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= (b) A manufacturing company is planning to introduce a new product in the market. The related financial data are given below: Facilities and Equipment
= (b) A manufacturing company is planning to introduce a new product in the market. The related financial data are given below: Facilities and Equipment cost = Tk. 60cr Working capital required = Tk. 10cr Expected profit = Tk. 6cr from year 1 to 2; Tk 10 cr from year 3 to 8; Tk. 12cr from year 9 to 12; Tk. 8cr from year 13 to 20 Yearly maintenance cost = Tk. 2 cr Repair cost at the end of 6th year = Tk. 5cr Overhauling cost at the end of 12th year Tk. 20 cr Salvage value of the equipment after 20 years Tk. 15 cr Working capital will be released at the end of 20th year. Decide whether the new product should be introduced or not if desired rate of return is 12%. 1 = - =
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