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2. In reviewing current operating processes, the company accountant has provided you with the following information (below and Table 1) about a small chemical process
2. In reviewing current operating processes, the company accountant has provided you with the following information (below and Table 1) about a small chemical process that was built ten years ago. Capital investment $30 x10 (S10 x10 at end of year 1, $15 x10" at end of year 2, and $5x10 at end of year 3) Working capital $10 x10 Table 1. Cash Flow Information Yearly After-tax Cash Flow (S10T) 7.015 6.206 Year after Start-up 6.859 7.218 5.954 5.459 5.789 10 Provide a summary table of values, and the cumulative cash flow diagrams for the non discounted and discounted cases. Calculate the following: Non-discounted payback period (PBP) Rate of returm on investment (ROROI) Discounted payback period (DPBP)-use a discount rate of 7% Net present value (NPV)-use a discount rate of 7% a. b. c. d. Discounted cash flow rate of returm (DCFROR) 2. In reviewing current operating processes, the company accountant has provided you with the following information (below and Table 1) about a small chemical process that was built ten years ago. Capital investment $30 x10 (S10 x10 at end of year 1, $15 x10" at end of year 2, and $5x10 at end of year 3) Working capital $10 x10 Table 1. Cash Flow Information Yearly After-tax Cash Flow (S10T) 7.015 6.206 Year after Start-up 6.859 7.218 5.954 5.459 5.789 10 Provide a summary table of values, and the cumulative cash flow diagrams for the non discounted and discounted cases. Calculate the following: Non-discounted payback period (PBP) Rate of returm on investment (ROROI) Discounted payback period (DPBP)-use a discount rate of 7% Net present value (NPV)-use a discount rate of 7% a. b. c. d. Discounted cash flow rate of returm (DCFROR)
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