rate of interest on term loan to finance the above capital expenditure 12 559095

Calculate the MHR.

  1. Cost of the machine: Rs 24 lakh
  2. Custom duty, insurance, freight etc. Rs 11 lakhs.
  3. Installation expenses: Rs 3 lakh
  4. Cost of tools adequate for 2 years only: Rs 4 lakh
  5. Cost of machine room: Rs 3 lakh
  6. Cost of air conditioning for machine room: Rs 2 lakh
  7. Rate of interest on term loan to finance the above capital expenditure: 12%
  8. Salaries etc. for operators and supervisory staff: Rs 2 lakh per year
  9. Cost of electricity: Rs 11 per hour
  10. Consumption of stores: Rs 5,000 per month
  11. Other expenses: Rs 5 lakh per annum
  12. Assumed rate of depreciation at 10% per annum on fixed assets
  13. Total working hours in the machine room: 200 hours per month.
  14. Loading and unloading time: 10% of machine time
  15. You can make suitable assumptions, if necessary, for the purpose of your computation

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