In reviewing current operating processes, the company accountant has provided you with the following information (below and Table 1) about a small chemical process that was built ten years ago.

Capital investment = $30 x 10⁶ ($10 x 10⁶ at end of year 1, $15 x 10⁶ at end of year 2, and $5 x 10⁶ at end of year 3)

Working capital = $10 x 10⁶

Table 1. Cash Flow Information

Year after Start-up	Yearly After-tax Cash Flow ($106/yr)
1	7.015
2	6.206
3	6.295
4	6.852
5	6.859
6	7.218
7	5.954
8	5.459
9	5.789
10	5.898

Provide a summary table of values, and the cumulative cash flow diagrams for the non-discounted and discounted cases.

Calculate the following:

Non-discounted payback period (PBP)

Rate of return on investment (ROROI)

Discounted payback period (DPBP) – use a discount rate of 7%

Net present value (NPV) – use a discount rate of 7%

Discounted cash flow rate of return (DCFROR)

Answer rating: 100% (QA)

Capital Investment 3000 Million Working Capital Investment 1000 Million Total Capital Investment 4000 Million Discount Rate 7 Year after Startup Capit... View the full answer