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4 . A food production company plans to in a new project with $ 2 0 , 0 0 , 0 0 0 of total
A food production company plans to in a new project with $ of total capital investment. It is estimated that the production rate will be kgyr and the total product cost without depreciation will be yr The sale price of the product will be Sokg The service life of the project is estimated to be years, and straightline method is used for deprecation calculations. The income tax rate is and the minimum acceptable rate of return is All the capital investments occur at zero time, and only the working capital recovery occurs at the end of the project life. Assume discrete cash flow and discrete compounding for timevalueofmoney calculations.
Evaluate the profitability of the project using the method of: P
a return on investment
b payback period
e net present worth
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