profile on production of workers overall and gowns - SNNPR ...

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248-14Discount cash flow 30%Accounts receivable30 daysRaw material local30 daysWork in progress2 daysFinished products30 daysCash in hand10 daysAccounts payable30 daysA. TOTAL INITIAL INVESTMENT COSTThe total investment cost of the project including working capital is estimated at Birr3.36 million, of which 36 per cent will be required in foreign currency.The majorbreakdown of the total initial investment cost is shown in Table 7.1.Table 7.1INITIAL INVESTMENT COSTSr.Total CostNo. Cost Items (‘000 Birr)1 Land lease value 1602 Building and Civil Work 2,160.003 Plant Machinery and Equipment 404.254 Office Furniture and Equipment 755 Vehicle 2006 Pre-production Expenditure* 302.237 Working Capital 63.55Total Investment cost 3,365.0Foreign Share 36* N.B Pre-production expenditure includes interest during construction (Birr 202.23thousand) training (Birr 10 thousand) and Birr 90 thousand costs of registration,licensing and formation of the company including legal fees, commissioning expenses,etc.
248-15B. PRODUCTION COSTThe annual production cost at full operation capacity is estimated at Birr 1.07 million(see Table 7.2). The material and utility cost accounts for 28.19 per cent, while repairand maintenance take 6.98 per cent of the production cost.Table 7.2ANNUAL PRODUCTION COST AT FULL CAPACITY ('000 BIRR)Items Cost %Raw Material and Inputs238.30 22.18Utilities64.57 6.01Maintenance and repair75 6.98Labour direct140.35 13.06Factory overheads58.48 5.44Administration Costs93.57 8.71Total Operating Costs670.27 62.38Depreciation215.93 20.10Cost of Finance188.22 17.52Total Production Cost1,074.42 100C. FINANCIAL EVALUATION1. ProfitabilityAccording to the projected income statement, the project will start generating profit in thefirst year of operation. Important ratios such as profit to total sales, net profit to equity(Return on equity) and net profit plus interest on total investment (return on totalinvestment) show an increasing trend during the life-time of the project.
Page 1 and 2: 248. PROFILE ON PRODUCTION OF WORKE
Page 3: 248-3I. SUMMARYThis profile
Page 6 and 7: 248-6Table 3.2PROJECTED DEMAND FOR
Page 8 and 9: 248-8The width of the cloth can be
Page 10 and 11: 248-102. Source of TechnologyAddres
Page 12 and 13: 248-12At an average land lease rate
Page 16: 248-16The income statement and the

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