Average standard hook cycle - indirect cost, Financial Management

Assignment Help:

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.

 

 


Related Discussions:- Average standard hook cycle - indirect cost

Explain the financial accounting techniques, Question 1: (a) Explain f...

Question 1: (a) Explain fully the following financial accounting techniques: i. Cash accounting ii. Accrual accounting iii. Fund accounting iv. B

State about the equity owners, State about the equity owners Flip side...

State about the equity owners Flip side of the coin is that the equity owners are also owners of all the profits which remain after all the debt holders are paid their interes

Above the line deduction, Above the line deductions are certain kinds of de...

Above the line deductions are certain kinds of deductions that are deducted from your income before the adjusted gross income is computed for tax purposes. Above the line deduct

Based on Anthony''s Orchard financial data, Question #1: Review the Anthon...

Question #1: Review the Anthony’s Orchard case study in the unit resources. Consider the following assumptions: • The company, according to Anthony’s Orchard Strategic Plan, is h

Benefit and drawback of maintaining many manufacturing sites, Discuss the b...

Discuss the benefits and drawbacks of maintaining multiple manufacturing sites like a hedge against exchange rate exposure. Answer:  To set up multiple manufacturing sites can

Exchange requirements-, Exchange Requirements To ensure money supply, s...

Exchange Requirements To ensure money supply, some central banks require some or all of its foreign exchange receipts (generally from exports) be exchanged for the local curren

Parties to mutual fund trust, Parties to Mutual Fund Trust As is common...

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

The chinese pension fund system, The Chinese Pension Fund System Mainlan...

The Chinese Pension Fund System Mainland China has a rapidly aging population. This is attributable to two main factors - the one-child policy plus substantial improvements in l

Finance: Scenario Analysis, Scenario analysis Your firm, Agrico Products, i...

Scenario analysis Your firm, Agrico Products, is considering a tractor that would have a cost of $35,000, would increase pretax operating cash flows before taking account of deprec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd