TRAVEL AGENT

MULTAN CANTT
ORGISNATIONAL SETUP
4
CHIEF EXECUTIVE

DIRECTOR DIRECTOR DIRECTOR
PRODUCTION
MARKETING
MANAGER
SALES STAFF

ADMINISTRATIVE
STAFF
ACCOUNTS STAFF

SUPERVISOR
PRODUCTION
PRODUCTION
STAFF
MAHBOOB SHEIKH AND COMPANY
CHARTERED ACCOUNTANTS
MULTAN
Feasibility Study
1
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TRAVEL AGENT
MULTAN CANTT
S.NO. PAGE NO.
1 PROJECT SUMMARY 1
2 FACILITIES FOR THE PROJECT 2
3 OTHER FACILITIES FOR THE PROJECT 3
4 MARKETING 4
5 COST OF PROJECT 5
6 DETAIL OF LAND & BUILDING 6
7 DETAIL OF OTHER COSTS 7
8 FORECAST OF EARNING 8
9 BALANCE SHEET 9
10 CASH FLOW STATEMENT 10
11 ASSUMPTIONS UNDERLYING CALCULATIONS 11 & 11-A
12 SALES ESTIMATED 12
13 MANPOWER 13
14 ADMINISTRATIVE ACCOUNT 14
15 APPORTIONMENT OF EXPENSES 15
16 FINANCIAL CHARGES 16
17 REPAYMENT SCHEDULE 17
18 COMMERCIAL BREAK EVEN 18
19 CASH BREAK EVEN 19
20 DEBT SERVICE COVERAGE 20
21 WEIGHTED AVERAGE COST OF CAPITAL 21
22 VALUE ADDED 22
23 PAY BACK PERIOD 23
24 INTERNAL FINANCIAL RATE OF RETURN 24
L I S T O F C O N T E N T S
D E S C R I P T I O N
TRAVEL AGENT
MULTAN CANTT
Rupees

