In the design of a chemical plant, the following costs and revenues (in the third year of production) are projected:

In the design of a chemical plant, the following costs and rev- 17.1 enues (in the third year of production) are projected: Total depreciable capital, excluding allocated $10,000,000 power Allocated power utility Working capital Annual sales Annual cost of sales excluding depreciation 2,000,000 $500,000 $ 8,000,000lyr $1,500,000lyr Assume the costs of land, royalties, and startup are zero. Determine (a) The return on investment (ROI) (b) The payback period (PBP)