A proposed chemical plant has the following projected costs and revenues in millions of dollars: Using an
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A proposed chemical plant has the following projected costs and revenues in millions of dollars:
Using an MACRS depreciation schedule having a class life of \(5 \mathrm{yr}\),
(a) Compute the cash flows.
(b) At an effective interest rate of \(20 \%\), determine the net present value.
(c) Is the investor's rate of return less than or greater than \(20 \%\) ? Explain
(d) Compute the investor's rate of return.
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ISBN: 9781119355243
4th Edition
Authors: Warren D. Seider, Daniel R. Lewin, J. D. Seader, Soemantri Widagdo, Rafiqul Gani, Ka Ming Ng
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