510-515 3. The total capital investment for a hydrometallurgical plant of zinc production is Rs. 10 Cr and the plant produces 4,000 tons of products annually. The selling price of zinc product is Rs. 0.33 Lakhs/ton. The working capital amounts to 16% of total capital investment (TCI). For the investment, which is made by company funds, no interest is charged. Raw material (zinc concentrate) costs for the zinc product are Rs. 0.036 Lakhs/ton, labor Rs. 0.032 Lakhs/ton, utilities Rs. 0.02 Lakhs/ton and packaging Rs. 0.0032 Lakhs/ton. Distribution costs are 4% of the total production costs (TPC). Estimate the following: A. Manufacture cost per ton of product. B. Total production cost per year C. Profit per ton of product after taxes. D. % ROI E. Payout time

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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510-515
3. The total capital investment for a hydrometallurgical plant of zinc production is Rs. 10 Cr
and the plant produces 4,000 tons of products annually. The selling price of zinc product is
Rs. 0.33 Lakhs/ton. The working capital amounts to 16 % of total capital investment (TCI).
For the investment, which is made by company funds, no interest is charged. Raw material
(zinc concentrate) costs for the zinc product are Rs. 0.036 Lakhs/ton, labor Rs. 0.032
Lakhs/ton, utilities Rs. 0.02 Lakhs/ton and packaging Rs. 0.0032 Lakhs/ton. Distribution
costs are 4% of the total production costs (TPC). Estimate the following:
A. Manufacture cost per ton of product.
B. Total production cost per year
C. Profit per ton of product after taxes.
D. % ROI
E. Payout time
516-524
Transcribed Image Text:510-515 3. The total capital investment for a hydrometallurgical plant of zinc production is Rs. 10 Cr and the plant produces 4,000 tons of products annually. The selling price of zinc product is Rs. 0.33 Lakhs/ton. The working capital amounts to 16 % of total capital investment (TCI). For the investment, which is made by company funds, no interest is charged. Raw material (zinc concentrate) costs for the zinc product are Rs. 0.036 Lakhs/ton, labor Rs. 0.032 Lakhs/ton, utilities Rs. 0.02 Lakhs/ton and packaging Rs. 0.0032 Lakhs/ton. Distribution costs are 4% of the total production costs (TPC). Estimate the following: A. Manufacture cost per ton of product. B. Total production cost per year C. Profit per ton of product after taxes. D. % ROI E. Payout time 516-524
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