Cost of Equity 12%

Corporate tax 30%

Discount Period

Year 0 Year 1 Year 2

Net Room Revenue 13,200,000 € 13,464,000 €
Possible loss in revenue -132,000 € -134,640 €

Rent Revenue 170,000 € 170,000 €

Repair and Maintenance costs 10,000 € 10,000 €
Renovation costs -770,000 €
Cost of facility usage billed -55,000 € -55,000 €
EBITDA 125,000 € 125,000 €
Depreciation -128,333 € -128,333 €
EBIT -3,333 € -3,333 €
Corporate Tax 0 0
Net Income (Loss) -770,000 € -3,333 € -3,333 €

Operating Cash flow

EBIT 0€ -3,333 € -3,333 €
Depreciation 0€ -128,333 € -128,333 €
Corporate Tax 0€0 0
Operating Cash flow 125,000 € 125,000 €
Loss of Hotel revenue -132,000 € -134,640 €
Cash flow including opportunity cost -7,000 € -9,640 €

CAPEX -770,000 € 0€ 0€

Change in Net Working Capital

Ending Net Working Capital
Starting Net Working Capital
Change in Net Working Capital
Year 3 Year 4 Year 5 Year 6 Premises
14,137,000 € 14,844,000 € 15,140,000 € 15,443,000 €
-141,370 € -148,440 € -151,400 € -154,430 € 1%

178,500 € 178,500 € 187,425 € 187,425 € 5%

10,000 € 10,000 € 10,000 € 10,000 € 10,000 €
-770,000 €
-55,000 € -55,000 € -55,000 € -55,000 € -55,000 €
133,500 € 133,500 € 142,425 € 142,425 €
-128,333 € -128,333 € -128,333 € -128,333 € 6
5,167 € 5,167 € 14,092 € 14,092 €
1,550 € 1,550 € 4,228 € 4,228 € 30%
3,617 € 3,617 € 9,864 € 9,864 €

5,167 € 5,167 € 14,092 € 14,092 €

-128,333 € -128,333 € -128,333 € -128,333 €
1,550 € 1,550 € 4,228 € 4,228 €
131,950 € 131,950 € 138,198 € 138,198 €
-141,370 € -148,440 € -151,400 € -154,430 €
-9,420 € -16,490 € -13,203 € -16,233 €

0€ 0€ 0€ 0€
 Explanation
Given
Family customers

Growth every two years

Range from 770k to 1m

Pro-rata allocation

Years

of Net Income (0 if loss)

 Ke 12%
Corporate tax 30%
Discount rate 5%

Year 0 Year 1 Year 2

Net Room Revenue 13,200,000 € 13,464,000 €
Possible loss in revenue 660,000 € 673,200 €

Investment (Renovation) -800,000 €

Investment (Equipment) -900,000 €
Pub Revenue 4,672,000 € 4,905,600 €
Food & Beverage Costs -1,168,000 € -1,226,400 €
Salaries -747,520 € -784,896 €
Other Operating Expenses -1,027,840 € -1,079,232 €
Cost of facility usage -55,000 € -55,000 €
EBITDA -1,700,000 € 1,728,640 € 1,815,072 €
Depreciation -283,333 € -283,333 €
EBIT 1,445,307 € 1,531,739 €
Corporate Tax 433,592 € 459,522 €
Net Income (Loss) -1,700,000 € 1,011,715 € 1,072,217 €

Operating Cash flow

EBIT 0€ 1,445,307 € 1,531,739 €
Depreciation 0€ -283,333 € -283,333 €
Corporate Tax 0€ 433,592 € 459,522 €
Operating Cash flow 1,295,048 € 1,355,550 €
Loss of Hotel revenue 0€ 0€
Cash flow including opportunity cost 1,295,048 € 1,355,550 €
Year 3 Year 4 Year 5 Year 6 Premises
14,137,000 € 14,844,000 € 15,140,000 € 15,443,000 €
706,850 € 742,200 € 757,000 € 772,150 € 5%

-800,000 €
-900,000 €
5,150,880 € 5,408,424 € 5,678,845 € 5,962,787 € 5%
-1,287,720 € -1,352,106 € -1,419,711 € -1,490,697 € 25%
-824,141 € -865,348 € -908,615 € -954,046 € 16%
-1,133,194 € -1,189,853 € -1,249,346 € -1,311,813 € 22%
-55,000 € -55,000 € -55,000 € -55,000 € -55,000 €
1,905,826 € 2,001,117 € 2,101,173 € 2,206,231 €
-283,333 € -283,333 € -283,333 € -283,333 € 6
1,622,492 € 1,717,784 € 1,817,839 € 1,922,898 €
486,748 € 515,335 € 545,352 € 576,869 € 30%
1,135,745 € 1,202,448 € 1,272,488 € 1,346,029 €

1,622,492 € 1,717,784 € 1,817,839 € 1,922,898 €

-283,333 € -283,333 € -283,333 € -283,333 €
486,748 € 515,335 € 545,352 € 576,869 €
1,419,078 € 1,485,782 € 1,555,821 € 1,629,362 €
0€ 0€ 0€ 0€
1,419,078 € 1,485,782 € 1,555,821 € 1,629,362 €
 Explanation
Given
Family customers

Can range from 800k to 1,2m

64 covers/day@200€ /5% growth

of sales
of sales
of sales
Pro-rata allocation

Years

of Net Income (0 if loss)