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  • Particulars Year 0 Year 1

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    Utsab Sen
    26 views4 pages
    - The initial investment was Rs. 3,00,000 for equipment costs and a change in net working capital of Rs. 1,00,000. Total units produced of the 8XX printers increased 10% each year. Ink prices increased 5% annually and revenue from existing printers increased with a 5% price increase each year. Variable costs per unit and fixed costs increased at rates of 5% and 3% respectively. The project had a positive net present value of Rs. 16.31 based on a 15% discount rate over 4 years.

    Original Description:

    Original Title

    I.Q

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    © Attribution Non-Commercial (BY-NC)

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    - The initial investment was Rs. 3,00,000 for equipment costs and a change in net working capital of Rs. 1,00,000. Total units produced of the 8XX printers increased 10% each year. Ink prices increased 5% annually and revenue from existing printers increased with a 5% price increase each year. Variable costs per unit and fixed costs increased at rates of 5% and 3% respectively. The project had a positive net present value of Rs. 16.31 based on a 15% discount rate over 4 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    26 views4 pages

    Particulars Year 0 Year 1

    Uploaded by

    Utsab Sen
    - The initial investment was Rs. 3,00,000 for equipment costs and a change in net working capital of Rs. 1,00,000. Total units produced of the 8XX printers increased 10% each year. Ink prices increased 5% annually and revenue from existing printers increased with a 5% price increase each year. Variable costs per unit and fixed costs increased at rates of 5% and 3% respectively. The project had a positive net present value of Rs. 16.31 based on a 15% discount rate over 4 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    Particulars

    Initial Investment:
    Equipment Cost
    Change In Net WC
    Total Units Produced Of 8XX
    Printers with 10% Increase Rate

    Year 0

    Year 1

    -1
    -1

    300000

    Ink Price With 5% Increase


    (3%Infaltion Rate+2%)

    Revenue Form Production

    600000

    Variable Cost Per Unit


    With 5% Increase Rate
    Variable Cost

    Total Units Of Exsisting 8XX


    Printers With 10% Increase

    0.5
    150000

    1000000

    Market Share @ 80%


    Price Per Unit With 5% Increase

    800000
    10

    Revenue From Exsisting Printers


    Variable Costs Per Unit With
    5% Increase
    Variable Costs

    8000000

    Total Revenue
    Total Variable Cost
    Fixed Cost With 3% Increase
    Depretiation Less Salvage Value
    Profit Before Tax
    Tax @ 34%

    8.6
    0.55
    0.5
    0.2
    7.35
    2.499

    PAT + Depretiation

    5.051

    0.5
    400000

    Total Cash Flow From The Project


    (PV @ 15%)

    Net Present Value


    Rs. 16.31

    -2

    Rs. 4.39

    CASE STUDY : I. Q., INC.


    Year 2

    Year 3

    Year 4

    300000
    1000000

    330000

    363000

    399300

    2.1

    2.205

    2.31525

    693000

    800415

    924479.325

    0.525

    0.55125

    0.5788125

    173250

    200103.75

    231119.8313

    1100000

    1210000

    1331000

    880000
    10.5

    968000
    11.025

    1064800
    11.57625

    9240000

    10672200

    12326391

    0.525
    462000

    0.55125
    533610

    0.5788125
    616319.55

    9.933
    0.63525
    0.515
    0.2
    8.58275
    2.918135

    11.472615
    0.73371375
    0.53045
    0.2
    10.00845125
    3.402873425

    14.55087033
    0.847439381
    0.5463635
    0.2
    12.95706744
    4.405402931

    5.864615

    6.805577825

    8.751664513

    Rs. 4.43

    Rs. 4.47

    Rs. 5.00

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