Investing in companies - Part 4 - Food

Day 4,577, 08:45 • Published in Germany Germany • by plnet
This article is part of the "Senior Journalist" mission, so I would be very grateful if you could leave a comment!

After we have dealt extensively with the production of raw material, the area of food production follows. In the following calculations we assume the current market prices and wages.

We are again looking for a region with a high production bonus. Currently there are some that offer around 100% bonus, so we assume 100% for all levels.

In contrast to the raw material, the investment costs are significantly higher. At quality level 7 we have costs of around 830,000 CC based on the current exchange rate.



The number of workers that can be deployed is different compared to HRM / FRM / WRM. For our calculation, we assume that the maximum number of workers is always used. In addition, we collect the values for WaM separately.



Based on the current wages and raw material costs, we get the following picture for each quality level:



The cost of WaM amounts to 2 CC, which is due to the 10 EP that have to be compensated by food. With the current wage level of 2000 CC we get up to 23.600 CC in costs for level 7.



On the revenue side, however, there are only 8,200 CC to be booked on level 7 for employees.

VAT and work tax also apply:



If we now offset the revenue with the expenditure, the following picture emerges:



We see a negative result at all quality levels when we employ workers. As soon as we work as WaM we can achieve a positive result at all quality levels.

The earnings are quite acceptable for Q1 to Q3 and generate a RoI between 150 and 326 days. With the other quality levels, however, the payback period increases to up to 1834 days.