CAPITAL BUDGETING DECISION MAKING DATA
Cost of Project =		$180.00	m
Life of Project =		7	yrs
Use Stratight Line Depreciation to Book Value of ZERO.

This Project requires building a Mfg Plant in Ghana.
Plant will produce Bi-Cyle Parts.
In addition to Cost of Project, it is estimated that
ST Investment of $ 35m will be required, 90% of this
investment would be recoverable at the termination of
the Project.
Salvage Value of Plant at end of 7th yr =					$75.00	m

IMPACT OF THE PLANT
1	Revenue in the First year will be =				$50.00	m
2	Estimated Reve growth per yr =				10%
3	1st yr expenses =				$20.00	m
4	Estimated growth in Expenses per yr=				8%
	COMPANY POLICY
1	Use a Discount Rate of:			10%
2	The Company is in 21% Marginal Tax Bracket (MTB)
Questions:
1	First develop a Time-Line Digram and then calculate all of the
	CAPITAL BUDGETING Criteria.
2	Shoud this Project be accepted or not?
	Give your reasons based on the Capital Budgeting Criteria.

No diagram information was provided