A team of Eastman Chemical Companys process engineers has proposed a minor expansion project for an existing

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A team of Eastman Chemical Company’s process engineers has proposed a minor expansion project for an existing 100 percent ownership plant located in Canada. The expansion of this mature business will utilize a licensed technology that is currently practiced widely by industry. Twenty percent of the justification is based on cost savings with the remainder attributed to revenue growth. The project is not a venture capital candidate, and 50 percent of the funds required are allocated capital. Based on the Eastman hurdle rate calculator and a base rate of 9 percent, what discount rate should be used for this project?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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