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a) Ahmad and Co. Berhad is planning to build a pharmaceutical plant at Perai area in Pulau Pinang. You are working as a project engineer

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a) Ahmad and Co. Berhad is planning to build a pharmaceutical plant at Perai area in Pulau Pinang. You are working as a project engineer in the company and has been requested by your management to do the project feasibility study based on the information that is given by a consultant company. Table 2 Projection data given by the consultant company for the pharmaceutical plant project Value ($) Items Cost of land (at the end of year 0) Working capital at start-up (at the end of year 2) Fixed capital investment, assumed to be paid out at the end of year 1 Fixed capital investment, assumed to be paid out at the end of year 2 Revenue for the first 4 years operation Revenue after year 4 operation and onwards Cost of Manufacturing without depreciation (COM.) for the first 4 years COM after year 4 and onwards 3 millions 3 millions 15 millions 10 millions 10 million/y 15 million/y 4 million/y 6 million/y Assumptions: The total duration for set-up and start-up duration is 2 years Yearly income starts in year 3 The plant life ten years after start-up The plant has no salvage value The cost of land and working capital are recovered at the end of the project life )Construct a cumulative non-discounted cash flow diagram for this project 754 PLE

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