Working Capital Management Case Study

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ECONOMICS ASSIGNMENT (TERM 2)
GNP, NNP OF INDIA (BOTH AT MARKET PRICE AND FACTOR COST) AND CORRESPONDING DEPRICIATION (1950-2012) GROUP 1
ANUPAMA MUKHOPADHYAY
ADRITA DAS
ATIF HOSSAIN
NAMITA VIJAY SHANKAR
T. SRIKANTH GOUD

WHAT IS GNP ?
GNP (Gross National Product) is an economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents. It is a measure of a country's economic performance, or what its citizens produced (i.e. goods and services) and whether they produced these items within its borders.

WHAT IS NNP ?
NNP (Net National Product) is the monetary value of finished goods and services produced by a country's citizens, whether overseas or resident, in the time period being measured (i.e., the gross national product, or GNP) minus the amount of GNP required to purchase new goods to maintain existing stock (i.e., depreciation). (Depreciation represents an annual amount a company recognizes as the use of an asset each year. This amount ultimately reduces the asset's historical value.) Both of these two are the measures of a country’s NATIONAL INCOME. NNP = GNP – DEPRICIATION

Now we need to introduce two issues needed to compute GNP and NNP. They are “Market price” & “ Factor cost “. The valuation of National Product at market prices indicates the total amount actually paid by the final buyers. The valuation of National Product at factor cost indicates the total amount earned by the factors of production for their contribution to the final output. National Income at Market Price =National Income at Factor Cost + (Indirect Tax - Subsidies) We have collected the data on GNP and NNP from 1950- 2012 both at market price and factor cost . 50 YEARS’ DATA OF GNP, NNP (BOTH AT FACTOR COST AND MARKET PRICE) & CALCULATION OF DEPRICIATION :

YEAR| GNP at factor cost| NNP at factor cost| DEPRICIATION| GNP at market price| NNP at market price| DEPRICIATION| 1950-51| 2786.77| 2554.05| 232.72| 2929.96| 2697.24| 232.72| 1951-52| 2855.58| 2628.04| 227.54| 3020.1| 2792.56| 227.54| 1952-53| 2937.91| 2715.41| 222.5| 3100.68| 2878.18| 222.5| 1953-54| 3117.84| 2899.31| 218.53| 3292.5| 3073.97| 218.53| 1954-55| 3248.3| 3059.85| 188.45| 3449.02| 3260.57| 188.45| 1955-56| 3335.42| 3142.38| 193.04| 3564.6| 3371.56| 193.04| 1956-57| 3524.18| 3321.92| 202.26| 3762.34| 3560.08| 202.26| 1957-58| 3479.7| 3269.92| 209.78| 3745.03| 3535.25| 209.78| 1958-59| 3742.19| 3520.54| 221.65| 4020.2| 3798.55| 221.65| 1959-60| 3818.64| 3589.13| 229.51| 4120.31| 3890.8| 229.51| 1960-61| 4087.39| 3857.61| 229.78| 4344.97| 4115.19| 229.78| 1961-62| 4209.53| 3968.44| 241.09| 4502.12| 4261.03| 241.09| 1962-63| 4295.94| 4041.19| 254.75| 4631.61| 4376.86| 254.75| 1963-64| 4514.46| 4245.27| 269.19| 4910.49| 4641.3| 269.19| 1964-65| 4851.93| 4563.27| 288.66| 5271.53| 4982.87| 288.66| 1965-66| 4671.55| 4366.5| 305.05| 5129.85| 4824.8| 305.05| 1966-67| 4720.24| 4393.45| 326.79| 5127.81| 4801.02| 326.79| 1967-68| 5099.65| 4750.52| 349.13| 5524.29| 5175.16| 349.13| 1968-69| 5235.58| 4867.75| 367.83| 5714.6| 5346.77| 367.83| 1969-70| 5576.52| 5184.34| 392.18| 6088.09| 5695.91| 392.18| 1970-71| 5856.72| 5418.67| 438.05| 6402.75| 5964.7| 438.05| 1971-72| 5917.03| 5459.76| 457.27| 6509.38| 6052.11| 457.27| 1972-73| 5901.38| 5426.86| 474.52| 6476.47| 6001.95| 474.52| 1973-74| 6174.98| 5679.37| 495.61| 6694.44| 6198.83| 495.61| 1974-75| 6254.37| 5727.41| 526.96| 6781.51| 6254.55| 526.96| 1975-76| 6823.55| 6267.79| 555.76| 7408.06| 6852.3| 555.76| 1976-77| 6910.96| 6318.97| 591.99| 7533.48| 6941.49| 591.99| 1977-78| 7432.23| 6814.42| 617.81|...
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