Problem A

In the construction project of a manufacturing plant for a period of 10 years, the following data is projected US$, considering the sale of land, building and equipment at the end of the 10 year period:

Land	Building	Team	Additional working capital	VM10 Land	VM10 Building	VM10 Team	Annual Sales	Annual expenses	Trema Before annual tax
$400000	$800000	$360000	$1266000	$40000	$480000	$72000	$1014000	$648960	12%

Determine whether to invest in the project under consideration: 1) Pre-tax analysis with the methods: a) IRR, and b) investment recovery period (5 years) with discounted payment 2) after-tax analysis: t = 40% per year, LR depreciation method, VP method