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Investment Options Analysis Report

The document evaluates three investment options for additional paper production capacity. Option 1 adds 30000 units of continuous copier capacity at a total contribution of 14.7 million. Option 2 adds 8000 tons of new addition capacity at a total contribution of 4.88 million. Option 3 modifies existing pulp and Cl2 costs, with option 3a yielding total contributions of 76.475 million and option 3b yielding 73.15 million.

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RohanMohapatra
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45 views2 pages

Investment Options Analysis Report

The document evaluates three investment options for additional paper production capacity. Option 1 adds 30000 units of continuous copier capacity at a total contribution of 14.7 million. Option 2 adds 8000 tons of new addition capacity at a total contribution of 4.88 million. Option 3 modifies existing pulp and Cl2 costs, with option 3a yielding total contributions of 76.475 million and option 3b yielding 73.15 million.

Uploaded by

RohanMohapatra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Investment 50000000

Return per
10000000
year required

Additional Capacity 30000


Offset Continous Copier
option 1 Contribution 460 260 490
Qty 0 0 30000
Total Contribution 14700000 Total Qty 30000

New Addition Capacity 8000


Option2 Contribution Per ton 610
Total Contribution 4880000

Modification Before After


Pulp 350000 332500
Cl2 cost 21000000 9975000
Savings 0 9975000
Option3.a
Contribution from
selling Pulp 70000000 66500000
Total Contribution
(Contri + Savings) 70000000 76475000

Modification Before After


Pulp 350000 350000
Cl2 cost 21000000 17850000
Savings 0 3150000
Option3.b
Contribution from
selling Pulp 70000000 70000000
Total Contribution
(Contri + Savings) 70000000 73150000
1989 1990 1991 1992 1993 1994 1995 1996
Copier 84000 92400 101640.0 111804.0 122984.4 135282.8 148811.1 163692.2
Uncoated 207000 220455 234784.6 250045.6 266298.5 283607.9 302042.5 321675.2

8400 9240 10164 11180.4 12298.44 13528.28 14881.11

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