2. A design study has just been completed for a chemical plant. The economic parameters relevant to the project include the following items: Production at 100% capacity = 2x10 kg/yr Total capital investment = $30 million Fixed capital investment = $28 million Sum of the fixed cost (except for depreciation) = $1 million/yr Sum of variable product costs at full capacity = $5 million/yr Evaluation policies: Use 5 yr straight line depreciation with yr convention Neglect working capital and salvage value recovery. Use 35% tax rate per year. Use 10 yr evaluation period; base the calculations on 60% of rated output the first year, 85% the 2nd year, 100% each year thereafter. Assume that all capital investment occurs at zero time. Minimum acceptable return 30%/yr (mar). a) Calculate the product sales price that is required to achieve the mar, obtained by Return on Investment and Payback period. (16)