. A company is planning to recover palladium from spent automobile catalysts. They have a guaranteed supply of palladium containing spent catalysts for a ten year period. The company has to build a new plant for treatment of the catalyst. The following cost information is available. 

a. Capital Cost of $220 Million USD 

b. Operating Cost of $100 Million USD per year. 

c. Production of 100,000 oz. of palladium per year 

d. Palladium selling price of $2000 USD per oz. 

(a) For this proposed plant, using straight line depreciation, tax rate of 43%, one year construction period, calculate the NPV of the project at 10% interest rate (p.a.c.a.). Repeat at 30% interest rate (p.a.c.a). 

b) Repeat the calculation at a palladium selling price of $2500 per oz. 

(c) Define the relationship between IRR and NPV. 

(d) Estimate the IRR of the project from the calculation in (a) and (b).