WORKING CAPITAL Working capital required for a project is the difference between current assets and current liabilities:
Working Capital = Current Assets - Liabilities To calculate current
must define the minimum requirements required by the business or company regarding current assets and current liabilities are concerned. In addition, you must know, for each of the periods of analysis of the project the total value of the following items: Current Assets
Cash on hand and in banks Accounts receivable
goods Finished goods
Parts
Current Liabilities Accounts payable
CONTENT OF SOME OF THE ITEMS OF FIXED INVESTMENT
Land: includes land value, taxes, notary fees, paid only by easement or right of way , etc.
Preparation and conditioning of the site or grounds: includes the study of soils, release of land or earth moving, drainage works, drilling of wells, access roads, railroad terminals, work in urban terrain (streets , water and sewerage, other utilities), systems for the treatment of effluents or contaminated water.
buildings, structures and civil engineering works: includes, besides the buildings of the plant or production centers, office buildings and ancillary services.
Machinery and equipment: includes basic equipment, auxiliary equipment, equipment services, including laboratory, power plant, maintenance shop, tools.
Installation of equipment: The costs for installation of machinery and equipment and transport to the plant, are part of the investment in the project. Includes: transportation costs and marine insurance, unloading and warehousing in the port, land transport and insurance, installation costs relating to salaries, energy and rental of special equipment such as cranes, welders, portable power plants , etc.
incorporated Fixed Assets: includes lump sum payments by patents and commercial goods, by grants, for special rights. The annual payment of royalties are recorded as an operating cost in the general administrative expenses item.
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