3. A proposed chemical plant has the following projected costs and revenues in millions of dollars : Year Fixed Cap. Working Cap. Total Prodn. Cost Revenue Salvage Value 24.0 4.0 (2002) 2000-02 2003 2004 2005-10 5.0 7.0 10.0 10.0 15.0 22.0 4.0 Use a straight line depreciation schedule with a tax life of 5 years, tax rate of 40 % and initial investment spread equally over time t= -2 year to t = 0 year. Assume start-up costs nil. Interest rate, i = 15%. (i) What is the present value of total cash flow? What is the NPV for the project ? (iii) is the investor's rate of return (IRR) less than or greater than 15 % ? Explain. [8]