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The case discusses a new venture creation and project cost estimation. Mr Salmon Alaska, an ex-investment banker wants to start the business in his hometown, Bangalore, India. He was unable to decide what type of business he should start. He met Mr Stephen, a business consultant, who suggested a lucrative business idea, manufacturing aerospace component parts. Mr Stephen argued that in India, the prospect of aerospace component manufacturing is very attractive and cost effective to compete with other counter players in the world. Mr Alaska was agreed to start the aerospace component manufacturing business unit. The name of the new unit was finalised as 'M/s Alaska Aerospace'. The initial investments will be arranged from bank loan and his own savings. A nationalised bank is agreed to provide Rs 50 lakhs term loan and working capital loan required for the business. Mr Stephen’s consultants projected the business investments, revenue and costs for next eight years. The owner proposes to commence the business from January 2002 and anxious to know the prospect and position of his business. The projected financial statements also need to be prepared as per bank financing purpose.