Q.1. The cumulative discounted cash flow diagram for a process is shown in Figure 1; all numbers are given in $ million and have been discounted to time t=0. The project life is ten years after startup and the construction period is two years. The hurdle rate is 5% p.a. and the tax rate is 40% p.a. The 5 -year MACRS (with a 1/2 year convention) was used for the depreciation calculations. For this project, answer the following questions. The answers for parts (a-d) should be given in terms of the cost or value at the time of purchase, that is, not the discounted value: What was the cost of land? What was the fixed capital investment excluding land, FCl ? What was the cost for working capital (WC)? What was the value for (R-COM )? What is the discounted payback period (DPBP)? What is the net present value of the project (NPV)? Q.2. A pressure vessel needs to be purchased by evaluating three different options. The after-tax, internal hurdle rate is 10%. Which of the following three alternatives do you recommend and why? Figure 1 Cash Flow Diagram for Problem 1