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Q#2 (7.5 Marks) A chemical plant with a fixed capital investment of $6.4 million generates an annual gross profit of $3.276 million. Calculate the depreciation

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Q#2 (7.5 Marks) A chemical plant with a fixed capital investment of $6.4 million generates an annual gross profit of $3.276 million. Calculate the depreciation charge, taxes paid, and after-tax cash flows for the first ten years of plant operation using MACRS depreciation with a seven-year recovery period. What is the maximum 10-year NPV that can be achieved with a 15% interest rate and a 35% tax rate? Year Gross profit Depreciation Tayahla

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