Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3) (50 pts) For a chemical process, the following information is supplied. The interest rate is x% over 10 operating years. The tax rate is

image text in transcribed
3) (50 pts) For a chemical process, the following information is supplied. The interest rate is x% over 10 operating years. The tax rate is 20%. The salvage value is 0 . Fixed capital investment (land included) is carried out in four years. All numbers are in 1,000,000 dollars. a) Draw a nondiscounted discrete CFD. b) Form a table for discrete cash flow discounted to year 0 . c) Determine the yearly depreciation schedule using straight line depreciation method for a recovery period of 10 years and present in the same table. d) Show the cumulative discounted cash flow in the same table. What is the present value (year 0 ) of the process? e) What is the future value of the process at the end of the final year? 3) (50 pts) For a chemical process, the following information is supplied. The interest rate is x% over 10 operating years. The tax rate is 20%. The salvage value is 0 . Fixed capital investment (land included) is carried out in four years. All numbers are in 1,000,000 dollars. a) Draw a nondiscounted discrete CFD. b) Form a table for discrete cash flow discounted to year 0 . c) Determine the yearly depreciation schedule using straight line depreciation method for a recovery period of 10 years and present in the same table. d) Show the cumulative discounted cash flow in the same table. What is the present value (year 0 ) of the process? e) What is the future value of the process at the end of the final year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lattice Boltzmann Method Principles And Practice

Authors: Timm Krüger, Halim Kusumaatmaja, Alexandr Kuzmin, Orest Shardt, Goncalo Silva, Erlend Magnus Viggen

1st Edition

3319831038, 978-3319831039

More Books

Students also viewed these Chemical Engineering questions