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
Amanda Deal, president of XYZ, had recently finished an arduous round of meetings with her financial staff". Those meetings dealt with the details necessary to produce an accurate

what are importance of cost classification

Decision Making Nature of Decision-making Decision-making may fall into any type of the following categories as: 1. Short run operational decisions 2. Short run t

Evaluate the Acquisition of Manufacturing Equipment XYZ Limited is a medium sized company providing a range of medical solutions. You, the financial manager has been asked to e

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva

The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $58

In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors

You perform a travel cost study that looks at the relationship between the cost of visiting a lake (including costs of travel, value of time spent not working & any entry fees), it

Gomez incurred $350,000 of research and development costs to develop a product for which a patent was granted on January 2, 2008. Legal fees and other costs associated with the re

Period Costs Some terms are difficult to define. In one school of thought, period costs are the any costs that are not product costs. But, such a description is a stretch, beca