Average standard hook cycle - indirect cost, Financial Management

Assignment Help:

Following is the information furnished by a private port for investing Rs. 10 crore in a 20 Tonne Gantry Crane. The entire funding is from a loan carrying an interest of 11%. The loan is to be repaid in 4 equal installments.

The machine goes for maintenance at the end of the second year that would cost Rs. 8000000. The Direct Cost (including Salaries) amounted to Rs. 400000 Per Annum. The Indirect Cost apportioned Rs. 100000 Per Annum.

The Average standard hook cycle (lifting the cargo from ship and placing it on the ground) is 20 minutes and the crane's Average standard operation is 20hrs/day. The crane is not used for 5 days due to national holidays and 5 more days for general maintenance.

The Berth Occupancy is 60% and so the crane can be used for 60% of its usable time. The crane is eligible for a depreciation of 25% PA on SLM basis.

The firm charges Rs. 1500 per hook cycle. A tax rate of 40% may be assumed for computation purpose. Give your opinion if the firm can go ahead with the acquisition of the G. Crane assuming that there will be no change in any of the figures during the next four years.

 

 


Related Discussions:- Average standard hook cycle - indirect cost

Estimation of working capital, Q. Estimation of Working Capital? A firm...

Q. Estimation of Working Capital? A firm must estimate in advance as to how much net working capital will be required for the smooth operations of the business. Only then, it c

Working capital mini qs, Q. Working capital mini Qs? During January 20X...

Q. Working capital mini Qs? During January 20X4, Gazza Ltd made credit sales of £30,000 that have a 25% mark up. It also purchased £20,000 of inventories on credit. Calculat

Illustration of valuation using multiple discount rates, Illustration  ...

Illustration  Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:

Introduction to financial management, Introduction to financial management:...

Introduction to financial management: Meaning and defecation of the financial management Finance function Scope and content of financial function Functions and

M.r, capital structure

capital structure

Paper on Estate Planning (3–5 pages), Evaluate the tools commonly used in e...

Evaluate the tools commonly used in estate planning, including trusts, life insurance, and annuities. Compare the tools as to how they would apply for a couple in their mid-50s who

Factors affecting choice of a minimum cash balance amount, Explain the fact...

Explain the factors affecting the choice of a minimum cash balance amount. The smallest cash balance amount is determined by how easy it is to raise funds when needed, how expe

Treasury coupon securities and bills, Many practitioners feel that in...

Many practitioners feel that instead of using only on-the-run issues, all treasury coupon securities and bills are to be used for constructing the theoretical spo

Amount of the total liabilities, A firm has net working capital of -$800. L...

A firm has net working capital of -$800. Long-term debt is $15,400, total assets are $24,800 and fixed assets are $19,100. What is the amount of the total liabilities.

Valuation of bonds and shares, three years ago, SSSG Ltd. issued 10 years $...

three years ago, SSSG Ltd. issued 10 years $1000 bonds with a 7% coupon rate paid semi-annually, at par value. the market currently requires a 9% yield. what was the price of bond

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd