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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.

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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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