NAME OF PROJECT ZOHAIB TRAVEL AGENCY
ADDRESS
CNIC # 36302-3677761-1
CELL # 0333-6108963
E-MAIL # forzohaib@gmail.com
NATURE OF BUSINESS ZOHAIB TRAVEL AGENCY
LEGAL STATUS SOLE PROPRIETOR SHIP
NAME OF DIRECTORS ZOHAIB TRAVEL AGENCY
EXPERIENCE
PURPOSE OF LOAN FOR land, building, electric installation, furniture & fixture & office equipment.
MEANS OF FINANCING Sponsors Equity
COST OF PROJECT 421,143
DEBT 290,161
EQUITY 130,982
DEBT EQUITY RATIO DEBT EQUITY
Fixed Cost: 65% : 35%
Total Cost: 69% : 31%
1
PROJECT SUMMARY
MULTAN CANTT
Proprietor has vast experience in travel agent business.
TRAVEL AGENT
MULTAN CANTT
LOCATION
1. AVAILABILITY OF LABOUR
Labor is frequently available at and around the location.
2. AVAILABILITY OF INFRASTRUCTURE
3. Free from other environmental hazards like water logging , floods , salinity etc.
2
FACILITIES FOR THE PROJECT
Power,gas, communication roads etc. are available in multan and is connected with other parts of the country
through direct dialling, rail & road.
TRAVEL AGENT sole proprietor will be situated in MULTAN Cantt Insha Allah. This location is also suitable for the
following reasons.
TRAVEL AGENT
MULTAN CANTT
Rupees
LAND
5.00 Marlas and will be purchased 0
BUILDING AND CIVIL WORK
576.00 Sq. ft. and will cost $ -
3
OTHER FACILITIES FOR THE PROJECT
TRAVEL AGENT
MULTAN CANTT
Tickets will be purchased locally.
There is a big demand of travel agents in the city and demand is increasing day by day.
Travel Agency is a profitable business in Pakistan.
MARKETING
4
TRAVEL AGENT
MULTAN CANTT
Rupees
Cost already
Met Sponsors Loan Total G. TOTAL
Land - - - - -
Building - 130,982 (130,982) - -
Electric Installations (WAPDA) - - 25,000 25,000 25,000
Furniture & Fixtures - - 200,000 200,000 200,000
Office Equipment - - 150,000 150,000 150,000
Preliminary & Pre-Operating Expenses - - - - -
CONTINGENCIES - - - - -
Fixed Cost 130,982 244,018 375,000 375,000
Salary & Repair exp - 46,143 46,143 46,143
Total Cost - 130,982 290,161 421,143 421,143
Debt 290,161
Sponsors 130,982
Total 421,143
Debt Equity ratio :
Fixed 65.07% : 34.93%
Total 68.90% : 31.10%
Notes:
A) Project cost includes land, building, electric installation, furniture & fixture, office equipment, preliminary & contingencies Rs. 1,266,888/-.
B) Working capital is Rs. 42,936/- Rupees for one-month.
COST TO BE MET
PARTICULARS
5
COST OF PROJECT (PROPOSED UNIT)
TRAVEL AGENT
MULTAN CANTT
Rupees
LAND - - -
Covered area Rate Total cost
- - -
-
-
-
TOTAL -
6
PROPOSED LAND & BUILDING
TRAVEL AGENT
MULTAN CANTT Rupees
No. Rate Amount
Electric Installations (WAPDA) 1 lum sum 25,000
Furniture & Fixtures lum sum 200,000
Office Equipment lum sum 150,000
Preliminary & Pre-Operating Expenses (1 % of land & building) -
CONTINGENCIES (1 % of land & building) -
7
DETAIL OF OTHER COSTS
8
TRAVEL AGENT
MULTAN CANTT
Rupees
Years 1st 2nd 3rd 4th 5th 6th 7th 8th
SALES OF TICKETS 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000
PURCHASE OF TICKETS (16,023,000) (17,167,500) (18,312,000) (19,456,500) (20,601,000) (20,601,000) (20,601,000) (20,601,000)
GROSS COMMISSION 777,000 832,500 888,000 943,500 999,000 999,000 999,000 999,000
ADMINISTRATIVE EXPENSES
Wages & Salaries 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867
Electricity 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311
Insurance 0.5 % of building & machinery - - - - - - - -
Repair & Maintenance 12,000 13,200 14,520 15,972 17,569 19,326 21,259 23,385
Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Misc. 215 237 260 286 315 346 381 419
Operating Expenses 553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482
Operating Profit 223,285 252,364 280,060 306,299 331,001 298,582 264,452 228,518
NON-OPERATING EXPENSES
Financial expenses (22,125) (19,223) (16,322) (13,420) (10,518) (7,617) (4,715) (1,814)
Profit before taxation 201,160 233,140 263,738 292,879 320,483 290,965 259,737 226,704
Taxation (20,116) (23,314) (26,374) (29,288) (32,048) (29,097) (25,974) (22,670)
Profit after taxation 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034
Drawings (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064) (30,605)
Profit Transferred to Balance Sheet 153,887 178,352 201,759 224,052 245,170 222,588 198,699 173,429
G P Ratio 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63%
N P Ratio 1.08% 1.17% 1.24% 1.29% 1.34% 1.21% 1.08% 0.94%
FORECAST OF EARNING
9
TRAVEL AGENT
MULTAN CANTT
Rupees
Years 0 th 1st 2nd 3rd 4th 5th 6th 7th 8th
CURRENT ASSETS
--------------
Cash/Bank 21,143 163,839 329,731 516,522 722,818 947,137 1,139,889 1,304,941 1,440,496
Advances/ Prepayments - 152,648 160,280 168,294 176,709 185,545 194,822 204,563 214,791
Store and spares - - - - - - - - -
Stock / Service Material - - - - - - - - -
Trade Debtors - 305,214 335,735 369,309 406,240 446,864 491,550 540,705 594,776
CURRENT ASSETS 21,143 621,701 825,747 1,054,125 1,305,767 1,579,546 1,826,262 2,050,210 2,250,064
LONG TERM DEPOSITS
News Paper Halka-600 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
FIXED ASSETS :
Fixed Assets 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000
Depreciation - (37,500) (75,000) (112,500) (150,000) (187,500) (225,000) (262,500) (300,000)

Net Fixed Assets 375,000 337,500 300,000 262,500 225,000 187,500 150,000 112,500 75,000

