Roi

This query is : Resolved

Rekha Sharma (Querist)
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29 September 2011 sir please help me please check this is it right ROI

Discription Expense INR Expense Euro Remarks
Establishment Cost 2,220,000 34154
Machenery Cost 13,000,000 200000
Machinary fixation and trail run cost 0
Rent Cost 100,000 1,200,000 18462
Fixed Expenses 100,000 1,200,000 18462
Production Cost 0 0
Raw Material Cost 437,500 5,250,000 80769
0 0
Electicity cost 50,000 600,000 9231
Manpower cost 300,000 3,600,000 55385
Transpotation Cost 100,000 1,200,000 18462
Marketing Cost 100,000 1,200,000 18462
ToTal expenditure 16,407,500 14,250,000 453385

Mnufacturing cost per ton Sale per ton EBIT
RS 40,000.00 RS 60,000.00
Ist year sale (30 tons) RS 14,400,000.00 RS 21,600,000.00 RS 7,200,000.00

2nd year sale (50 tons) RS 24,000,000.00 RS 36,000,000.00 RS 12,000,000.00

3rd year sale (70 tons) RS 33,600,000.00 RS 50,400,000.00 RS 16,800,000.00

EBIT for 3 years RS 36,000,000.00

Total investment RS 87,220,000.00

ROI for 3 years 41.27493694

ROI = profits/capital Employed

profits = Sales-Manufacturing cost

Manf. Cost = Manpower+overheads+Material

Capital Employed = Fixed assets+current Assets