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Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10

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Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10 (end of year 0) Fixed Capital Investment $25 (end of year 1), S75 (end of year 2), $100 (end of year 3) Working capital S50 Sales revenue: $60 first year, S120remaining years Cost of manufacturing COM $20 first year, $30 remaining years Tax rate (t) 50% Salvage value $30 Depreciation MACRS with 5-year recovery period (see Table 9.2) Project life 8 years after start-up Discount rate Calculate and report the following intermediate values (round to nearest 0.1 millions): a Years and non-zero investments (label each investment entry), (5 pts) b. Years and depreciation amounts (should sum to FCI excluding land), (5 pts) c. Last year's and even years' cash flow from operations, (5 pts) d. Last year's and even years' total cash flow. (5 pts) e Last year's and even years' cumulative discounted cash flow (10 pts) 8% p.a. Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10 (end of year 0) Fixed Capital Investment $25 (end of year 1), S75 (end of year 2), $100 (end of year 3) Working capital S50 Sales revenue: $60 first year, S120remaining years Cost of manufacturing COM $20 first year, $30 remaining years Tax rate (t) 50% Salvage value $30 Depreciation MACRS with 5-year recovery period (see Table 9.2) Project life 8 years after start-up Discount rate Calculate and report the following intermediate values (round to nearest 0.1 millions): a Years and non-zero investments (label each investment entry), (5 pts) b. Years and depreciation amounts (should sum to FCI excluding land), (5 pts) c. Last year's and even years' cash flow from operations, (5 pts) d. Last year's and even years' total cash flow. (5 pts) e Last year's and even years' cumulative discounted cash flow (10 pts) 8% p.a

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