TOTAL ASSETS 421,143 984,201 1,150,747 1,341,625 1,555,767 1,792,046 2,001,261 2,187,709 2,350,063
LIABILITIES & EQUITY
CURRENT LIABILITIES
-------------------
Bank Borrowing - - - - - - - - -
Taxation - 20,116 23,314 26,374 29,288 32,048 29,097 25,974 22,670
Creditors - 425,325 446,591 468,921 492,367 516,985 542,834 569,976 598,475
Total Current Liabilities - 445,441 469,905 495,295 521,655 549,033 571,931 595,950 621,145
Bank Gurantee - - - - - - - - -
SUPPLIERS CREDIT
NBP Loan 290,161 253,891 217,621 181,351 145,080 108,810 72,540 36,270 (0.00)
Partner's Capital 130,982 130,982 284,869 463,221 664,980 889,032 1,134,202 1,356,790 1,555,489
Profit for the Year - 153,887 178,352 201,759 224,052 245,170 222,588 198,699 173,429

Total Equity 130,982 284,869 463,221 664,980 889,032 1,134,202 1,356,790 1,555,489 1,728,918
Total Liab. + Equity 421,143 984,201 1,150,747 1,341,626 1,555,767 1,792,045 2,001,261 2,187,709 2,350,063
0 0 0 (0) (0) 1 (0) 0 (0)
PROJECTED BALANCE SHEET
10
TRAVEL AGENT
MULTAN CANTT
Rupees

