Abstract:
Imran Bokhari, Assistant Manager Finance, Shakarganj Mills prepared a feasibility report for a board mill project. The project was to be finance by a combination of internal and external support funds. Imran's preparation involved collecting data on market evaluation, fixed costs such as civil works and vehicles, the cost of raw materials and the cost of goods sold. In addition to necessary projections and cost estimates, the case lists some assumptions on capital expenditure, depreciation, production and sales, cash requirements, taxes, salvage value, accounts receivable, inflation, and inventory on which the study was based.