Note : COST SAVING

S.No. Dia (mm) Weight /meter Length (mm) No.of pieces Area cut
1 80 39.5 1100 300 5024
2 90 50 1200 850 6358.5
3 100 61.7 1450 450 7850
4 110 74.7 40 150 9498.5
5 110 74.7 62 300 9498.5
6 110 74.7 75 350 9498.5
7 120 88.9 1650 650 11304
8 120 88.9 80 450 11304
9 120 88.9 105 360 11304
10 130 104.3 52 150 13266.5
11 130 104.3 68 200 13266.5
12 130 104.3 75 230 13266.5
13 130 104.3 84 120 13266.5
14 140 120.9 90 350 15386
15 140 120.9 102 320 15386
16 140 120.9 100 180 15386
17 150 138.8 120 320 17662.5
18 150 138.8 102 110 17662.5
19 150 138.8 110 80 17662.5
20 160 158 150 300 20096
21 160 158 165 550 20096
22 160 158 165 640 20096
23 170 178.3 200 640 22686.5
24 170 178.3 220 350 22686.5
25 170 178.3 280 450 22686.5
26 180 200 20 400 25434
27 180 200 260 400 25434
28 190 222.7 230 150 28338.5
29 200 246.8 250 80 31400
30 200 246.8 280 60 31400
31 220 298.6 300 120 37994
32 240 355 80 80 45216
33 260 419.1 100 100 53066
34 280 483.7 300 150 61544
35 320 631.8 240 80 80384
 Length save in Cost saved
Total area Cutting Cost In Meter (m) Total cost saved
"mm" per Kg
1507200 2,411.52 2100 2.1 82.95 1,659.00
5404725 8,647.56 5950 5.95 297.5 5,950.00
3532500 5,652.00 3150 3.15 194.355 3,887.10
1424775 2,279.64 1050 1.05 78.435 1,568.70
2849550 4,559.28 2100 2.1 156.87 3,137.40
3324475 5,319.16 2450 2.45 183.015 3,660.30
7347600 11,756.16 4550 4.55 404.495 8,089.90
5086800 8,138.88 3150 3.15 280.035 5,600.70
4069440 6,511.10 2520 2.52 224.028 4,480.56
1989975 3,183.96 1050 1.05 109.515 2,190.30
2653300 4,245.28 1400 1.4 146.02 2,920.40
3051295 4,882.07 1610 1.61 167.923 3,358.46
1591980 2,547.17 840 0.84 87.612 1,752.24
5385100 8,616.16 2450 2.45 296.205 5,924.10
4923520 7,877.63 2240 2.24 270.816 5,416.32
2769480 4,431.17 1260 1.26 152.334 3,046.68
5652000 9,043.20 2240 2.24 310.912 6,218.24
1942875 3,108.60 770 0.77 106.876 2,137.52
1413000 2,260.80 560 0.56 77.728 1,554.56
6028800 13,263.36 2100 2.1 331.8 6,636.00
11052800 24,316.16 3850 3.85 608.3 12,166.00
12861440 28,295.17 4480 4.48 707.84 14,156.80
14519360 31,942.59 4480 4.48 798.784 15,975.68
7940275 17,468.61 2450 2.45 436.835 8,736.70
10208925 22,459.64 3150 3.15 561.645 11,232.90
10173600 22,381.92 2800 2.8 560 11,200.00
10173600 22,381.92 2800 2.8 560 11,200.00
4250775 9,351.71 1050 1.05 233.835 4,676.70
2512000 5,526.40 560 0.56 138.208 2,764.16
1884000 4,144.80 420 0.42 103.656 2,073.12
4559280 10,030.42 840 0.84 250.824 5,016.48
3617280 7,958.02 560 0.56 198.8 3,976.00
5306600 11,674.52 700 0.7 293.37 5,867.40
9231600 20,309.52 1050 1.05 507.885 10,157.70
6430720 19,292.16 560 0.56 353.808 7,076.16
376,268.24 205,464.28
Summary
Saving in material cost 205,464.28
Saving in cutting cost (80% of total cost) 301,014.59
saving in transportation 60,000.00
TOTAL SAVING 566,478.87
 Note 2 : Depreciation Schedule
Year Book Value Depreciation WDV
1 1,977,500.00 494,375.00 1,483,125.00
2 1,483,125.00 370,781.25 1,112,343.75
3 1,112,343.75 278,085.94 834,257.81
4 834,257.81 208,564.45 625,693.36
5 625,693.36 156,423.34 469,270.02
6 469,270.02 117,317.50 351,952.51
7 351,952.51 87,988.13 263,964.39
8 263,964.39 65,991.10 197,973.29
9 197,973.29 49,493.32 148,479.97
10 148,479.97 37,119.99 111,359.98
The financial feasibility presented by Rahul Garg to Akash Deep is summarised below:
Cash Flow (t=0)
Price of new Machine (purchase Price + Custom Duty , 15 per cent )
Less sale proceeds of old machine
Total

Cash Inflow(t=1-10)
Year 1 Year 2 Year 3 Year 4
Total cost saving (Note1) 566,483.00 566,483.00 566,483.00 566,483.00
Depreciation (Note 2) 494,375.00 370,781.25 278,085.94 208,564.45
EBT 72,108.00 195,701.75 288,397.06 357,918.55
Tax(0.35) 25,237.80 68,495.61 100,938.97 125,271.49
EAT 46,870.20 127,206.14 187,458.09 232,647.06
CFTA(operating) 541,245.20 497,987.39 465,544.03 441,211.51
Salvage Value
CFTA(adjusted)
Computation of NPV
Year Cashflow PV(0.15) PV
0 (1,977,500.00) 0 1,977,500.00
1 541,245.20 0.86956521739 470,648.00
2 497,987.39 0.7561436673 376,550.01
3 465,544.03 0.65751623243 306,102.76
4 441,211.51 0.57175324559 252,264.11
5 422,962.12 0.4971767353 210,286.93
6 409,275.08 0.43232759591 176,940.91
7 399,009.80 0.37593703992 150,002.56
8 391,310.84 0.32690177385 127,920.21
9 385,536.61 0.28426241204 109,593.57
10 492,566.93 0.24718470612 121,755.01
Total 2,302,064.07
NPV 324,564.07
 Submitted By :
Aashish Bhandari
2,012,500.00 2k21/dmba/03
35,000.00
1,977,500.00

Year 5 Year 6 Year 7 Year 8 Year 9

566,483.00 566,483.00 566,483.00 566,483.00 566,483.00
156,423.34 117,317.50 87,988.13 65,991.10 49,493.32
410,059.66 449,165.50 478,494.87 500,491.90 516,989.68
143,520.88 157,207.93 167,473.20 175,172.17 180,946.39
266,538.78 291,957.58 311,021.67 325,319.74 336,043.29
422,962.12 409,275.08 399,009.80 391,310.84 385,536.61

Recommendation : Since NPV turns out to be positive, investment in machine is financially viable
 Year 10
566,483.00
37,119.99
529,363.01
185,277.05
344,085.96
381,205.95
111,359.98
492,565.93

ncially viable