5.

0 FINANCIAL ESTIMATION
5.1 Start-up cost Start-up Costs Capital Expenditure: Administrative Business fixture and equipment:
i. ii. iii.

RM

Laptop (4 X RM 2,000.00) Desks ( 4 X RM 200.00) Chairs ( 4 X RM 100.00) Machine and other equipments

RM 8,000.00 RM 800.00 RM 400.00 RM10, 000.00

iv.

Other pre-Operation and Expenditure Deposit (rent, utilities, etc): i.

ii.

Building Utilities & renovation

RM 900.00 RM 900.00 RM 700.00

Business registration and licenses

Start-up Costs

RM 21,700.00

Salary per month: president manager : human resources manager, production & marketing, finance other workers : technician 1500 3800 3800 3800 5000

delivery man

1500

total

19400

5.2 Working Capital Working Capital (Months) Administrative Expenditure Salaries Rent Utilities Other Expenditure Fuel cost RM 800.00 RM 19,400.00 RM 900.00 RM 900.00 RM

Total Working Capital

RM 22,000

5.3 Raw material: RM1000 per unit x 500 units per month=RM500000 Total start-up capital = Start-up cost + Working Capital + Cost of component 1000 unit kits = RM 21,700.00 + RM 22,000 + RM 500,000.00 = RM 543,700.00

A. Finance Plan. i. Project Implementation Cost

Requirements Fixed Assets Business fixture & equipments Pre-operation & expenditure Working Capital Administrative 1

Cost

Loan

Hire-Purchase Cash

Own Contribution Existing F. Assets

19,200 2,500

19,200 2,500

months
21,200 21,200

Other Expenditure Raw Material TOTAL

800 500,000 543,700 50,000 50,000

800 450,000 493,700

ii. Asset: RM21,700

Depreciation of Asset

Life expectancy of asset is 100 weeks (approximately 2 years). Depreciation per month = RM 21700/100 = RM217

Period

Depreciation

Cumulative depreciation

Book value

1st month 2nd month 3rd month 4th month

RM868 RM868 RM868 RM868

RM868 RM1736 RM2604 RM3472

RM20832 RM19964 RM19096 RM18228

Loan amortization Amount loan: 50000: duration 48 months: interest RM104 period 1st year 2nd year principal 12500 12500 interest 1248 1248 loan balance 37500 25000

3rd year 4th year 1 units= RM1400 iii.

12500 12500

1248 1248

12500 0

Cash Flow Projection 1st month 2nd month 3rd month 4th month Total

Cash Flow Projection Cash flow Balance carry over Capital Loan Sale Total inflow Out flow Asset Raw material Salary Interest payment Payment (principal) Total outflow Balance iv. Sale Cost of good Gross profit Deduct Salary Interest Depreciation Net Profit v.

701,454 493,700 50,000 700000 1,243,700 21,700 500,000 19,400 104 1,042 542,246 701,454 700000 1,401,454 500,000 19,400 104 1,042 520,546 880,908

880,908 700000 1,580,908 500,000 19,400 104 1,042 520,546 1,060,362

1,060,362 700000 1,760,362 500,000 19,400 104 1,042 520,546 1,239,816 493,700 50,000 2,800,000 3,343,700 21,700 2,000,000 77,600 416 4168 2,103,884 1,239,816

Projection Income Statement per 4 Month RM 2,800,000 2,000,000 800,000 77,600 416 3,472 718,512 Balance Sheet RM Asset Cash Asset Total Asset Liability Capital Accumulative profit Liability + Equity 1,239,816 18228 1,258,044 45832 493,700 718,512 1,258,044

6.0 PROJECT MILESTONE

Task year mon th Discussion about product design that want to developed and also the function of product, the component needed and identify the supplier include the supplier to build the prototype Identify the target market Design the product Material selection of the product 3 6 1 9 1 2 3 6 2 9 1 2 3 6 3 9 1 2 3 6 4 9 1 2