Determine the net present value of proposed project, Cost Accounting

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will create economic profits of $5000/year to the company (which hires substantial numbers of local villagers) after one year of construction but will cost $10,000 (paid upfront) to build.  In addition, the loss of the mangrove habitat will reduce spawning and nursery habitat for valuable fish species - thus reducing the catch of fish by artisanal fishermen from 1000 tons to 750 tons per year (which has a market value, after costs, of $10/ton).  Assume that these losses are experienced from the very first (construction) year onward and are permanent.  

1. What is the net present value of this proposed project?

Posted Date: 3/23/2013 5:42:36 AM | Location : United States







Related Discussions:- Determine the net present value of proposed project, Assignment Help, Ask Question on Determine the net present value of proposed project, Get Answer, Expert's Help, Determine the net present value of proposed project Discussions

Write discussion on Determine the net present value of proposed project
Your posts are moderated
Related Questions
Using the  information provided prepare  the four financial  statements  for inclusion in Plantagenet Ltd's Annual Report dated at its balance date of 30th June 2011. The statement

Current assets 180.00   232.00 Less: Current Liabilities 80.00   105.00 Working Capital

Asian Ltd makes three types of gold watch - the Diva (D), the Classic (C) and the Poser (P). A traditional product costing system is used at present; although an activity based cos

Q. What are the advantages and disadvantages of free float? Advantages: It is one of the most suitable ER regimes for transitional countries that experience external shocks l

Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri

MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which

What is the easiest of calculate equivalents before producing a process account 2

Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is:                                           Thousands of

I have a project due this week and I am having slight issues with the transactions. I cannot seem to receive the correct titles under the recordings

Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs