Problem 4: Find the average return on investment for the following plant A process is being constructed with a total depreciable capital of $100 million, withdrawn in equal discrete annual payments over the first three years (i.e. end of Years 1, 2 and 3). At the beginning of Year 1, land is purchased at $2 million. At the end of Year 2, a royalty payment is made for $3 Million. At the end of Year 3, $20 million of working capital and $50 million of startup costs are spent. The plant is expected to operate for 10 years at full capacity from the beginning of Year 4. Plant depreciation will also begin at the start of production in Year 4. The sales revenues are projected to be $150 million per year, and the total operating expense, excluding depreciation, is projected to be $80 million per year. Assume that the corporate income tax rate is 21 percent and the salvage value of the total depreciable capital is $10 million. Please find the average ROI using: Part A: Straight Line Depreciation Part B: Double Declining Balance