
2142000
1767125
374875
10000
250000
114875
34462.5
80412.5
250000
330412.5

NPV Calculation
PV Factor

Year 4

2142000
1855500
286500
10000
250000
26500
7950
18550
250000
268550

1
0.903
0.815
0.736
0.665

PV Factor

-770000
292346.25
245029.75
230487.6
167114.5
164978.1

Cash Flows
1
0.903
0.815
0.736
0.665

-1000000
307923
259088.5
243183.6
178585.75
-11219.15

IRR Calculation
Scenario1
770000
297215.625
2.5907117097

riod
Balance
770000
446250
145600
-167562.5
-418862.5

Scenario 2
1000000
314465.625
3.1799978138

1000000
4
250000

Year
Net Room Revenue
50% of guests
25% patronage loss

1
13200000
6600000
1650000

2
13464000
6732000
1683000

3
14137000
7068500
1767125

4
14844000
7422000
1855500

5
15140000
7570000
1892500

6
15443000
7721500
1930375

Debt
Composition
Rate
Tax

Weighted Average Cost of Capital

25%
10%
30%

10.75

Equity
75%
12%
30%

Operating Cash Flow For Lower Limit

Revenues
Less 25% lost Patronage
Net Revenue
Less Food and Beverages Cost
Less Other Operating Expenses
Less Depreciation
Less Repairs
Net Income Before Taxes
Less Taxes 30%
Net Income After Taxes
Depreciation
Operating Cash Flow

Operating Cash Flow For Lower Limit

Revenues
Less 25% lost Patronage
Net Revenues
Less Food and Beverages Cost
Less Other Operating Expenses
Less Depreciation
Less Repairs
Net Income Before Taxes
Less Taxes 30%
Net Income After Taxes
Depreciation
Operating Cash Flow

Scenario 1 (Lower Limit)

Annual Discount Rate
Initial Investment
1st Year Returns
2nd Year Returns
3rd Year Returns
4th Year Returns
5th Year Returns
6th Year Returns
NPV

Scenario 2 (Upper Limit)

Annual Discount Rate
Initial Investment
1st Year Returns
2nd Year Returns
3rd Year Returns
4th Year Returns
5th Year Returns
6th Year Returns
NPV

Initial Investment (Lower Limit)

Other Capital Expenditure
Total Initial Investment (Lower)
No. of Years
Depreciation

Year 1

Year 2

4672000
1650000
3022000
1168000
1027840
283333.333333333
10000
532826.666666667
159848
372978.666666667
283333.333333333
656312

Year 1

4905600
1683000
3222600
1226400
1079232
283333.333333333
10000
623634.666666667
187090.4
436544.266666667
283333.333333333
719877.6

Year 2
4672000
1650000
3022000
755500
664840
350000
10000
1241660
372498
869162
350000
1219162

4905600
1683000
3222600
805650
708972
350000
10000
1347978
404393.4
943584.6
350000
1293584.6

NPV Calculation
PV Factor
10.75%
-1700000
656312
719877.6
751988.98
785675.304
860101.5692
938931.64766
1,426,977.89

1
0.903
0.815
0.736
0.665
0.6
0.542

PV Factor
10.75%
-2100000
1219162
1293584.6
1353373.105
1416134.804
1502734.0692
1594025.02266
3,393,964.06

1
0.903
0.815
0.736
0.665
0.6
0.542

Beach Karaoke Pub

800000
900000
1700000
6
283333.333333333

Year 3

Year 4
5150880
1767125
3383755
1287720
1133193.6
283333.333333333
10000
669508.066666667
200852.42
468655.646666667
283333.333333333
751988.98

Year 3

5408424
1855500
3552924
1352106
1189853.28
283333.333333333
10000
717631.386666667
215289.416
502341.970666667
283333.333333333
785675.304

Year 4
5150880
1767125
3383755
845938.75
744426.1
350000
10000
1433390.15
430017.045
1003373.105
350000
1353373.105

5408424
1855500
3552924
888231
781643.28
350000
10000
1523049.72
456914.916
1066134.804
350000
1416134.804

ation
Cash Flows
-1700000
592649.736
586700.244
553463.88928
522474.07716
516060.94152
508900.95303172
1580249.84099172

Cash Flows
-2100000
1100903.286
1054271.449
996082.60528
941729.64466
901640.44152
863961.56228172
3758588.98874172

raoke Pub
Initial Investment (Upper Limit)
Other Capital Expenditure
Total Initial Investment (Upper)
No. of Years
Depreciation

Year 5

1200000
900000
2100000
6
350000

Year 6
5678845.2
1892500
3786345.2
1419711.3
1249345.944
283333.333333333
10000
823954.622666667
247186.3868
576768.235866667
283333.333333333
860101.5692

Year 5

5962787.46
1930375
4032412.46
1490696.865
1311813.2412
283333.333333333
10000
936569.020466667
280970.70614
655598.314326667
283333.333333333
938931.64766

Year 6
5678845.2
1892500
3786345.2
946586.3
832995.944
350000
10000
1646762.956
494028.8868
1152734.0692
350000
1502734.0692

5962787.46
1930375
4032412.46
1008103.115
887130.7412
350000
10000
1777178.6038
533153.58114
1244025.02266
350000
1594025.02266