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  • Cost Benefit Analysis: Financial Report

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    This financial report outlines the costs and benefits of a new business venture. The costs include fixed costs of Rs. 500,000, operating costs of Rs. 1,00,000, rent of Rs. 50,000, and other expenses totaling Rs. 12,00,000 in annual operating expenses. The benefits are an expected demand of 1000 customers per month, 100 purchases per month, generating Rs. 20,00,000 in annual cash inflow. The net annual cash inflow is Rs. 8,00,000 and the payback period is estimated to be 7.5 months.

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    Traffic light implementation in apparel industry.

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    Traffic

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    This financial report outlines the costs and benefits of a new business venture. The costs include fixed costs of Rs. 500,000, operating costs of Rs. 1,00,000, rent of Rs. 50,000, and other expenses totaling Rs. 12,00,000 in annual operating expenses. The benefits are an expected demand of 1000 customers per month, 100 purchases per month, generating Rs. 20,00,000 in annual cash inflow. The net annual cash inflow is Rs. 8,00,000 and the payback period is estimated to be 7.5 months.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    9 views1 page

    Cost Benefit Analysis: Financial Report

    Uploaded by

    uma
    This financial report outlines the costs and benefits of a new business venture. The costs include fixed costs of Rs. 500,000, operating costs of Rs. 1,00,000, rent of Rs. 50,000, and other expenses totaling Rs. 12,00,000 in annual operating expenses. The benefits are an expected demand of 1000 customers per month, 100 purchases per month, generating Rs. 20,00,000 in annual cash inflow. The net annual cash inflow is Rs. 8,00,000 and the payback period is estimated to be 7.5 months.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    Financial report

    Cost benefit analysis

    Cost Benefit
    a. Fixed Cost – 5,00,000 a. Demand per month= 1000
    b. Operating area cost- 1,00,000 b. Purchase frequency per month= 100
    c. Rent- 50, 00 c. Frequency per month= 2 laky
    d. Electricity- 5,000
    e. Housekeeping/ Security- 30,000
    f. Salary- 2,00,000
    g. Raw material-100,000 Total demand in value per annum= D*F*P
    h. Other-15,000 = Cash Inflow= 20 Lakh
    i. Marketing= 2,00,000
    Total operating expense per annum –
    =cash outflow= 12,00,000

    Net Annual Cash Inflow= cash inflow – cash outflow

    = 20, 00,000 – 12, 00,000

    = 8, 00,000

    Pay Back Period= Fixed cost

    Net Annual Cash Inflow

    = 5,00,00 *12 = 7.5 months

    8, 00,000

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