Question
A project profile is created as follows: Expected Cash Inflow 7500000, Salaries & Bonus 1500000, Infrastructure Cost 250000, Travelling Cost 750000, Raw Material Cost 850000,
A project profile is created as follows:
Expected Cash Inflow 7500000, Salaries & Bonus 1500000, Infrastructure Cost 250000, Travelling Cost 750000, Raw Material Cost 850000, Labour Daily Wages 350000, Operating Cost 545000, Project Licence 1000000, Other Expenses 500000. Calculate Total Expenses, Total Profit & Profit %,
Now you need to know the profit scenario if some of your expenses increase or decrease.
Scenario 1 If the Project License cost 18 million, Raw material cost 1100000, Other Expenses 450000.
Scenario 2 Project cost to be at 17 million, Labor daily wages to be at 5 million and Operating cost to be at 3.5 million. Now you have listed out all the scenarios in the form.
Based on these scenarios, you need to create a scenario table about how it is going to impact your profit & profit %. (Use what if scenario analysis).
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