Working-capital cost

Capital Costs The total capital cost Cfc of a project consists of the fixed-capital cost Cpc phis the working-capital cost Cn c, phis the cost of laud and other nondepreciable costs Cp ... 

An interest rate of 8% will be chosen. The fixed capital charges are assumed to have occurred a year before plant startup. The working capital costs occur during... 

A reasonable guess was attempted for working-capital costs. 

The ratio of generic to originator price serves as a proxy for production, distribution, administrative, inventory, and working capital costs. It also includes the costs of facilities and equipment used to produce the product. These costs are recognized in the generic price as an effective rental or lease payment for such facilities.4... 

As there is a direct relationship between fixed and working capital costs, method d can be expanded to get a quick estimate of total capital investment within an error of 20 to 40 per cent overestimated to 40 to 60 per cent underestimated. Table 6-7 summarizes this method. 

Fixed costs Annualized costs of capacity — generally plant and equipment. Working capital costs. Other fixed expenses... 

From the estimates for fixed capital cost and working capital cost, a schedule of total investment costs can be prepared. Then the sources and costs of financing these investments must be examined in order to prepare a flow of financial resources statement and a debt servicing statement. 

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