Profitability Analysis (Reference: Peters, Timmerhaus, West in Plant Design and Economics for Chemical Engineers 5^th Ed.)

A process, projected to have a total depreciable fixed capital investment of $100 million, with no allocated cost for off-site utilities, is to be installed over a 3-yr period (2018-2020). Just prior to start-up, $30 million of working capital is required. At 100% production capacity (projected for the third and subsequent operating years), sales revenues are projected to be $130 million/ yr. and the total annual production cost, excluding depreciation, is to be $ 90 million/yr. Also, the plant is subjected to operate at 50% and 75% of full annual capacity during the first and second operating years. Thus, during those years, revenues are anticipated to be 50% and 75% of the sales revenues projected in the third and subsequent years, respectively. Operating expenses in Y1 and Y2 are 75% of that in Y3. Using the straight-line method to calculate for depreciation. Perform a 10 year-period analysis and compute for the ROI and PBP.

Dear Prof., if you are going to use a spreadsheet, please provide the necessary formula and complete solution.