Answer to Question #232364 in Finance for shreni

Question #232364
As for Ranchi, it has a population of 45L as per the last census taken in 2010. The year is 2020, and the company is looking to open a new footwear production factory. In Ranchi, Foot&Bros and Slipper&Sons are the current market leaders. Foot&Bros have been in business for 40+ years and have a 60% market share. In Ranchi, Slipper&Sons hold a 40% market share. Excess Industries expects to capture 25% of the former and 40% of the latter.
Factory lease (99 years) 99 Cr. Rent 1.5 L/month Electricity 10 units/footwear produced Electricity rate is 15 rupees per unit in Ranchi.
We will be sourcing our raw materials from two locations - nearby Kolkata (50%) and Patna (50%) . We understand that each shoe requires 10m of leather for manufacturing reasons.Wastage will be 10m per shoe.
Profit margin 20% - Analyze and estimate the profitability, revenues and costs of Excess industries from the beginning of 2021 until 2021 (first four years of business).
Expert's answer





Benefit paid after 25 years


Present value of retirement benefits


Additional saving"=940167.22-582700=357467"

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