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Consider the following information given below: Production and transport costs are variable costs while other costs are fixed. a . Calculate the NPV of the

Consider the following information given below:
Production and transport costs are variable costs while other costs are fixed.
a. Calculate the NPV of the proposed polyzone project, if the spread in year 4 holds at $1.36 per pound and what's the right
management decision?
b. Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 56 million
pounds in year 1 rather than year 2 and what's the right management decision?
c. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual
production costs to $41 million. Competitors' production costs do not change and what's the right management decision?
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