A factory produces A product at a production rate of 10 000 tons / year. The remaining data are given below.
The price of 0.83 kg of raw material B required to produce 1 kg of A is 1200 TL / kg; The price of 0.62 kg of raw material C is 900 TL / kg. During the production, 0.4 kg / kg A by-product D occurs and its price is 400 TL / kg. In production, 600 liters of process water, 2 kWh of electricity and 1.3 kg of steam are used to produce 1 kg A. Worker wage is 2000 TL / kg A.
Fixed investment (FCI) amount is 98 x 109 TL and will be used in 2 years. The economic life of the factory is 15 years. The land price is 8 x 109 TL. A fixed investment amount of 20 x 109 TL has been received from the bank with an annual interest of 25% for 15 years. The sales (scrap) value of the factory at the end of 15 years is 15% of the fixed investment value. The tax rate will be applied as 40%.
The sales value of product A is 15 000 TL / kg, and the electricity, water and steam charges are 800 TL / kWh, 250 TL / m3, and 1500 TL / kg, respectively.
By making use of these data and your lecture notes;
a. Calculate the annual production cost, the annual production profit.
b. Draw the graph showing the Cumulative Cash Flow status of the factory versus time.
c. Calculate the Cumulative Cash Status (CCP), Cumulative cash Rate (CCR), Payback Period (Break-even Point, PBP), Return on Investment Rate (ROROI).