Profile for the Production of Fibre From Kenaf and Sisal - SNNPR ...

223-13VII. FINANCIAL ANALYSISThe financial analysis of the fiber from kenaf and sisal project is based on the datapresented in the previous chapters and the following assumptions:-Construction period1 yearSource of finance30 % equity70 % loanTax holidays3 yearsBank interest 8%Discount cash flow 8.5%Accounts receivable30 daysRaw material local30daysWork in progress5 daysFinished products30 daysCash in hand5 daysAccounts payable30 daysA. TOTAL INITIAL INVESTMENT COSTThe total investment cost of the project including working capital is estimated at Birr8.91 million, of which 29 per cent will be required in foreign currency.The major breakdown of the total initial investment cost is shown in Table 7.1.