engineering economics

1) A chemical processing firm is planning on adding a duplicate polyethylene plant at another location. The financial information for the first project year is shown in Table (a) Compute the working-capital requirement during the project period. (b) What is the taxable income during the project period? (c) What is the net income during the project period? (d) Compute the net cash flow from the project during the first year. Financial Information for First Project Year Sales $ 1,500,000 Manufacturing costs Direct materials 150,000 Direct labor 200,0 00 Overhead 100,0 Depreciation 200,0 150,000 400,000 200,000 100,000 20,000 Operating expenses Equipment purchase Borrowing to finance equipment Increase in inventories Decrease in accounts receivable Increase in wages payable Decrease in notes payable Income taxes Interest payment on financing 30,000 40,000 272,000 20,000