Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have provided the input table, How would I approach these questions? 830,000,000 90% d'Lite Financial Projections Assumptions: Total Rural Population in India Sales Mix

image text in transcribedI have provided the input table, How would I approach these questions?

830,000,000 90% d'Lite Financial Projections Assumptions: Total Rural Population in India Sales Mix 510 $250 Revenue/Unit S10 (rupees) Revenue/Unit S250 (rupees) Terminal Value Multiple of NI) Year 274.5 849.5 54.9 169.9 10% 446.34 1381.3 20 COGS, S10 (rupees) COGS S250 (rupes) Distrub. Costs 10 rupees) Distrub. Costs $250 (rupees) Startup Costs $500,000 Exchange Rate rupee/ 3 AutoSave on HUB om 75 1 2 d-Lite Case Questions (2) - Word Diana Giron DC File Insert Draw Review View Share Paste Dictate Editor Reuse Files Font Voice Editor Reuse Files Clipboard L 1 1 12 5 ST Home Design Layout References Mailings Help Calibri (flody 18 E Am B I J y nh x x 4 y Styles Editing Sensitivity * ADA - Aav APA - 21 Paragraph Styles Sensitivity !!! , 14 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 0.08% penetration d. In year 4, they are able to achieve 0.15% penetration e. In year 5 and beyond, they are able to achieve 0.20% penetration f. Assume their sales mix is 90% of the S10, and 10% of the S250 each year. g. Assume they pay taxes on any income of 20%. h. Run your financials for 10 years, and at the end of that time, assume they sell the company for 20 times earnings. Based on your spreadsheet, how much upfront capital will dLite need to raise? If the investors who provide that capital expect a 25% pretax return on their money, what % of the company do the founders of dLite need to give up? R. 17. T. 6 > III Sheet1 + lation Mode: Automatic Workhook Statistics 830,000,000 90% d'Lite Financial Projections Assumptions: Total Rural Population in India Sales Mix 510 $250 Revenue/Unit S10 (rupees) Revenue/Unit S250 (rupees) Terminal Value Multiple of NI) Year 274.5 849.5 54.9 169.9 10% 446.34 1381.3 20 COGS, S10 (rupees) COGS S250 (rupes) Distrub. Costs 10 rupees) Distrub. Costs $250 (rupees) Startup Costs $500,000 Exchange Rate rupee/ 3 AutoSave on HUB om 75 1 2 d-Lite Case Questions (2) - Word Diana Giron DC File Insert Draw Review View Share Paste Dictate Editor Reuse Files Font Voice Editor Reuse Files Clipboard L 1 1 12 5 ST Home Design Layout References Mailings Help Calibri (flody 18 E Am B I J y nh x x 4 y Styles Editing Sensitivity * ADA - Aav APA - 21 Paragraph Styles Sensitivity !!! , 14 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 0.08% penetration d. In year 4, they are able to achieve 0.15% penetration e. In year 5 and beyond, they are able to achieve 0.20% penetration f. Assume their sales mix is 90% of the S10, and 10% of the S250 each year. g. Assume they pay taxes on any income of 20%. h. Run your financials for 10 years, and at the end of that time, assume they sell the company for 20 times earnings. Based on your spreadsheet, how much upfront capital will dLite need to raise? If the investors who provide that capital expect a 25% pretax return on their money, what % of the company do the founders of dLite need to give up? R. 17. T. 6 > III Sheet1 + lation Mode: Automatic Workhook Statistics

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions