Average standard hook cycle - indirect cost, Financial Management

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.



Posted Date: 3/9/2013 2:42:35 AM | Location : United States

Related Discussions:- Average standard hook cycle - indirect cost, Assignment Help, Ask Question on Average standard hook cycle - indirect cost, Get Answer, Expert's Help, Average standard hook cycle - indirect cost Discussions

Write discussion on Average standard hook cycle - indirect cost
Your posts are moderated
Related Questions
How to get cost differential when 100% done by a single party only.

1. Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of product or service costs.do you agree? Support your anser using examples 2. The

Determination of values The values for which NPV turns into zero are found by calculating the break-even values for the selected variables. Once determined these give an indica

a) IPod -Line / Mass production is most suitable given that Apple can sell the standardised product to mass markets across the world. Only small variations to the production proces

Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr

Briefly Explain Non Financial Objectives Monetary statements of any sort are only an expression of organisational activities that can be measured. Lots of the activities of an

State about the capital structure of financial risk Frequently the funds supplied to a firm by lenders will change its financial structure and charge for the funds would be bas

How can funds be raised Funds are raised from financial markets. Financial markets is a general term used todenote markets where financial securities are teat. These markets in

Explain about the Financial management Financial management is concerned with efficient use of a significant economic resource (input), namely, capital. It's, so, argued that p

Define depreciation expense as it appears on the income statement. How does depreciation affect cash flow? The term accounting depreciation is the allocation of an asset's init