Essay About P15.00 And P40.00

An Investment Analysis of Flat Bed Dryer
Celine Joy A. Dela Peña                                                                        Sept. 20, 20162011-45376                                                                                Sept. 27, 2016Exercise no. 6An Investment Analysis of Flat Bed DryerSample computations:                                                     Electricity: P15.00 x 3 kW x 16 hours x 90 days                  = 64,800Kerosene: P40.00 x 2 Li x 16 hours x 90 days                       = 115,200Rent: P100 x 100 square meters                                         = 10,000Labor: 2 laborers x P500.00 x 90 days                                =  90,000Repair & maintenance: P180,000.00 x 2%                        =  3,600Interest: P180,000.00 x 8%                                                   = 14,400Total Variable Cost                                        = P 298,000.00        Total weight of grains per year:[pic 1]Find the cost of drying per kg of wet grains using 20% mark-up.Cost of drying/kg grain [pic 2]P 0.8778Benefits = BEP X 1.2 = P 1.0534 x 360,000 kg = P 379,224.00 /yearMake an investment analysis using NPV and BCR. Is it worth investing in a dryer? Justify your answer.Total Discounted Benefits                =         2,308,347.59Less (Total Discounted Cost)       _                = _        1,941,484.00NPV (Net Present Value)                  =         366,863.59Benefit-Cost Ratio [pic 3]        Yes, it is worth investing because the NPV has a positive value, while the BCR has a value greater than 1, which means that the benefits out weighted the costs.