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
Advantage and Disadvantages of Zero Based Budgeting Advantages 1. Resources allocation is more efficient. 2. Focus attention on values for money and makes clear relat

Dixon Corporation was established on January 1, Year 1.  The firm has 2 divisions, Division A and Division B.  Division A manufactures standard carpets, and Division B manufactures

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

what is the classification of cost & how it is done?

Given the below information, what are the values for COGS and ending inventory for each costing method below?   Number of Units Price per Unit

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

Download the financials of Shoprite , study them, then, using ratio analysis, the cash flow statement, and the segmental breakdown of the results, prepare a statement outlining the

Under the average cost method the average cost of goods held in stock is recalculated after each receipt. An issue after the receipts is made at the recalculated average prices. A

Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling an

a.         What are the major equity and/or debt securities investments? What amounts are reported in the balance sheet? How significant are those amounts to the company's overall