Consider the following two new chemical plants, each with an initial fixed capital investment (year 0) of $15x10^6 . Their cash flows are as follows:

	Process 1	Process 2
Year	millions/ year	millions/ year
1	3	5
2	8	5
3	7	5
4	5	5
5	2	2

a. Calculate the NPV of both plants for interest rates of 6% and 18%. Which plant do you recommend? Explain your results.

b. Calculate the Discounted Cash Flow Rate of Return for Each Plant. Which plant do you recommend? Why?

c. Calculate the nondiscounted payback period (PBP) for each plant. Which plant do you recommend? Why? d. Explain any differences in your answers to Parts (a), (b) and (c).