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5. Create a spreadsheet showing income, cash flow, and financing needs for dLite, assuming the following: a. In year 1, dLite incurs $500,000 of start
5. Create a spreadsheet showing income, cash flow, and financing needs for dLite, assuming the following: a. In year 1, dLite incurs $500,000 of start up costs, including travel, salaries, product design costs, etc. There are no sales. b. In year 2, dLite begins selling the product, and is able to achieve 0.01% penetration of the total rural households in India c. In year 3, they are able to achieve 0.03% penetration d. In year 4 and beyond, they are able to achieve 0.08% penetration e. Assume their sales mix is 90% of the S10, and 10% of the S250 each year. f. Assume they pay taxes on any income of 20%. g. Run your financials for 10 years, and at the end of that time, assume they sell the company for 20 times earnings. 5. Create a spreadsheet showing income, cash flow, and financing needs for dLite, assuming the following: a. In year 1, dLite incurs $500,000 of start up costs, including travel, salaries, product design costs, etc. There are no sales. b. In year 2, dLite begins selling the product, and is able to achieve 0.01% penetration of the total rural households in India c. In year 3, they are able to achieve 0.03% penetration d. In year 4 and beyond, they are able to achieve 0.08% penetration e. Assume their sales mix is 90% of the S10, and 10% of the S250 each year. f. Assume they pay taxes on any income of 20%. g. Run your financials for 10 years, and at the end of that time, assume they sell the company for 20 times earnings
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