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References Mailings Review View Help 2. You are the project en ineer in the construction of a new plant designed to make the miracle material

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References Mailings Review View Help 2. You are the project en ineer in the construction of a new plant designed to make the miracle material is made in the lab by combining equal parts A and B. To make c, a new facility must be constructed on a new site (note: sometime the word "greenfield is used interchangeable with "new"). Here are the costs involved for the project: Initial Capital Cost: $500,000,000 Ongoing Capital requirements: $5,000,00 per year Annual Operating costs: Material A: $ 0.05 per pound Material B: $0.07 per pound Labor: $5,000,000 per year Utilities (other cost) $4,000,000 per year Sale price for C $0.25 per pound Annual Rate of inflation: 2% for labor 1% for raw material 1% for utilities 296 price inflation for C With this information, answer the following: A Assuming the facility can produce 1 billion pounds per year of c, prepare a chart of cash flow for the facility over the first ten years of operation. Using Simple Payback does the cash flow justify the project? Graphically represent the cash flows What is NPW of the investment after years and 10? Does it justify investment in the prolect Use 5 Orerest rate

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