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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 |
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Solution
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
NVAMP = GVAMP - Depreciation
`=17-("Cost of producer goods"/"No of useful life in years")`
`=17 - ((15"lakhs")/5)`
=17 - 3 = Rs 14 lakh
Concept: Aggregates Related to National Income - Gross Value Added and Net Value Added
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