[Topic 6] Financial Aspect

Question 1

Composition of Financial analysis

Answer 1

1. Historical and projected supply
2. Historical and projected demand
3. Demand-supply gap analysis
4. Product price study
5. Production costs (investment, salaries/wages, MOOE)
6. Benefits
7. Loan or debt service
8. Cash flows

Question 1

Information/data that must be available before proceeding to calculations in financial aspect.

Answer 1

1. Project time-table
2. Sales Volume
3. Plant capacity
4. Income tax rates
5. Tariff rates
6. Foreign exchange rate
7. General price levels