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    Capotal Budgeting Exercise for Bulawayo Project

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    I wanted to know if I am proceeding correctly with the analysis of the attached project especially with regard to the questions highlighted in yellow. I feel that I am making too many mistakes in the calculations. Please see the attached documents.

    Thank you.

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    Solution Preview

    The have done some corrections and the excel file is attached. The changes are -
    1. trucking cost - $1 is broken up into fuel 0.5 and other cost 0.5. This cost is for a truck per 10 km and for 20 ton. Therefore this is to cost for 200 ton km. To find out the cost per ton km, we have to divide 0.5 by 200.
    With this ...

    Solution Summary

    The solution contains the capital budgeting excercise for the Bulawayo Project. It shows how to put the cash flows and calculate the NPV of the project