Livestock Economics, Marketing and Business Management

Problem for undiscounted measures and discounted measures

PROBLEM

Undiscounted measures

• Total investment / outlay is Rs.50,000/, average net benefits per year is Rs. 12,500/, life span of the project is 7 years. Find out, pay back period, proceeds per rupee of outlay and Average annual proceeds of rupee outlay.
• In a project, the cash outlay is Rs.20000/ and the average annual returns are Rs.8000, 7000, 4000 and 3000 in 4 years.  Calculate pay back period, proceeds per rupee of outlay and Average annual proceeds of rupee outlay.

Discounted measures

• Find out NPW and BCR for the following project. Discount rate is 12% and life span is 5 years.

Year	1	2	3	4	5
Cash outflows	38900	9239	10575	11952	12858
Cash inflows	-	28475	32550	35610	39802

• Work out the NPW and BCR for the following data of an agricultural project. Discount rate is 12%.

Year	1	2	3	4	5	6	7
Cash outflows	25000	4250	4792	5368	5975	6456	7187
Cash inflows	-	10260	12550	14530	16275	19396	21470