313 8. The projected costs for a new plant are given below (all numbers are in S1 Land cost = $7.5 Fixed capital investment $120 ($60 at end of year 1, $20.40 at end of year 3) Working capital = $35 (at start-up) Start-up at end of year 3 Revenue from sales = $52 Cost of manufacturing (without depreciation) = $18 Tax rate = 40% Depreciation method = Current MACRS over 5 years Length of time over which profitability is to be assessed $39.60 at end of year 2, and 10 years after start-up Internal rate of return = 9.5% pa. For this project, do the following a. Draw a cumulative (nondiscounted) after-tax cash flow diagram. b. From Part (a), calculate the following nondiscounted profitability criteria for the project: (i) Cumulative cash position and cumulative cash ratio (ii) Payback period (iii) Rate of return on investment c. Draw a cumulative (discounted) after-tax cash flow diagram. d. From Part (c), calculate the following discounted profitability criteria for the project: (i) Net present value and net present value ratio (i) Discounted payback period (ii) Discounted cash flow rate of return (DCFROR)