This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Philippines” considers a 30-year period of study, starting 2021, after finishing its construction by 2020. All projections, and interest rates set by the company shall be evaluated within this 30-year period. The inflation rate shall not be included in the computation and a minimum attractive rate of return is set at 20%. Our company produces ear dropper solution which can be sold for PHP. 125.00 per bottle. Annually, the company can produce 1000 pallets of the product. Each pallet is stacked with 14 layers and each layer consists of 8 boxes. A box contains 12 bottles of ear dropper for wholesale purposes. In addition, the company also ventures for retail services. By-products are also produced by the company including excess chemicals that can be sold for P1,200 per 15 grams. IIVSDROP produces a total of 7,820 kg of these excess chemicals per year. The company shall be constructed at Nasugbu, Batangas for PHP. 550,320,000. The permits, land acquisition documents and other legal matters amounted to PHP 27,000,000. Below is the breakdown of yearly expenses of the company: See picture. Aside from the revenues from the products sold, annual benefits from the company include PHP. 15,000,000/yr. Assume a high demand for the product and by-products that all produced goods are sold each year within the study period. Calculate the following: 1. Internal Rate of Return (IRR)
This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Philippines” considers a 30-year period of study, starting 2021, after finishing its construction by 2020. All projections,
and interest rates set by the company shall be evaluated within this 30-year period. The inflation rate shall
not be included in the computation and a minimum attractive
Our company produces ear dropper solution which can be sold for PHP. 125.00 per bottle. Annually, the
company can produce 1000 pallets of the product. Each pallet is stacked with 14 layers and each layer
consists of 8 boxes. A box contains 12 bottles of ear dropper for wholesale purposes. In addition, the
company also ventures for retail services.
By-products are also produced by the company including excess chemicals that can be sold for P1,200 per
15 grams. IIVSDROP produces a total of 7,820 kg of these excess chemicals per year.
The company shall be constructed at Nasugbu, Batangas for PHP. 550,320,000. The permits, land
acquisition documents and other legal matters amounted to PHP 27,000,000.
Below is the breakdown of yearly expenses of the company: See picture.
Aside from the revenues from the products sold, annual benefits from the company include PHP.
15,000,000/yr.
Assume a high demand for the product and by-products that all produced goods are sold each year within the study
period. Calculate the following:
1.
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