Breakeve cash wows and risk wases and Chemis f y punto conductor manufacturers A pproach 5383 The second torustnant which will cost to build the Board to reduce the c that wil l proper your head to the custodi a co n and wance of succes the proc e s NPV The cost 14 * Find the NPV reach the compta toan to build a wastonci dostoni secondo o rnemergency condu c ting B e st product analyse odmantas em bude of o that each c. The te a ted the probabs of ch d. Which one who has the The methods NPVw the table pech welche chows for the two show NPV D e utro Whaw a The No u nd the Data Table Range of how m Probability of achieving casino in given range a ndard Plant Breakeven cash inflows and risk Boardman Gases and Chemicals is a supplier of highly punified gases to semiconductor manufacturers. A large chip producer has asked Boardman to build a new gas production facility close to an existing semiconductor plant. Once the new gas plant is in place, Boardman will be the exclusive supplier for that semiconductor fabrication plant for the subsequent 10 years. Boardman is considering one of two plant designs. The first is Boardman's "standard" plant which will cost $38 3 million to build. The second is for a custom plant which will cost $53 8 million to build. The custom plant will allow Boardman to produce the highly specialized gases required for an emergency semiconductor manufacturing process Boardman estimates that its client will order $12 9 million of product per year if the standard plant is constructed, but if the custom design is put in place, Boardman expects to sell $16.9 million worth of product annually to its client Boardman has enough money to build either type of plant, and in the absence of risk differences, accepts the project with the highest NPV The cost of capital is 17.4% What is the probability that a. Find the NPV for each project Are the projects acceptable? b. Find the breakoven cash inflow for each project e. The firm has estimated the probabilities of achieving various rangos of cash inflows for the two projects, as shown in the table each project will achieve the breakeven cash inflow found in part (b)? Which mar mhich runthathundhi D h e the a. The NPV for project standard is (Round to the nearest cent) Breakeve cash wows and risk wases and Chemis f y punto conductor manufacturers A pproach 5383 The second torustnant which will cost to build the Board to reduce the c that wil l proper your head to the custodi a co n and wance of succes the proc e s NPV The cost 14 * Find the NPV reach the compta toan to build a wastonci dostoni secondo o rnemergency condu c ting B e st product analyse odmantas em bude of o that each c. The te a ted the probabs of ch d. Which one who has the The methods NPVw the table pech welche chows for the two show NPV D e utro Whaw a The No u nd the Data Table Range of how m Probability of achieving casino in given range a ndard Plant Breakeven cash inflows and risk Boardman Gases and Chemicals is a supplier of highly punified gases to semiconductor manufacturers. A large chip producer has asked Boardman to build a new gas production facility close to an existing semiconductor plant. Once the new gas plant is in place, Boardman will be the exclusive supplier for that semiconductor fabrication plant for the subsequent 10 years. Boardman is considering one of two plant designs. The first is Boardman's "standard" plant which will cost $38 3 million to build. The second is for a custom plant which will cost $53 8 million to build. The custom plant will allow Boardman to produce the highly specialized gases required for an emergency semiconductor manufacturing process Boardman estimates that its client will order $12 9 million of product per year if the standard plant is constructed, but if the custom design is put in place, Boardman expects to sell $16.9 million worth of product annually to its client Boardman has enough money to build either type of plant, and in the absence of risk differences, accepts the project with the highest NPV The cost of capital is 17.4% What is the probability that a. Find the NPV for each project Are the projects acceptable? b. Find the breakoven cash inflow for each project e. The firm has estimated the probabilities of achieving various rangos of cash inflows for the two projects, as shown in the table each project will achieve the breakeven cash inflow found in part (b)? Which mar mhich runthathundhi D h e the a. The NPV for project standard is (Round to the nearest cent)