0 th 1st 2nd 3rd 4th 5th 6th 7th
RUPEES RUPEES RUPEES RUPEES RUPEES
A) CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before taxation - 201,160 233,140 263,738 292,879 320,483 290,965 259,737
Adjustment:
Depreciation - 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Preliminary expenses - 25,000
Financial Charges - 22,125 19,223 16,322 13,420 10,518 7,617 4,715
Op. P. Before W. Capital Changes - 285,785 289,863 317,560 343,799 368,501 336,082 301,952
CHANGES IN WORKING CAPITAL:
(Increase)/Decrease in C. Assets:
Stores & Spares - - - - - - - -
Stock in trade - - - - - - - -
Trade Debtors - (305,214) (30,521) (33,574) (36,931) (40,624) (44,686) (49,155)
Advances, Deposits and Prepayments - (152,648) (7,632) (8,014) (8,415) (8,835) (9,277) (9,741)
Increase/(Dec.) in C. Liabilities:
Short Term Bank Borrowings - - - - - - - -
Creditors, Accruals and Other Payables - 445,441 24,464 25,390 26,360 27,378 22,898 24,019
- (12,421) (13,690) (16,198) (18,986) (22,081) (31,066) (34,877)
Changes in Working Capital - 273,364 276,174 301,362 324,813 346,420 305,016 267,075
Less: Payments
Taxation - 20,116 23,314 26,374 29,288 32,048 29,097 25,974
Financial charges - 22,125 19,223 16,322 13,420 10,518 7,617 4,715
- 42,241 42,537 42,696 42,708 42,566 36,714 30,689
Cash Flow From Operating Activities - 231,123 233,636 258,666 282,105 303,854 268,302 236,386
B) CASH FLOW FROM INVESTING ACTIVITIES:
(Increase)/Decrease in Fixed Assets (375,000) - - - - - - -
(Increase)/Decrease in security deposits (25,000) (25,000) - - - - - -
Bank Guarantee - - - - - - - -
(Increase)/Decrease in Long Term Deposits - - - - - - - -
Net Cash from Investing Activities (400,000) (25,000) - - - - - -
C) CASH FLOW FROM FINANCING ACTIVITIES:
Increase /Decrease in Capital 130,982 - - - - - - -
Drawings - (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064)
Increase/(Decrease) in Lease Liability 290,161 (36,270) (36,270) (36,270) (36,270) (36,270) (36,270) (36,270)
National Bank Loan - - - - - - - -
Increase/(Decrease) in Suppliers Credit - - - - - - - -
Net Cash from Financing Activities 421,143 (63,427) (67,744) (71,875) (75,809) (79,535) (75,550) (71,335)
Net Increase/(Decrease) In Cash
and Cash Equivalent (A+B+C) 21,143 142,696 165,892 186,792 206,296 224,318 192,752 165,051
Cash And Cash Equivalent At The
Beginning Of The Year - 21,143 163,839 329,731 516,522 722,818 947,137 1,139,889
Cash And Cash Equivalent At The
end of the year 21,143 163,839 329,732 516,523 722,819 947,135 1,139,890 1,304,939
(0) 0 1 1 1 (2) 1 (2)
CASH FLOW STATEMENT
11
TRAVEL AGENT
MULTAN CANTT
Total Working Days = 360
No. of shifts = 1
Working Hours = 8
Capacity used 1st 2nd 3rd 4th 5th 6th 7th 8th
100% 100% 100% 100% 100% 100% 100% 100%
OPERATION TIME
Working Hours = 8 Hours per Day
ONE MONTHS EXPENSES
One month working capital requirements
Wages & Salaries 36,000
Electricity 6,000
Insurance 0.5 % of building & machinery -
Repair & Maintenance 1,000
Depreciation 3,125
Misc. 18
Capital Expenditure 46,143
Land -
Building -
Electric Installations (WAPDA) 25,000
Furniture & Fixtures 200,000
Office Equipment 150,000
Preliminary & Pre-Operating Expenses -
CONTINGENCIES -
375,000
One month total expenses 421,143
ANNUAL PURCHASES
Brand Supplier Product mix % Annual Sale commission @Annual IncomeMonthly Sale Monthly Purchases
PIA PIA 12.50% 3,000,000 2% 60,000 250,000 245,000
SAUDI ALIRLINE IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
SHAHEEN IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
EMIRATES IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
SRILANKA IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
EITHAD IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
QATAR IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
GULF IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
100.00% 24,000,000 1,110,000 2,000,000 1,907,500
Purchases of tickets
63,583 Rupees Daily
1,907,500 Rupees Monthly
22,890,000 Rupees Anually
Sales of tickets
Daily Sale of tickets 66,667 Rupees Daily
Monthly Sale of tickets 2,000,000 Rupees Monthly
Anually Sales of tickets 24,000,000 Rupees Anually
Commission 1,110,000 Rupees
ASSUMPTIONS UNDERLYING CALCULATIONS
11-A
RAW MATERIALS CONSUMED
AT 100 % CAPACITY
Daily Cost of tickets 63,583
Monthly Cost of tickets 1,907,500
Anually Cost of tickets 22,890,000
Estimated cost Rupees
1st 2nd 3rd 4th 5th 6th 7th 8th
CAPACITY USED 70% 75% 80% 85% 90% 90% 90% 90%
Total annual cost of Air Tickets 16,023,000 17,167,500 18,312,000 19,456,500 20,601,000 20,601,000 20,601,000 20,601,000
TOTAL ANNUAL COST 16,023,000 17,167,500 18,312,000 19,456,500 20,601,000 20,601,000 20,601,000 20,601,000
Rupees
POWER / FUEL
Rupees
1st 2nd 3rd 4th 5th 6th 7th 8th
Electric Expenses
Office 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311
72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311
Rupees 6,000 is assumed cost of electricity per annum with 5 % increase.
12
TRAVEL AGENT
MULTAN CANTT
Rupees
CAPACITY USED 70% 75% 80% 85% 90% 90% 90% 90%
SALES VOLUME
YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th
Sale of tickets 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000
TOTAL ANNUAL REVENUE 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000
Commission Income @ 5% 840,000
NOTE Assuming 5 % increase in the sale price.
SALES ESTIMATES
13
TRAVEL AGENT
MULTAN CANTT
Rupees
Description No. of Salary / Total
Employees Month
PLANT STAFF & LABOUR
--------------------------
Manager 1 8,000 96,000
TOTAL SALARY OF FAC.STAFF 1 96,000
Add: Fringe benefits 50% 48,000
144,000
5% increase in labour cost is assumed
1st 2nd 3rd 4th 5th 6th 7th 8th
TOTAL 144,000 151,200 158,760 166,698 175,033 183,785 192,974 202,622
Description No. of Salary / Total
Employees Month
ADMN. AND GENERAL STAFF
--------------------------
Workers 2 8,000 192,000
TOTAL SALARY OFFICE STAFF 2 192,000
Add: Fringe benefits 50% 96,000
288,000

5% increase is assumed in labor cost
1st 2nd 3rd 4th 5th 6th 7th 8th
288,000 302,400 317,520 333,396 350,066 367,569 385,948 405,245
TOTAL SALARY 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867
MANPOWER PLAN
14
TRAVEL AGENT
MULTAN CANTT Rupees
Year 1st 2nd 3rd 4th 5th 6th 7th 8th
ADMINISTRATIVE EXPENSES
Wages & Salaries 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867
Electricity 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311
Insurance 0.5 % of building & machinery - - - - - - - -
Repair & Maintenance 12,000 13,200 14,520 15,972 17,569 19,326 21,259 23,385
Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Misc. 215 237 260 286 315 346 381 419

553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482
5 % increase is assumed in all the expenses.

ADMINISTRATIVE ACCOUNT
15
TRAVEL AGENT
MULTAN CANTT
Rupees
( Cost of Building & Machinery for depreciation purposes )
Building
- 25,000.00 -
Preliminary & Pre-Operating Expenses - -
Contingencies - - -
- 25,000.00 0
DEPRECIATION SCHEDULE
PARTICULARS Cost Rate 1st 2nd 3rd 4th 5th 6th 7th
Land 0 0% - - - - - - -
Building 0 5% - - - - - - -
Electric Installations 25,000 10% 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Furniture & Fixtures 200,000 10% 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Office Equipment 150,000 10% 15,000 15,000 15,000 15,000 15,000 15,000 15,000
375,000 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Electric Installation
APPORTIONMENT OF EXPENSES
16
TRAVEL AGENT
MULTAN CANTT
Rupees
YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th
Mark-up on NBP Loan @ 8 % 22,125 19,223 16,322 13,420 10,518 7,617 4,715 1,814
- - - - - - - -
22,125 19,223 16,322 13,420 10,518 7,617 4,715 1,814
YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th
- - - - - - - -
Repayment-NBP LOAN 36,270 36,270 36,270 36,270 36,270 36,270 36,270 36,270
Total 36,270 36,270 36,270 36,270 36,270 36,270 36,270 36,270
Cumulative Payments 36,270 72,540 108,810 145,080 181,351 217,621 253,891 290,161
FINANCIAL CHARGES
17
TRAVEL AGENT
MULTAN CANTT
Rupees
Amount of Loan 290,161 Thousands
Repayment Period 8 Years
Nature of payments Yearly
Interest Rate 8.00%
LEASING BANK
O/ Bal. INTEREST PRINCIPAL INSTALMENT C/ BAL.
1 290,161 5,803 9,068 9,068 281,093
2 281,093 5,622 9,068 9,068 272,026
3 272,026 5,441 9,068 9,068 262,958
4 262,958 5,259 9,068 9,068 253,891
5 253,891 5,078 9,068 9,068 244,823
6 244,823 4,896 9,068 9,068 235,756
7 235,756 4,715 9,068 9,068 226,688
8 226,688 4,534 9,068 9,068 217,621
9 217,621 4,352 9,068 9,068 208,553
10 208,553 4,171 9,068 9,068 199,486
11 199,486 3,990 9,068 9,068 190,418
12 190,418 3,808 9,068 9,068 181,351
13 181,351 3,627 9,068 9,068 172,283
14 172,283 3,446 9,068 9,068 163,216
15 163,216 3,264 9,068 9,068 154,148
16 154,148 3,083 9,068 9,068 145,080
17 145,080 2,902 9,068 9,068 136,013
18 136,013 2,720 9,068 9,068 126,945
19 126,945 2,539 9,068 9,068 117,878
20 117,878 2,358 9,068 9,068 108,810
21 108,810 2,176 9,068 9,068 99,743
22 99,743 1,995 9,068 9,068 90,675
23 90,675 1,814 9,068 9,068 81,608
24 81,608 1,632 9,068 9,068 72,540
25 72,540 1,451 9,068 9,068 63,473
26 63,473 1,269 9,068 9,068 54,405
27 54,405 1,088 9,068 9,068 45,338
28 45,338 907 9,068 9,068 36,270
29 36,270 725 9,068 9,068 27,203
30 27,203 544 9,068 9,068 18,135
31 18,135 363 9,068 9,068 9,068
32 9,068 181 9,068 9,068 (0.00)
4,787,655 95,753 290,161 290,161 4,497,494
REPAYMENT SCHEDULE PROPOSED UNIT
18
TRAVEL AGENT
MULTAN CANTT
(000)
3RD YEAR
PARTICULARS VARIABLE FIXED TOTAL
------------
Admin. Selling & Gen .Exps. 604,340 3,600 607,940
Financial Charges - (16,321.55) (16,321.55)
604,340 (12,722) 591,619
19,200,000
18,595,660
(12,722) x 100
Break Even Point = -------------------- 0.00 %

