Question
India Year 1 Year 2 Year 3 Year 4 Year 5 Number of employees 25 25 25 25 25 Hours per Shift 8 8 8
India
Year 1
Year 2
Year 3
Year 4
Year 5
Number of employees
25
25
25
25
25
Hours per Shift
8
8
8
8
8
Total Shifts per Year
250
250
250
250
250
Average Wage per Hour
$10.50
$11.55
$12.71
$13.98
$15.37
Number of Products Produced per Hour
2
75
75
75
75
Direct Labor Cost
$525,000.00
$577,500.00
$635,250.00
$698,775.00
$768,653.00
Indirect Cost (180% of Direct Costs)
$945,000.00
$1,039,500.00
$1,143,450.00
$1,257,795.00
$1,383,575.00
Shipping Cost ($5.00 per item) @ 4% increase
$500,000.00
$598,000.00
$715,208.00
$855,389.00
$889,604.00
Demand
100,000
110,000
121,000
133,100
146,410
Price of each Insulin Pump
$100.00
$105.00
$110.25
$115.76
$121.55
Total Revenue
$10,000,000.00
$11,550,000.00
$13,340,250.00
$15,407,989.00
$17,796,227.00
Working Capital Requirements
$1,200,000.00
$1,386,000.00
$1,600,830.00
$1,848,959.00
$2,135,547.00
Net Inflows
$6,830,000.00
$7,949,000.00
$9,245,512.00
$10,747,071.00
$12,618,849.00
Discount Rate
23.30%
Net Present Value
$24,517,963.00
Initial outlay = 140,000
I need help calculating the capital budgeting for the India situation
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Technical Analysis The Complete Resource For Financial Market Technicians
Authors: Charles Kirkpatrick, Julie Dahlquist
3rd Edition
0134137043, 978-0134137049
