An Investment Analysis of Flat Bed Dryer
Autor: clndp • October 3, 2016 • Lab Report • 710 Words (3 Pages) • 1,075 Views
Celine Joy A. Dela Peña Sept. 20, 2016
2011-45376 Sept. 27, 2016
Exercise no. 6
An Investment Analysis of Flat Bed Dryer
Sample computations:
- Electricity: P15.00 x 3 kW x 16 hours x 90 days = 64,800
- Kerosene: P40.00 x 2 Li x 16 hours x 90 days = 115,200
- Rent: P100 x 100 square meters = 10,000
- Labor: 2 laborers x P500.00 x 90 days = 90,000
- Repair & maintenance: P180,000.00 x 2% = 3,600
- Interest: P180,000.00 x 8% = 14,400
Total Variable Cost = P 298,000.00
Total weight of grains per year:
[pic 1]
- Find the cost of drying per kg of wet grains using 20% mark-up.
Cost of drying/kg grain [pic 2]P 0.8778
Benefits = BEP X 1.2 = P 1.0534 x 360,000 kg = P 379,224.00 /year
- Make an investment analysis using NPV and BCR. Is it worth investing in a dryer? Justify your answer.
Total Discounted Benefits = 2,308,347.59
Less (Total Discounted Cost) _ = _ 1,941,484.00
NPV (Net Present Value) = 366,863.59
Benefit-Cost Ratio [pic 3]
Yes, it is worth investing because the NPV has a positive value, while the BCR has a value greater than 1, which means that the benefits out weighted the costs.
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