Find Net Value added at Market Price Fixed Capital good with a life span of 5 years ₹ 15

Anurag Pathak28.60K November 11, 2023 0 Comments

Find Net Value added at Market Price:

Particulars	₹ in Lakhs
(i) Fixed Capital good with a life span of 5 years	15
(ii) Raw materials	6
(iii) Sales	25
(iv) Net Change in Stock	(-) 2
(v) Taxes on production	1

Ans – ₹ 14 lakhs

Solution:-

Value of Output = Sales + Net Change in Stock

Value of Output = ₹ 25 + ₹ (-) 2

Value of Output = ₹ 23 Lakhs

Gross Value Added at Market Price (GDP at MP) = Value of Output – Intermediate Consumption (Raw materials)

Gross Value Added at Market Price (GDP at MP) = ₹ 23 – ₹ 6

Gross Value Added at Market Price (GDP at MP) = ₹ 17 lakhs

Net Value Added at Market Price (NDP at MP) = Gross Value Added at Market Price – Depreciation

Net Value Added at Market Price (NDP at MP) = ₹ 17 – 15/5

Net Value Added at Market Price (NDP at MP) = ₹ 14 lakhs

Note:-

Depreciation = Value of Fixed Capital Good/Life Span

Depreciation = ₹ 15/₹ 5 = ₹ 3 lakhs