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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

4. A food production company plans to in a new project with $ 20,00,000 of total capital investment. It is estimated that the production rate will be 15,000,000 kg/yr and the total product cost (without depreciation) will be 580,0000,000/yr. The sale price of the product will be So/kg. The service life of the project is estimated to be 5 years, and straight-line method is used for deprecation calculations. The income tax rate is 35%, and the minimum acceptable rate of return is 20% 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 time-value-of-money calculations.
Evaluate the profitability of the project using the method of: (25 P)
a) return on investment
b) payback period
e) net present worth

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