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A proposed chemical plant has the following projected revenues and operating expenses in millions of dollars 8-10 nost room)Annual operating expenses Year i), i n
A proposed chemical plant has the following projected revenues and operating expenses in millions of dollars 8-10 nost room)Annual operating expenses Year i), i n Annual revenue tem. . (excluding deprecation) 7.0 10.0 15.0 20.0 22.5 24.0 25.0 4.0 5.6 6.8 7.8 8.8 9.6 10.0 2 4 The fixed-capital investment for the plant is $50 million with a working capital of $7.5 million. Using a MACRS depreciation schedule with a class life of 5 years, determine a. The annual cash flows b. The net present worth, using a nominal discount rate of 15 percent c. The DCFR
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