Xpress Tel
Initial price Initial variable costs Initial sales units Initial fixed costs Initial investment Salvage value Interest Belarus tax rate Withholding tax rate Belarus cap. gains tax rate WACC Sales units growth FC growth Price/VC growth Working capital Project life
350 per unit in BYN 120 per unit in BYN 120,000 3,500,000 in BYN 40,000,000 in USD 70,000,000 in BYN 11% 35.0% 10.0% 20.0% 15.0% 20.0% 10.0% 5.2% 10,000,000 in BYN 3 yrs
Exchange Rate Forecast US Inflation Forecast Belarus Inflation Forecast PPP (Chg of Value of Foreign Currency Year Exchange Rates
2.80% 5.20% -0.02281369 0 0.50000000
1 0.48859316
2 0.47744654
3 0.46655423 s/BYN
Year Sales units Price per unit VC per unit
0
2 144,000 368.20 126.24
3 Remaining years 172,800 387.35 in BYN 132.80 in BYN
120,000 350.00 120.00
Straight Line Depreciation %
10.00%
10.00%
10.00%
70.00%
Projections (Belarusian ruble Revenue 42,000,000.00 53,020,800.00 66,933,457.92 Variable costs 14,400,000.00 18,178,560.00 22,948,614.14 Fixed costs 3,500,000.00 3,850,000.00 4,235,000.00 Interest payments 1,100,000.00 1,100,000.00 1,100,000.00 Depreciation 8,000,000.00 8,000,000.00 8,000,000.00 Pretax profit 15,000,000.00 21,892,240.00 30,649,843.78 Tax 5,250,000.00 7,662,284.00 10,727,445.32 Net income 9,750,000.00 14,229,956.00 19,922,398.45 CF from operations-Subsidiary 17,750,000.00 22,229,956.00 27,922,398.45 Withholding taxes 1,775,000.00 2,222,995.60 2,792,239.85 BYN remitted after withholding taxes 15,975,000.00 20,006,960.40 25,130,158.61 CF from Salvage value 67,200,000.00 Total CF 15,975,000.00 20,006,960.40 92,330,158.61 Projections (US$ Exchange Rate Scenario #1 0.500000 0.488593 0.477447 0.466554 $/BYN Cash flows to parent 7,805,275.67 9,552,254.10 $ 43,077,025.81 CF from capital investments $(40,000,000.00) Total CF 40,000,000.00 7,805,275.67 $ 9,552,254.10 $ 43,077,025.81 NPV-Expected $ 2,333,916.39 IRR 17.6361%
* After-tax salvage value from subsidiary sales (BYN) Initial Investment 80,000,000 Cumulative Depreciation (Yr 3) 24,000,000 End Book Value (Yr3 56,000,000 Sale Price in Yr 3 70,000,000 Capital Gains 14,000,000 Taxes on Cap. Gain 2,800,000 After tax cash flow 67,200,000