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for the question above that's the answer below show how each criterion was solved for A new chemical plant is going to be built and
for the question above that's the answer below show how each criterion was solved for
A new chemical plant is going to be built and will require the following capital investment(all figures in millions of \$) Land=10FClL=150(year1=90andyear2=60)WC=30(endofyear2) R (after start-up) =75/y COMd=30/y (excluding depreciation) t=45%S=10 Depreciation = MACRS over 5 years (20;32;19.2;11.52,11.52,5.76) Project life, n=10 years after start-up Calculate each non-discounted profitability criterion After tax cash flow for the equipment at the end of the plant life, S($10 million) is added in to the revenue column in the last year. A new chemical plant is going to be built and will require the following capital investment(all figures in millions of \$) Land=10FClL=150(year1=90andyear2=60)WC=30(endofyear2) R (after start-up) =75/y COMd=30/y (excluding depreciation) t=45%S=10 Depreciation = MACRS over 5 years (20;32;19.2;11.52,11.52,5.76) Project life, n=10 years after start-up Calculate each non-discounted profitability criterion After tax cash flow for the equipment at the end of the plant life, S($10 million) is added in to the revenue column in the last yearStep by Step Solution
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