Question

Find net value added at market price:

		(Rs lakh)
(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

Answer 1

Value of output = Sales +Change in stock

= 25 - 2

= Rs 23 lakh

Gross value added at MP = Value of output - Intermediate consumption

Gross value added at MP = 23 - 6 = Rs 17 lakh

NVA_MP = GVA_MP - Depreciation

`=17-("Cost of producer goods"/"No of useful life in years")`

`=17 - ((15"lakhs")/5)`

=17 - 3 = Rs 14 lakh