Economics cash flow tables and diagram

Identify Project Cash Flow for the following project. Also summarize the cash flow table, and provide cash flow diagram. Your comments on project will also carry some marks. XL Chemicals is thinking of installing a computer process control system in one of its process plants. The plant is used about 45% of the time, or 22, 00 operating hours per half year, to produce a proprietary demulsification chemical. During the remaining 55% of the time, it is used to produce other specialty chemicals. Annual production of the demulsification chemical amounts to 27,500 kilograms, and it sells for $8 per half kilogram. The proposed computer process control system will cost $598,000 and is expected to provide the following specific benefits in the production of the demulsification chemical: First, the selling price of the product could be increased by $2.5 per kilogram because the product will be of higher purity, which translates into better demulsification. Second, production volumes w ill increase by 35,00 kilograms per year as a result of higher reaction yields, without any increase in the quantities of raw material or in production time. Finally, the number of process operators can be reduced by one per shift, which represents a sav ings of $23 per hour. The new' control system would result in additional maintenance costs of $27,000 per half year and has an expected useful life of nine years. Although the system is likely to provide similar benefits in the production of the other specialty chemicals manufactured in the process plant, these benefits have not yet been quantified. Identify Project Cash Flow for the following project. Also summarize the cash flow table, and provide cash flow diagram. Your comments on project will also carry some marks. XL Chemicals is thinking of installing a computer process control system in one of its process plants. The plant is used about 45% of the time, or 22, 00 operating hours per half year, to produce a proprietary demulsification chemical. During the remaining 55% of the time, it is used to produce other specialty chemicals. Annual production of the demulsification chemical amounts to 27,500 kilograms, and it sells for $8 per half kilogram. The proposed computer process control system will cost $598,000 and is expected to provide the following specific benefits in the production of the demulsification chemical: First, the selling price of the product could be increased by $2.5 per kilogram because the product will be of higher purity, which translates into better demulsification. Second, production volumes w ill increase by 35,00 kilograms per year as a result of higher reaction yields, without any increase in the quantities of raw material or in production time. Finally, the number of process operators can be reduced by one per shift, which represents a sav ings of $23 per hour. The new' control system would result in additional maintenance costs of $27,000 per half year and has an expected useful life of nine years. Although the system is likely to provide similar benefits in the production of the other specialty chemicals manufactured in the process plant, these benefits have not yet been quantified