Particular Y1 Y2 Y3 Y4 Y5

Varibale cost/kg 6.5 6.5 6.5 6.56.5

SP/kg 10 10 10 10 10
Contribution/kg 3.5 3.5 3.5 3.53.5
Required rate of return 10.9 10.9 10.9 10.9
10.9
Sales Qty 800000 1600000 1600000 1600000
1600000
Total Contribution 2800000 5600000 5600000 5600000
5600000
Fixed cost 1700000 1700000 1700000 1700000
1700000
Depreciation 1000000 1000000 1000000 1000000
1000000
EBT 100000 2900000 2900000 2900000
2900000
Tax 25000 725000 725000 725000
725000
PAT 75000 2175000 2175000 2175000
2175000
Depreciation 1000000 1000000 1000000 1000000
1000000
Cash flow from Op. act. 1075000 3175000 3175000 3175000
3175000
Cash flow from Scrap Value 0 0 0 1000000 0
Working Capital freed 1200000
Total Cashflow 1075000 3175000 3175000 3175000 5375000
Discount Factor 10.9% 0.9017 0.8131 0.7332 0.6611 0.5961
Discounted value 969341.74932 2581550.57 2327818.37 2099024.68 3204208.28
Total Cash inflow 11181943.649
6000000
1200000
Total Cash outflow 7200000
NPV 3981943.649

RF RM BETA Exp. Return

G bond 6 10 1 10.9
T bill 6.9 10.9 1 10.9
(7-8-9)
25%