Individual Assignment: Project Identification and Appraisal ABC firm has approved a project aimed at producing a perishable good after thorough ex-ante project analysis and estimated the following projected cash flow statement presented in Table 1.1. The figures in the Table are in millions. The discount rate for the projects is estimated to be 15 percent. 2024 2025 2026 650 850 1200 13000 17000 24000 Cash flows/Year 2020 2021 2022 2023 Cash Inflow Annual sales unit 0 500 560 600 Sales revenue (@ 20 birr/unit) 0 10000 11200 12000 Cash Outflow Initial investment 250000 0 0 Working capital 0 100 20 40 Operating costs (@ 10 birr/unit) 0 5000 5600 6000 Tax 0 50 150 200 Conversion factor to calculate shadow price 0 80 6500 300 0 60 8500 400 0 90 12000 500 0.6 Items Conversion factor (CF) Initial investment cost 0.85 Sales price 0.75 Operating price Working capital 0.45 for the first year and 0.55 for the rest Discount rate 0.9 A. Make the financial analysis using IRR and BCR. B. Derive the adjust the cash flow statement based on CF. C. Make economic analysis using IRR and BCR. Individual Assignment: Project Identification and Appraisal ABC firm has approved a project aimed at producing a perishable good after thorough ex-ante project analysis and estimated the following projected cash flow statement presented in Table 1.1. The figures in the Table are in millions. The discount rate for the projects is estimated to be 15 percent. 2024 2025 2026 650 850 1200 13000 17000 24000 Cash flows/Year 2020 2021 2022 2023 Cash Inflow Annual sales unit 0 500 560 600 Sales revenue (@ 20 birr/unit) 0 10000 11200 12000 Cash Outflow Initial investment 250000 0 0 Working capital 0 100 20 40 Operating costs (@ 10 birr/unit) 0 5000 5600 6000 Tax 0 50 150 200 Conversion factor to calculate shadow price 0 80 6500 300 0 60 8500 400 0 90 12000 500 0.6 Items Conversion factor (CF) Initial investment cost 0.85 Sales price 0.75 Operating price Working capital 0.45 for the first year and 0.55 for the rest Discount rate 0.9 A. Make the financial analysis using IRR and BCR. B. Derive the adjust the cash flow statement based on CF. C. Make economic analysis using IRR and BCR