3. A proposal to manufacture 5000 t/yr. of a halogenated organic intermediate is set out below Estimated total capital cost Construction time Working capital Operating cost (exc. depreciation) Revenue from sales Plant life Salvage value Land value Income tax rate Depreciation Method S2,500,000 2 years 20% of FCI $80 per ton of product 400 dollars per ton of product 10 years $200,000 S500,000 25 % MACRS Operating cost at reduce capacity is expressed as follows: 0.5 OC S80* (Capacity 5000) Time Market forecast (t/yr) 1500 1600 1700 1900 2500 3400 4700 5100 5300 4700 4000 2000 0 10 12 on Assuming that the intermediate is storable for a maximum of one year, would you recommend proceeding with the proposal? Justify your answer. Analyze the cash flow position. The dollar values are based on year 2 dollar which is the first year of