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Naomba msada kwa waliosoma finance and acounting au kwa anaesoma/kwa anayejua

Discussion in 'Jukwaa la Elimu (Education Forum)' started by saliel, Jun 6, 2012.

  1. saliel

    saliel Member

    Jun 6, 2012
    Joined: Apr 11, 2011
    Messages: 82
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    Amplify plc is considering a project which would require an outlay of 2.4m Tshs, at the outset. The money cash flows receivable from sales will depend on the specific inflation rate for Amplify’s product. This is anticipated to be 6% per annum. Cash outflow consists of three elements: labour, material and overheads. Labour costs are expected to increase at 9% per year, materials by 12% and overheads by 8%. The discount rate of 12.34% that Amplify uses is a money discount rate, including an allowance for inflation. One of the key rules of project appraisal is now followed: if the discount rate is stated in money terms, then consistency requires that cash flows be estimated in money terms.>naomba anayeelewa anielekeze namna ya kupata sales,material cost,labour, overheads, cash flow before allowing for price rises?