Scribd Logo
Upload

Welcome to Scribd!

  • Aggregate LTD Answer

    Uploaded by

    YenJang
    10 views1 page
    This document provides notes to an NPV calculation for Aggregate Inc. It details that: plant depreciation is a non-cash expense already included in calculations; additional overheads from the project should be included; material X will generate disposal savings of £4,000 per year from avoiding 4,000kg at £2 per kg; material X purchases will be 2,000kg in year 1 and 6,000kg in years 2 and 3; material Y of 9,000kg will be purchased annually at £20; and a consultancy fee is already committed so does not impact the time zero position.

    Original Description:

    Original Title

    Aggregate Ltd Answer.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides notes to an NPV calculation for Aggregate Inc. It details that: plant depreciation is a non-cash expense already included in calculations; additional overheads from the project should be included; material X will generate disposal savings of £4,000 per year from avoiding 4,000kg at £2 per kg; material X purchases will be 2,000kg in year 1 and 6,000kg in years 2 and 3; material Y of 9,000kg will be purchased annually at £20; and a consultancy fee is already committed so does not impact the time zero position.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    Aggregate LTD Answer

    Uploaded by

    YenJang
    This document provides notes to an NPV calculation for Aggregate Inc. It details that: plant depreciation is a non-cash expense already included in calculations; additional overheads from the project should be included; material X will generate disposal savings of £4,000 per year from avoiding 4,000kg at £2 per kg; material X purchases will be 2,000kg in year 1 and 6,000kg in years 2 and 3; material Y of 9,000kg will be purchased annually at £20; and a consultancy fee is already committed so does not impact the time zero position.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Aggregate Inc: NPV Calculation

    Figures in £000

    NOTES TO AGGREGATE INC NPV CALCULATION


    1 PLANT DEPRECIATION IS NON-CASH - PLANT NET COST
    IS ALREADY INCLUDED IN THE CALCULATION
    2 ONLY INCLUDE ADDITIONAL OVERHEADS ARISING FROM PROJECT
    3 MATERIAL X - OPPORTUNITY COST OF DISPOSAL SAVED IS
    4,0004,000
    kg @Kg CHF2
    @ £2
    4 MATERIAL X PURCHASES IN YEAR 1 WILL BE 2,000 kg AND THEN
    6,000 kg IN EACH OF YEARS 1 AND 2
    5 MATERIAL Y IS ALREADY IN CONSTANT USE, THUS
    9,000 KG WILL
    9,000BE PURCHASED
    kg will be purchasedANNUALLY @ CHF20
    annually @ £20
    6 THE CONSULTANCY FEE IS ALREADY COMMITTED WHETHER OR
    NOT THE PROJECT GOES AHEAD - THERE WILL BE NO
    ADDITIONAL CASH FLOW BASED UPON THE TIME ZERO
    POSITION.

    You might also like