The idea is set up a new business and do a budgeting plan for it.

Please estimate the revenues based on market research.

Set prices according to the market prices.

Cost of goods sold (COGS) could be estimated as 20% of the Prices per unit.

While they were doing their Business Plan, they took the following decisions:

Then plan to run the business at least, for 10 years.

The prices and wages have to be adjusted to the inflation. The European Central Bank has estimated the long-run inflation in the Euro-zone to be an annual 2%. They estimate that revenues can grow twice inflation rate

Things to keep in mind:

Initial Marketing (launching) Campaign and its estimation cost

Loan under French system. Consult the % interest rate

To evaluate the investment project, students have to do the following:

For assessing this investment, the required rate will be estimated using CAPM, considering Risk free rate as German federal Bonds, 10 years maturity (0.95%), market rate, as Ibex-35, last years return 7%, and risk will be considered by using a Beta of 1.60 (slightly above industry average)

For all the other assumptions, please clearly state them on the report.

1-A B 2 Initial Investment 3 4 5 F Total A *1 Income Statement 12 13 Revunas 14 Tatal Revenues 15 CCGS *6 Gross Margin 17 Acmn and selling Laperses 28 Deccaton and Ammortization FRIT 20 Interest Exa 21 LUI 22 12x (250) 23 Net Income 24 25 26 Cash How Statement 27 Net Income 28 D2acdat on 24 Ina ment 30 Desil Valu 31 32 Lash How 33 34 35 NPV 36 IRR 2 9 C 9 UMC4:00) a 3027-028-029+090 AVPTinancial information 1613,032:H3214032 -C322) D 1 UMID:D 1 --021 022 -D19 -D13 -D7 D =D27-328-329+030 UMILALDI 2 -21 822 -9 -88 -F7 D =L2-28-25+L30 3 -SUMIFARHOL -+F22 F22 -25 -F12 -F7 n =-2/+128-29+F20 G 4 SUMI04:00 62: 622 -619 -G13 -67 0 =527-28-329-630 H -SUMINA: -+-22 +22 -1119 -H1% -H7 0 =H27+1-28-1-29-1130 1-A B 2 Initial Investment 3 4 5 F Total A *1 Income Statement 12 13 Revunas 14 Tatal Revenues 15 CCGS *6 Gross Margin 17 Acmn and selling Laperses 28 Deccaton and Ammortization FRIT 20 Interest Exa 21 LUI 22 12x (250) 23 Net Income 24 25 26 Cash How Statement 27 Net Income 28 D2acdat on 24 Ina ment 30 Desil Valu 31 32 Lash How 33 34 35 NPV 36 IRR 2 9 C 9 UMC4:00) a 3027-028-029+090 AVPTinancial information 1613,032:H3214032 -C322) D 1 UMID:D 1 --021 022 -D19 -D13 -D7 D =D27-328-329+030 UMILALDI 2 -21 822 -9 -88 -F7 D =L2-28-25+L30 3 -SUMIFARHOL -+F22 F22 -25 -F12 -F7 n =-2/+128-29+F20 G 4 SUMI04:00 62: 622 -619 -G13 -67 0 =527-28-329-630 H -SUMINA: -+-22 +22 -1119 -H1% -H7 0 =H27+1-28-1-29-1130