Question: 8.16 A different plant from the one described in Problem 8.13 can be built for an initial investment of $13 million and no supplemental investments.

8.16 A different plant from the one described in Problem 8.13 can be built for an initial investment of $13 million and no supplemental investments. All other data are the same as in Problems 8.13 and 8.14. (a) Compute the net present value. (b) Is this plant an economically acceptable investment? Ans. (a) +$855 708.47; (b) yes 8.17 is the investment described in Problem 8.16 still economically acceptable f the interest rate is 15% per year, compounded annually? Use the net present value method. Ans. No: NPV = -53 624 238.52

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