37. The company would work for 300 days on a 2 shift basis. The installed capacity on this basis works out to 2880 TPA. The company will start production on April 1, of the year 1. The expected capacity utilization will be 50 percent in the first year, 60 percent in the second year and 70 percent for the third year and beyond.
45. Factory overhead expenses will be 50000 for the first year. They will increase at the rate of 6 percent per year subsequently. Administration expenses will be 100000 per year. Selling expenses will be 10 percent of sales.
49. The term loan will be repaid in 16 equal half yearly installments, with the first installment falling due at the end of the second operating year. The interest rate on the outstanding term loan will be 14 percent.