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please show all steps/work! Working Capital - negative cash flow in your 0 (atart-up year), positive cash flow at end of peoject (year ai), not
please show all steps/work!
Working Capital - negative cash flow in your 0 (atart-up year), positive cash flow at end of peoject (year ai), not included in tax calculations, not deqereciable, IS included is cash flow Depreciable life is always less than or equal to the project life IRR - use the IRR function in Excel and your computed cash flows Do sot use the NPV function in Excel. It assumes the Ist year cash flow is at the end of year I while we are considering cash flow to start at year zero (beginning of year 1). You neod to do the net present value mantally using a calculated "discount factor", 1. In the design of a chemical plant, the following expenditures and revenaes are estimated after the plant bas achieved its desired production mate. Use a 10 year project life (after start-up), straight line depecciation over 10 years, and a 21% Federal income tax rate. Note: depreciate the Fixed Capitsl Investment a) What is the Total Capital Investment? a) Report approximate payback period based on i=0 cumulative cash flow. b) Calculate IRR c) Calculate the NPV at the IRR rate. d) Compare IRR and ROI. e) How much depteciatioa is avalable in year 10 ? 0 What is the book value at the end of year 5 ? 2. Calculate the discounted cash flow rate of retum (DCFR) (or IRR) and the net present value (t0) at a 10% iniefest fate for each of the four cash flows (pareatheses around values indicate nceative amounts). Use Excel De. 1 Step by Step Solution
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