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
Explain the Basis Risk Basis risk considers to the floating rates of two counterparties being pegged to two dissimilar indices.  In this situation, as the indexes are not compl

BigGardens Ltd (BigGardens) is a private company that owns and operates a chain of garden centres in the Bristol area.  The company has expanded rapidly over recent years, opening

Q. Show Maximum opportunity cost? If Marton hedges all its awaited dollar income over the next year at US$1.55: £l this will make guaranteed (ignoring other sources of risk) st

1. CompuSystems was supposed to pay a manufacturer $19,000 four month ago and another $14,000 two months from now.  CompuSystems is proposing to pay $10,000 today and the balance i

Principles of corporate governance Leadership: Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in dire

Account balance - Inherent risk At account balance / class of transaction level Balances susceptible to misstatement. History of errors. Complexity of transac

1. Describe the types of financial ratios and other financial performance measures that are used during a venture's successful life cycle. Who are the users of financial performan

Fund Managers or the Asset Management Company (amc) The role of fund managers is highly significant in the mutual fund operations. So far, this role is being played by the Mutu

FINANCIAL MANAGEMENT

Explain Zero coupon bonds The bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as Zero coupon bonds. At maturity t