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Investment
• Investment covers drones, equipment,
furniture, and operational setup • 3 DJI Matrice 350 RTK drones (flight time 55 min, payload capacity 2.7 kg, delivery box) • Contingency head ensures preparedness for unforeseen expenses • 93% investment from personal savings Major Expenses • Rent an office in Faisal Town • 1 office boy, 2 managers, 6 drone operators • repair and maintenance cost package for drone is 60000 per drone Projected Income Statement • Total deliveries in a year is assumed 19200 • Price per delivery would be 500 • Revenue, COGS is assumed to increase 5% every year. • Straight line depreciation • Tax 5% Projected Balance Sheet • A/R is assumed as 20% of revenue • A/P is assumed as 30% of COGS NPV • Present value of expected cash flows exceeds initial investment • undertaking the drone delivery project is financially viable • generate returns that exceed the company's cost of capital Ratio Analysis Liquidity Ratio Solvency Ratio 6000.00% 10.00 9.00 5000.00% 8.00 7.00 4000.00% 6.00 3000.00% 5.00 4.00 2000.00% 3.00 2.00 1000.00% 1.00 0.00 0.00% 1 2 3 4 5 1 2 3 4 5
Current Ratio Quick Ratio Cash Ratio
Debt to Equity Ratio Interest Coverage Ratio
Profitability Ratio Turnover Ratio
5.00 80% 70% 4.50 60% 4.00 50% 3.50 40% 3.00 30% 2.50 20% 10% 2.00 0% 1.50 1 2 3 4 5 1.00 Gross Profit Margin Operating Profit Margin 0.50 Net Profit Margin Return on Assets 0.00 1 2 3 4 5 Return on Equity Total Assets Turnover Ratio Working Capital Turnover Ratio