PROFILE ON PRODUCTION OF FISHING NET AND SPORTS NET

84-13VII. FINANCIAL ANALYSISThe financial analysis of the fishing and sport nets project is based on the data presentedin the previous chapters and the following assumptions:-Construction period1 yearSource of finance30 % equity70 % loanTax holidays5 yearsBank interest 8.5 %Discount cash flow 8.5 %Accounts receivable30 daysRaw material local30 daysRaw material, import90 daysWork in progress2 daysFinished products30 daysCash in hand5 daysAccounts payable30 daysA. TOTAL INITIAL INVESTMENT COSTThe total investment cost of the project including working capital is estimated at Birr10.32 million, of which 56 per cent will be required in foreign currency.The major breakdown of the total initial investment cost is shown in Table 7.1.