The projected costs for a new plant are given below where are costs are in millions of dollars. For

example, land cost $$7,500,000$ for this project. Using straight line depreciation over $7$ years, determine

the following. Note that land is bought at time zero, and that the project life is for $10$ years after plant

startup.

Cumulative Cash Position $=$

million dollars

Cumulative Cash Ratio $=$

Payback Period $=$

years

Rate of return on investment $=$

$($Provide answer as a decimal fraction.$)$

Using an internal rate of return of $8\mathrm{.}0\%$ p$.$a$.,$ calculate the net present value $($NPV$).$

Net Present value $=$

million dollars