A Rosaleira
The Spanish producer of canned vegetables “A Rosaleira” wants to enter the Polish market and it is going to start its production in Poznan. The investor has assumed that he will produce two types of canned vegetables: turnip greens and tomatoes. He has to buy a building – production hall of 1,000 square meters (1,800 PLN per square meter), machinery among other (PLN 500,000) and intangible assets (115,000 PLN). He has to collect in period “0” some initial inventory to start the production process (at the amount of 3,000 PLN). This information can be found in the Table 1b. The investor is going to put in 1,600,000 PLN of his own money. Another source of fixed assets and initial raw materials financing will be a long-term credit (table 1c). Other specific details concerning the project have been included in Tables 1a-c. Marketing research shows that in the first year the company will be able to sell 100 tons of turnip greens and 85 tons of tomatoes. Assumption regarding the volume of sales as changes in number of products sold during the period of five years are presented in Excel, table 1a. In the first year the price of turnip greens will be at the level of 15 PLN/Kg and 12 PLN/Kg in case of tomatoes. Price dynamics (Table 1a) is assumed to be at the level of 1.5% yearly. The cost of raw materials used to produce 1kg was calculated based on the production technology specification. In case of turnip greens, it is 10 PLN and 8 PLN for tomatoes. The cost of raw materials is correlated with dynamics of the inflation rate (see Table 1a). Depreciation is a typical fixed cost. The linear method of depreciation is used for the purpose of analysis. (Table 1 a. contains the rates of depreciation for every group of fixed assets). Labor costs will be treated as fixed costs, too. These costs consist of two items: wages and health and social insurance (20.74% of gross