Question: The subject is Project management Consider Cement Project with the following information, UThe initial investment outlay on the project is birr 100 million which is

 The subject is Project management Consider Cement Project with the following

The subject is Project management Consider Cement Project with the following information, UThe initial investment outlay on the project is birr 100 million which is consists of 80 million plant and machinery and the remaining 20million is on working capital UThe entire outlay will be made at the beginning of the project UThe project will be financed with 50 million of equity capital and the reaming 50 million of debt financing O The life of the project is expected to be 5 years 0 At the end of the fetch a net salvage value of birr 30 million where as working capital liquidated at its book value D The project is expected to increase the revenue of the firm by 120 m per year D The increase in cost on account of the project is expected to be 80 m per year (this includes all costs items other than depreciation and tax). 5th years a fixed asset will O Plant and machinery will be depreciated at the rate of 25% per year as dFirst year DSecond year UThird year DFourth birr DFifth year 20m 15m 11.25m 8.44m 6.33m If the effective tax percent will be 30% and interest rate is 10% , given the above information calculate the yearly cash flow of the project shown below

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