Consider the following information given below: ($ in millions except as noted) Investment Production (millions of...

  

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Consider the following information given below: ($ in millions except as noted) Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs Cash flow NPV (at r= 158)= -3.37 Year 0 100 0 1.35 0 Required A Required B Required C 0 0 0 -100 Net present value Right management decision Year 1 millions 0 1.35 0 0 0 35 -35 Complete this question by entering your answers in the tabs below. Year 2 55 1.35 74 45 19 35 -24.75 < Required A Year 3 Production and transport costs are variable costs while other costs are fixed. a. Calculate the NPV of the proposed polyzone project, if the spread in year 4 holds at $1.35 per pound and what's the right management decision? 110 1.35 148 45 8 35 60.50 b. Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 55 million pounds in year 1 rather than year 2 and what's the right management decision? c. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual production costs to $40 million. Competitors' production costs do not change and what's the right management decision? Year 4 Required B > 110 1.35 148 45 8 35 60.50 Year 5-10 110 1.10 121 45 Calculate the NPV of the proposed polyzone project, if the spread in year 4 holds at $1.35 per pound and what's the right management decision? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) 8 35 33.00 Complete this question by entering your answers in the tabs below. Required A Required B Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 55 million pounds in year 1 rather than year 2 and what's the right management decision? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value Right management decision Required C Required A Required B Required C millions Net present value Right management decision < Required A Complete this question by entering your answers in the tabs below. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual production costs to $40 million. Competitors' production costs do not change and what's the right management decision? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Required C > millions < Required B Required C Show less Consider the following information given below: ($ in millions except as noted) Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs Cash flow NPV (at r= 158)= -3.37 Year 0 100 0 1.35 0 Required A Required B Required C 0 0 0 -100 Net present value Right management decision Year 1 millions 0 1.35 0 0 0 35 -35 Complete this question by entering your answers in the tabs below. Year 2 55 1.35 74 45 19 35 -24.75 < Required A Year 3 Production and transport costs are variable costs while other costs are fixed. a. Calculate the NPV of the proposed polyzone project, if the spread in year 4 holds at $1.35 per pound and what's the right management decision? 110 1.35 148 45 8 35 60.50 b. Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 55 million pounds in year 1 rather than year 2 and what's the right management decision? c. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual production costs to $40 million. Competitors' production costs do not change and what's the right management decision? Year 4 Required B > 110 1.35 148 45 8 35 60.50 Year 5-10 110 1.10 121 45 Calculate the NPV of the proposed polyzone project, if the spread in year 4 holds at $1.35 per pound and what's the right management decision? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) 8 35 33.00 Complete this question by entering your answers in the tabs below. Required A Required B Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 55 million pounds in year 1 rather than year 2 and what's the right management decision? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value Right management decision Required C Required A Required B Required C millions Net present value Right management decision < Required A Complete this question by entering your answers in the tabs below. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual production costs to $40 million. Competitors' production costs do not change and what's the right management decision? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Required C > millions < Required B Required C Show less