The yearly cash flows estimated for a project involving the construction and operation of a chemical plant

Question:

The yearly cash flows estimated for a project involving the construction and operation of a chemical plant producing a new product are provided in the discrete CFD in Figure E9.12a. Using this information, construct a cumulative CFD. 012 $50 75 30 40 3 4 5 6 7 8 9 10 11 12 Units: $104 Year 90 Figure E9.12a Discrete CFD for Chemical Plant

The numbers shown in Table E9.12 were obtained from this diagram. Year O 1 2 3 4 LO 5 6 7 8 9 Table E9.12 Summary of Discrete and Cumulative Cash Flows in Example 9.12 Cash