Question
What additional information is need it to solve this problem? Ethylbenzene sale price = $2.0/kg; SF=0.96 Cost of manufacturing with CO2 tax and without depreciation
What additional information is need it to solve this problem?
Ethylbenzene sale price = $2.0/kg; SF=0.96
Cost of manufacturing with CO2 tax and without depreciation = $145,580,000/yr
Taxation rate = 42% Minimum acceptable rate of return = 20%
Cost of land = $1,250,000 at the beginning of the project (time = 0)
Salvage value = $1,000,000
Fixed capital investment without land = $14,920,000; 60% and 40% of FCI are spent at the end of year 1 and 2, respectively.
Working capital = $2,600,000
Start-up at the end of year 2
Project life (for economic evaluation) = 10 years after start-up
Depreciation is calculated using MACRS method for 5 years. Complete the table shown in the next page in Excel (all numbers in $MM) and plot the discounted cumulative after-tax cash flow diagram of the EB plant.
Book value After-tax Cash Flow (Non-discounted) After-tax Cash Flow (discounted) Cumulative After-tax Cash Flow (discounted) Year Investment dk Revenue COM. After-tax (net) profit Book value After-tax Cash Flow (Non-discounted) After-tax Cash Flow (discounted) Cumulative After-tax Cash Flow (discounted) Year Investment dk Revenue COM. After-tax (net) profit
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