project X is being con cost is estimated to be tsh 400,00 0 of which tsh 100,000 is for building, tsh 150,000 is for machinery and tzs 150,000 is for vihicles. the project would operate for 12 years and vihicles would have to be replaced in year 8. the project would produce tsh 1000units of output in year 1, 2000 units in each of year 2 to 11 and 1500 units in year 12. all units produced in each year will be sold for tsh 230 per unit. the operating cost are tsh 100 for materials and tsh 40 for labour per unit respectively and annual wage bill is estimated at tsh 30,000 per annum. required draw an annual statement of project costs and benefits in constant market price. compute NPV for the proposed project above using discount rate of 12% comment on your answer.
project X is being con cost is estimated to be tsh 400,00 0 of which tsh 100,000 is for building, tsh 150,000 is for machinery and tzs 150,000 is for vihicles. the project would operate for 12 years and vihicles would have to be replaced in year 8. the project would produce tsh 1000units of output in year 1, 2000 units in each of year 2 to 11 and 1500 units in year 12. all units produced in each year will be sold for tsh 230 per unit. the operating cost are tsh 100 for materials and tsh 40 for labour per unit respectively and annual wage bill is estimated at tsh 30,000 per annum. required draw an annual statement of project costs and benefits in constant market price. compute NPV for the proposed project above using discount rate of 12% comment on your answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:project X is being con cost is estimated to be tsh 400,00
0 of which tsh 100,000 is for building, tsh 150,000 is for
machinery and tzs 150,000 is for vihicles. the project
would operate for 12 years and vihicles would have to
be replaced in year 8.
the project would produce tsh 1000units of output in
year 1, 2000 units in each of year 2 to 11 and 1500 units
in year 12. all units produced in each year will be sold
for tsh 230 per unit.
the operating cost are tsh 100 for materials and tsh 40
for labour per unit respectively and annual wage bill is
estimated at tsh 30,000 per annum.
required
draw an annual statement of project costs and benefits
in constant market price.
compute NPV for the proposed project above using
discount rate of 12% comment on your answer.
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