A company borrowed

$4$

$,$

$5$

$0$

$0$

$,$

$0$

$0$

$0$

$$TL annually for

$1$

$0$

$$years with an annual capital cost of

$4$

$5$

$\%$

$$for investment. With the investment made,

$1$

$8$

$0$

$0$

$,$

$0$

$0$

$0$

$$units will be produced annually. After the production amount remains constant for the first

$1$

$0$

$$years$,$ it will decrease by

$2$

$.$

$2$

$5$

$\%$

$$annually for the second

$1$

$0$

$$years$.$ The product will be sold at a price of

$2$

$0$

$$TL

$/$

$$Piece$.$ The annual price escalation of the sales price is expected to be

$3$

$0$

$\%$

$$for the first

$1$

$0$

$$years and

$2$

$2$

$\%$

$$for the remaining years.

$1$

$$for one product kg of raw material will be used. The price of the raw material is

$2$

$.$

$2$

$$TL

$/$

kg

$.$

$$The annual escalation of the raw material price for the first

$1$

$0$

$$years is

$4$

$5$

$\%$

$$and the second

$1$

$0$

$$years is

$2$

$0$

$\%$

$.$

$$A total of

$1$

$0$

$0$

$$kW electrical power will be consumed in the production system. The company will work

$($

$5$

$,$

$7$

$0$

$0$

$)$

$$hours per year. The electricity price is

$5$

$$TL

$/$

kWh

$.$

$$It is estimated that the electricity price escalation will be

$4$

$2$

$\%$

$$annually for the first

$5$

$$years$,$

$3$

$5$

$\%$

$$for the second

$5$

$$years and

$2$

$0$

$\%$

$$for the remaining period.

$1$

$0$

$$personnel will work in the production system. The average monthly cost of one personnel is

$1$

$5$

$,$

$0$

$0$

$0$

$$TL and the annual escalation is

$3$

$5$

$\%$

$.$

$$Major maintenance costs will be incurred every

$5$

$$years$.$ The cost to be incurred in the

$5$

th year is

$5$

$,$

$0$

$0$

$0$

$,$

$0$

$0$

$0$

$$TL

$.$

$$The

$5$

$-$

year escalation of this cost is

$2$

$0$

$0$

$\%$

$.$

$$Accordingly;

a

$)$

$$Determine the annual effective value of the cost of capital and the present value of the investment cost.

b

$)$

$$Find the raw material, electricity, labor and income values in the first year.

c

$)$

$$Compound escalation of income and raw material cost that will be valid for the second ten years.

Calculate.

d

$)$

$$Create a cash flow table including investment cost, raw materials, electricity, labor, maintenance and income.

e

$)$

$$Determine whether the investment is economically viable by using the Payback Rate method