1) A company is seeking to invest approximately $120 millions in new projects. After research three projects are considered candidates for construction. The non-discounted information for the project is given in the table shown below, Land (millions) Working Salvage FCI After tax Capital (millions) cash flow years 1-10 Project A $10 $20 5 $70 $18 Project B $20 $10 10 $110 $20 Project C $10 $5 5 $80 $17 Assume FCI at time zero and yearly non-discounted cash flow for the assumed 10 years plant operation Calculate the important points for the three cash flows. Calculate cumulative cash, interest, and payback period for all. Determine which project should be preferred. 2) A company is seeking to invest approximately $100 millions in new projects. After research three projects are considered candidates for construction. The non-discounted information for the project is given in the table shown below, Land (millions) Working Salvage FCI After tax Capital (millions) cash flow years 1-10 Project A SS $20 5 $70 $18 Project B $10 10 $110 $20 Project C SIO SIS 5 $80 $17 Assume FCI at time zero and yearly non-discounted cash flow for the assumed 10 years plant operation. This is a discounted cash flow. Calculate the important points for the three cash flows. Calculate: NPV (cumulative cash), DPBP (payback period), and ROROI (interest rate) for each project. Determine which should be preferred. The discounted profit after 10 years is calculated using the following equation: Ten years profit = 8.88 Nominal profit . 1) A company is seeking to invest approximately $120 millions in new projects. After research three projects are considered candidates for construction. The non-discounted information for the project is given in the table shown below, Land (millions) Working Salvage FCI After tax Capital (millions) cash flow years 1-10 Project A $10 $20 5 $70 $18 Project B $20 $10 10 $110 $20 Project C $10 $5 5 $80 $17 Assume FCI at time zero and yearly non-discounted cash flow for the assumed 10 years plant operation Calculate the important points for the three cash flows. Calculate cumulative cash, interest, and payback period for all. Determine which project should be preferred. 2) A company is seeking to invest approximately $100 millions in new projects. After research three projects are considered candidates for construction. The non-discounted information for the project is given in the table shown below, Land (millions) Working Salvage FCI After tax Capital (millions) cash flow years 1-10 Project A SS $20 5 $70 $18 Project B $10 10 $110 $20 Project C SIO SIS 5 $80 $17 Assume FCI at time zero and yearly non-discounted cash flow for the assumed 10 years plant operation. This is a discounted cash flow. Calculate the important points for the three cash flows. Calculate: NPV (cumulative cash), DPBP (payback period), and ROROI (interest rate) for each project. Determine which should be preferred. The discounted profit after 10 years is calculated using the following equation: Ten years profit = 8.88 Nominal profit
