Project evaluation and feasibility study

- [ ] The answer is delivered either in the form of an excel file (preferred) or through a word file (not preferred). The question: The following are the data related to one of the investment projects under study, which takes one year to establish and has a useful life of 6 years: 1- The investment costs of the project are distributed as follows: 75 thousand dinars of land for the establishment of the project, 50 thousand dinars for buildings, 140 thousand dinars for machines, 90 One thousand dinars for cars, 10 thousand dinars for furniture, 8 thousand dinars for establishment expenses, 75 thousand dinars for working capital. 2- The annual operational costs are as follows: 210 thousand dinars for raw materials, 110 thousand dinars for wages and salaries, 7 thousand dinars for periodic maintenance, 50 thousand dinars for administrative expenses, 15 thousand dinars for fuel, 33 thousand dinars for packing materials, 15 thousand dinars for annual depreciation. 3- The project gets a tax exemption during the first three years of operation, then the tax is imposed on the project at a rate. 17% 4- The value of the last working capital is estimated at 30 thousand dinars. 5- The market share of the project is estimated at 2000 units annually, and the selling price of one unit is estimated at 290 dinars. Required: a. Preparing the project cash flow statement. ii. You evaluate the profitability of the project by calculating: Payback period. (The acceptable payback period is 4 years): the net present value at the discount rate of 15%: the profit level (evidence) at the previous discount rate. Internal rate of return. iii. What if the project's operating costs increased by 10%? Calculate past profitability indicators and comment on the answer.