Find net value added at factor cost :
(Rs. Lakh)
Durable use producer goods with a life span of $10$ years $10$
Single use producer goods $5$
Sales $20$
Unsold output produced during the year $2$
Taxes on production $1$

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Solution

Value of output $=$ Sales $+ Δ$ in Stock
$⟹$ Value of Output $= 20 + 2$
$⟹$ Value of Output $= R s . 22$ lakhs
Gross Value added at MP $=$ Value of Output $-$ Intermediate Consumption
Gross Value added at MP $= 22 - 5 = R s . 17$ lakhs
$N V A_{F C} = G V A_{M P} -$ Depreciation $-$ Net Indirect Tax
$⟹ N V A_{F C} = 17 - (\frac{Cost of producer goods}{No. of useful life in years}) - (Indirect Tax - Subsidy)$
$⟹ N V A_{F C} = 17 - (\frac{10 l a k h}{10}) - (1 - 0)$
$∴ N V A_{F C} = R s . 17 - 1 - 1 = 15$ lakhs
Note: Here, single use producer goods are considered as raw materials that were used in the production process.

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	(Rs. Lakh)
Durable use producer goods with a life span of $10$ years	$10$
Single use producer goods	$5$
Sales	$20$
Unsold output produced during the year	$2$
Taxes on production	$1$

Find net value added at factor cost :(Rs. Lakh)Durable use producer goods with a life span of 10 years10Single use producer goods5Sales20Unsold output produced during the year2Taxes on production1

Find net value added at factor cost :
(Rs. Lakh)
Durable use producer goods with a life span of $10$ years $10$
Single use producer goods $5$
Sales $20$
Unsold output produced during the year $2$
Taxes on production $1$