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
7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha

Campground Inc. is considering the production and sale of propane lamps. Annual fixed costs associated with the project are expected to total $60,000. In addition, each lamp would

Price and Cost   information  play  no  role  in  negotiated  transfer  prices.  Do  you  agree? Describe.

list and explain all the procedures of material control

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

Over And Under Absorption of Production Overhead Costs This may be analyzed beneath a) Activity This is level of the business or cost center. Expenditure on several item

Behavioral Classification of Costs Definition Cost behavior refers to the change in costs as increase or may decrease like the output level changes that are like we risin

Assets                                               2011                                                                        2010 Non Current Assets

DEF Municipality uses a standard absorption costing system to control the cost of one of its services, namely the supply of water to its constituents. The fixed budget for the reti

Opportunity Costs Are Relevant Costs Opportunity cost introduces an additional concept that is not available like part of normal cost analysis in the accounting record system.