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ABC Pharma Franchise Financial Overview

The document outlines the financial projections and operational details for ABC - Co., including contributions, expenses, and profit forecasts over a five-year period. It details the calculation of Free Cash Flow to Equity (FCFE) and highlights an Internal Rate of Return (IRR) of -17%. Key assumptions include sales growth, wage inflation, and initial investments for renovation and deposits.

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Pooja Adhikari
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12 views4 pages

ABC Pharma Franchise Financial Overview

The document outlines the financial projections and operational details for ABC - Co., including contributions, expenses, and profit forecasts over a five-year period. It details the calculation of Free Cash Flow to Equity (FCFE) and highlights an Internal Rate of Return (IRR) of -17%. Key assumptions include sales growth, wage inflation, and initial investments for renovation and deposits.

Uploaded by

Pooja Adhikari
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ABC - C

Drug Type Contribution Quantity Sold / Day Space Rquirement

Low Budget 25 150 Retail Shop


High Budget 60 100

Particular Amount Frequency

Personal Expenses 80000 Per Month


Other Operational Expenses 25% Of Contribution
Tax Rate In The Economy 35% Per Year

Particular Year - 0 Year - 1 Year - 2 Year - 3

Contribution 3558750 3736687.5 3923521.875


Rent 900000 900000 900000
Wages 960000 1027200 1099104
Operational Expenses 889688 934172 980880
Interest Expenses 216,000.00 216,000.00 216,000.00
Total Operating Expenses 2965687.5 3077371.875 3195984.46875
Earnings Before Tax 593062.5 659315.625 727537.40625
Income Tax Expense @ 35% 207571.875 230760.46875 254638.0921875
Profit After Tax 385490.625 428555.15625 472899.3140625

Calculation Of FCFE

Particular Year - 0 Year - 1 Year - 2 Year - 3

Equity Contribution - 1,200,000.00


Debt Issued / Repaid 1,800,000.00
Renovation Exp. - 2,000,000.00
Deposit - 1,000,000.00
Net Income 0 385490.625 428555.15625 472899.3140625
FCFE - 2,400,000.00 385,490.63 428,555.16 472,899.31

Internal Rate Of Return -17%


ABC - Co. - An Apollo Pharma Franchi
Area Rent Psf. Source Weights Cost

750 100 Equity 40%


Debt 60% 12%

Assumption Drivers Intial Inve

No. Of Days In A Year 365 Renovation Expenses


Sales Growth And Average Price 5% Deposit
Wage Inflation In the Economy 7% Total

Year - 4 Year - 5

4119697.9688 4325682.86719
900000 900000
1176041.28 1258364.1696
1029924 1081421
216,000.00 216,000.00
3321965.7722 3455784.8864
797732.19656 869897.980791
279206.2688 304464.293277
518525.92777 565433.687514

Year - 4 Year - 5

- 1,800,000.00

1,000,000.00
518525.92777 565433.687514
518,525.93 - 234,566.31
ma Franchise
Ammount

1,200,000.00
1,800,000.00

Intial Investment

ovation Expenses 2,000,000.00 One Time


1,000,000.00 One Time
3,000,000.00

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