Real Madrid uses 140,000 MTPA of cement (price: $1300/m.t) and produces 90,000 MTPA of real madrid seats (price: $1,200/ton), 35,000MTPA of barcelona seats (price: 1,300/ton), 15,000MTPA of waste (currently landfill, price : $150/ton).

The variable cost of operation is dominated by raw material and energy cost. The energy requirement is 5 Gj/ton for each processed metric ton of material. Energy is purchased at $3/GJ. Fixed costs of operation (FCOP, not including depresication) are $ 20 MM/yr.

The equipment cost for the process is $65MM. The useful project life is 20 years after commissioning. Real Madrid requires a minimum rate of return of 10%/yr. Profits are taxed at 40%. Working Capital is recovered in the last year of the useful life. Working Capital Investment (WCI) is assumed to be 20% of Total Capital Investment (TCI). Assume the salvage value is zero.

Determine for this project:

a) The Net Present Value (NPV) of this project and plot it (assume straight line depreciation) and the discounted payback period

b) The Discounted Cash Flow Return on Investment (DCFROI)

Year	Costs	Revenue	Explanations
1	30% of FCI	0	Engineering and long lead items
2	45% of FCI	0	Remaining construction
3	25% of FCI +WCI +FCOP +25% of VCOP	25% of design basis revenue	Initial production
4	FCOP +70% of VCOP	70% of design basis revenue	Shake-down of plant
5	FCOP + VCOP	100% of design basis revenue	Full production at design rates