Q.4 Firm purchased plant Rs. 150,000; foundation cost paid 10,000 and installation Rs . 20,000. Project is forecast for five years, details are as follows: Sales 15000 units [growth of sales by 20% for first two years and then 10% for rest of the project life]. Working capital required at the start of project 10,000. Sales price 25 per unit Variable cost of sales Rs. 8 per unit Fixed expenses Rs. 10,000 (excluding depreciation) Firm uses diminishing Balance Method [rate 20% ] and tax rate 40 %. Assume that plant sold at the end of the project equal to its book value. Cost of capital 15 % . Calculate NPV and IR Use all 4 methods of depreciation
Q.4 Firm purchased plant Rs. 150,000; foundation cost paid 10,000 and installation Rs . 20,000. Project is forecast for five years, details are as follows: Sales 15000 units [growth of sales by 20% for first two years and then 10% for rest of the project life]. Working capital required at the start of project 10,000. Sales price 25 per unit Variable cost of sales Rs. 8 per unit Fixed expenses Rs. 10,000 (excluding depreciation) Firm uses diminishing Balance Method [rate 20% ] and tax rate 40 %. Assume that plant sold at the end of the project equal to its book value. Cost of capital 15 % . Calculate NPV and IR Use all 4 methods of depreciation
Chemistry
10th Edition
ISBN:9781305957404
Author:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Publisher:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Chapter1: Chemical Foundations
Section: Chapter Questions
Problem 1RQ: Define and explain the differences between the following terms. a. law and theory b. theory and...
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![Q.4 Firm purchased plant Rs. 150,000;
foundation cost paid 10,000 and installation Rs
. 20,000. Project is forecast for five years, details
are as follows: Sales 15000 units [growth of sales
by 20% for first two years and then 10% for rest
of the project life]. Working capital required at
the start of project 10,000. Sales price 25 per
unit Variable cost of sales Rs. 8 per unit Fixed
expenses Rs. 10,000 (excluding depreciation)
Firm uses diminishing Balance Method [rate
20% ] and tax rate 40 %. Assume that plant sold
at the end of the project equal to its book value.
Cost of capital 15 % . Calculate NPV and IR Use all
4 methods of depreciation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8462909d-8699-4504-ac58-4d9c630589bf%2F96e4abd7-0a21-4fd1-9e19-18eed1ef0912%2F7blpj1j_processed.png&w=3840&q=75)
Transcribed Image Text:Q.4 Firm purchased plant Rs. 150,000;
foundation cost paid 10,000 and installation Rs
. 20,000. Project is forecast for five years, details
are as follows: Sales 15000 units [growth of sales
by 20% for first two years and then 10% for rest
of the project life]. Working capital required at
the start of project 10,000. Sales price 25 per
unit Variable cost of sales Rs. 8 per unit Fixed
expenses Rs. 10,000 (excluding depreciation)
Firm uses diminishing Balance Method [rate
20% ] and tax rate 40 %. Assume that plant sold
at the end of the project equal to its book value.
Cost of capital 15 % . Calculate NPV and IR Use all
4 methods of depreciation
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