UR-new, which is even more efficient than the previous catalyst, UR. By using the UR-new,the added value in the production is set to be 60 USD per barrel.

The basis of the following calculations is a refinery that processes 30,000 barrels of oil a day and produces 365 days a year. For a refinery of this size, 110 tons of catalyst must be used. After 2.5 years,the catalyst must be replaced. Before UOP can attempt to sell the UR-new to refiners, they must first establish a selling price.

 

The development of UR-new has taken 3 years and the development cost is calculated to be 3.5 million USD per year.

The price of UR-new has now been established, and on that basis, sales of UR- new in the next 5 years will be: Year 1: 400 tons, Year 2: 700 tons, Year 3: 2,400 tons, Year 4: 3,800 tons and Year 5: 4,200 tons.

 For the next 5 years, the marketing costs for UR-new are planned to be 200,000 USD per year.

Assume that the gross margin on UR -new at the established selling price is 30,000 USD per ton.

Further, assume that UOP uses an interest rate of 20% per annum.

 Calculate the future value of the project. 

Which of the following formulas in cell C8, when copied to cels C9 through C12, would yield the correct amount of double-declining-balance depreciation? A B 2 Cost 3 Salvage 4 Life (in years) $440,000 $40,000 5. January 1 book Depreciation Expense Accumulated December 31 value Depreciation book value 7 Year 8 $440,000 $176,000 $176,000 $264,000 $264,000 $105,600 $281,600 $158,400 10 $158,400 $63,360 $344,960 $95,040 11 $95,040 $38,016 $382,976 $57,024 $57,024 $17,024 $400,000 $40,000 12 Multiple Choice DBISIS2.SB$3,$054 AB) ( Prev 4 of 7 Next> 123 S264,000 $105,600 $281,600 $344,960 $158,400 $95,040 10 3 $158,400 $63,360 11 4. $95,040 $38,016 $382,976 $57,024 12 5. $57,024 $17,024 $400,000 $40,000 Multiple Choice -DESOS2,58$3.58$4 AH) =DDB($BS2,S0S3.58$4,A8) ODB$8$2.SBS3,5054.SAS8) -DDBIS8$2.$8$3,5054A$8)