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The following information is given for a wastewater treatment facility: Total Bare Module Investment: $2,000,000 Service Facility Cost: $50,000 Land Cost: $200,000 Startup Cost: $200,000

The following information is given for a wastewater treatment facility:

Total Bare Module Investment: $2,000,000

Service Facility Cost: $50,000

Land Cost: $200,000

Startup Cost: $200,000

Working Capital: $146,875

Site Preparation Costs: 5% of Bare Module Investment

Allocation Cost: 5% of Bare Module Investment

Plant Contingency Cost: 25% of Direct Permanent Investment

Royalty Cost: 5% of Total Depreciable Capital

Plant Production Life: 5 years

Sales: $750,000/year

Cost of Production

(Excluding Depreciation): $50,000/year

Tax rate: 21%

Depreciation Method: Straight-Line with a depreciation life equal to the production life of plant

Salvage value: $0

Part A: Find the Total Depreciable Capital and Total Capital Investment

Part B: Calculate the annual depreciation and annual net profits over the 5 years of production.

Part C: Find Payback Period

Part D. Find ROI

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