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Capital investment in machinery for the manufacture of a new line of food products

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Cristyn Narciso
Cristyn Narciso
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I found this course very informative and easy to understand. I am just getting started in working with supply chains/manufacturing and enjoyed this free course.
Ankit Kumar
Ankit Kumar
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Very basic but yet an effective course. An easy explanation of different processes of a Supply Chain. The mentor has explained everything through pictures and flow charts which made it easy to understand. He has also provided the slides used in the course for later reference. Good for anyone who is new to the Supply Cain. I really wish him to create a more detailed and advanced course.
Laverne Angela Gadiah
Laverne Angela Gadiah
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Thank you for a very clear, easy to follow and concise course. It was informative and definitely on point.
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Client Requirements

The client requires a capital investment analysis to determine the viability of acquiring new machinery. This was done in order to help the client in making the right financial decision.

Our Methodology

Before making such analysis, the list of important variables was first considered. Things like purchase price, salvage value, recovery period, asset life, expenses, income tax rate, loans, opportunity cost and inflation rate, and other direct costs were considered. Then, the net present value (NPV) and the internal rate of return (IRR) were calculated. Then, the predicted profitability and the depreciation cost were then made.

The Outcomes

The final outcome was a capital investment analysis, which includes the capital, the NPV and IRR calculation, profitability prediction, and finally, the depreciation period.

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