Chapter 1: Financial Plan

1.1 Financial Budget

Project Implementation Cost		Sources of Financing
Item	Cost (RM)	Loan (RM)	Hire-Purchase	Own Contribution (RM)
Fixed Assets
Building	170,000.00	-	-	170,000.00
Hotel Equipment, Furniture & Fixture	72,295.00	-	-	72,295.00
Hotel Renovation	95,000.00	-	-	95,000.00
Office Equipment & Furniture	4,050.00	-	-	4,050.00
TOTAL	341,345.00	-	-	341,345.00
Working Capital (Monthly)
Worker's Salary	12,700.00	-	-	12,700.00
EPF Contribution	1,397.00	-	-	1,397.00
SOCSO Contribution	222.00	-	-	222.00
TOTAL	14,319.00			14,319.00
Operation Expense
Water and Electricity	2,750.00	-	-	2,750.00
Telephone and Internet	2,000.00	-	-	2,000.00
TOTAL	4,750.00	-	-	4,750.00
Other Expenses
Business Registration	500.00	-	-	500.00
Advertisement	5,000.00	-	-	5,000.00
Webpage Design	3,000.00	-	-	3,000.00
TOTAL	8,500.00	-	-	8,500.00
Contingencies @ 10%	36,691.40	-	-	36,691.40
SUB-TOTAL	403,605.40	-	-	403,605.40
*100% own contribution, no loan is required.

Name of Asset		Building
Cost (RM)		170,000.00
Method of Depreciation		Linear
Duration (years)		16

Year	Annual Depreciation (RM)	Accumulated Depreciation (RM)	Book Value (RM)
			170,000.00
1	10,625.00	10,625.00	159,375.00
2	10,625.00	21,250.00	148,750.00
3	10,625.00	31,875.00	138,125.00
4	10,625.00	42,500.00	127,500.00
5	10,625.00	53,125.00	116,875.00
6	10,625.00	63,750.00	106,250.00
7	10,625.00	74,375.00	95,625.00
8	10,625.00	85,000.00	85,000.00
9	10,625.00	95,625.00	74,375.00
10	10,625.00	106,250.00	63,750.00
11	10,625.00	116,875.00	53,125.00
12	10,625.00	127,500.00	42,500.00
13	10,625.00	138,125.00	31,875.00
14	10,625.00	148,750.00	21,250.00
15	10,625.00	159,375.00	10,625.00
16	10,625.00	170,000.00	-

Table 5.1: Depreciation of Building

Table 5.2: Depreciation of hotel equipment, furniture and fixture

Name of Asset		Hotel Equipment, Furniture & Fixture
Cost (RM)		72,295.00
Method of Depreciation		Linear
Duration (years)		10

Year	Annual Depreciation (RM)	Accumulated Depreciation (RM)	Book Value (RM)
			72,295.00
1	7,229.50	7,229.50	65,065.50
2	7,229.50	14,459.00	57,836.00
3	7,229.50	21,688.50	50,606.50
4	7,229.50	28,918.00	43,377.00
5	7,229.50	36,147.50	36,147.50
6	7,229.50	43,377.00	28,918.00
7	7,229.50	50,606.50	21,688.50
8	7,229.50	57,836.00	14,459.00
9	7,229.50	65,065.50	7,229.50
10	7,229.50	72,295.00	-

Name of Asset		Hotel Renovation
Cost (RM)		95,000.00
Method of Depreciation		Linear
Duration (years)		10

Year	Annual Depreciation (RM)	Accumulated Depreciation (RM)	Book Value (RM)
			95,000.00
1	9,500.00	9,500.00	85,500.00
2	9,500.00	19,000.00	76,000.00
3	9,500.00	28,500.00	66,500.00
4	9,500.00	38,000.00	57,000.00
5	9,500.00	47,500.00	47,500.00
6	9,500.00	57,000.00	38,000.00
7	9,500.00	66,500.00	28,500.00
8	9,500.00	76,000.00	19,000.00
9	9,500.00	85,500.00	9,500.00
10	9,500.00	95,000.00	-

Table 5.3: Depreciation of hotel renovation

Table 5.4: Depreciation of office equipment and furniture

Name of Asset		Office Equipment & Furniture
Cost (RM)		4,050.00
Method of Depreciation		Linear
Duration (years)		10

Year	Annual Depreciation (RM)	Accumulated Depreciation (RM)	Book Value (RM)
			4,050.00
1	405.00	405.00	3,645.00
2	405.00	810.00	3,240.00
3	405.00	1,215.00	2,835.00
4	405.00	1,620.00	2,430.00
5	405.00	2,025.00	2,025.00
6	405.00	2,430.00	1,620.00
7	405.00	2,835.00	1,215.00
8	405.00	3,240.00	810.00
9	405.00	3,645.00	405.00
10	405.00	4,050.00	-