Margin of safety = 100 %
COMMERCIAL BREAK EVEN
18,595,660
19
TRAVEL AGENT
MULTAN CANTT

Rupees
3RD YEAR
PARTICULARS VARIABLE FIXED TOTAL
-----------
Admin. Selling & Gen .Exps. 604,340 3,600 607,940
Financial Expenses - (16,322) (16,322)
Loan Repayment - 36,270 36,270
604,340 23,549 627,889
Sales 19,200,000
Contribution 18,595,660
23,549 X 100
Cash Break Even Point = ------------------- = 0.00 %
18,595,660
Margin of safety = 100 %
CASH BREAK EVEN
20
TRAVEL AGENT
MULTAN CANTT
000
DEBT SERVICE COVERAGE
Year 1st 2nd 3rd 4th 5th 6th 7th 8th
Net Profit 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034
Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Financial Charges (22,124.77) (19,223.16) (16,321.55) (13,419.94) (10,518.33) (7,616.72) (4,715.11) (1,813.51)
196,419 228,103 258,542 287,671 315,417 291,751 266,548 239,720
Financial Charges (22,124.77) (19,223.16) (16,321.55) (13,419.94) (10,518.33) (7,616.72) (4,715.11) (1,813.51)
Loan repayment - 36,270 36,270 36,270 36,270 36,270 36,270 36,270
(22,124.77) 17,047 19,949 22,850 25,752 28,653 31,555 34,457
Debt Service Coverage
With dep. 0.0 13.4 13.4 13.0 12.6 12.2 10.2 8.4
Without dep. 0.0 11.2 11.2 11.1 10.9 10.8 8.9 7.3
21
TRAVEL AGENT
MULTAN CANTT
Rupees
PARTICULARS AMOUNT MARK-UP COST
------------- -------------- ------------- --------

Long Term Loan 290,161 15.00 % 43,524
Cash Credit 0 0.36 /1000 0
Capital 130,982 20 % 26,196
------ ------
421,143 69,720
------ ------
Average Weighted Cost of Capital: 16.55 %
WEIGHTED AVERAGE COST OF CAPITAL
22
TRAVEL AGENT
MULTAN CANTT
000
YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th
Sales 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000
Less:
Admn. expenses 553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482
553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482

Value Added 16,246,285 17,419,864 18,592,060 19,762,799 20,932,001 20,899,582 20,865,452 20,829,518
VALUE ADDED
23
TRAVEL AGENT
MULTAN CANTT
000
Year 1st 2nd 3rd 4th 5th 6th 7th 8th
Net Profit 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034
Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Drawings (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064) (30,605)
191,387 215,852 239,259 261,552 282,670 260,088 236,199 210,929
Remaining Balance 229,756 13,903 (225,356) (486,908) (769,578) (1,029,666) (1,265,864) (1,476,793)

Capital Cost = 421,143
Pay Back Period = 6 Years APPROX
PAY BACK PERIOD
24
TRAVEL AGENT
MULTAN CANTT
Rupees
Year Operating Dep. Income Workers Net Cash
Profit Tax Fund Flow
----------------------------------------------------------------
0 - - - - (421,143)
1 223,285 37,500 20,116 0 240,669
2 252,364 37,500 23,314 0 266,550
3 280,060 37,500 26,374 0 291,186
4 306,299 37,500 29,288 0 314,511
5 331,001 37,500 32,048 0 336,453
6 347,551 37,500 32,048 0 353,003
7 364,928 37,500 32,048 0 370,380
8 383,175 37,500 32,048 0 388,627
9 402,334 37,500 32,048 0 407,786
10 422,450 37,500 32,048 0 427,902

65.06%
INTERNAL FINANCIAL RATE OF RETURN