Lignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If the company's hurdle rate (MARR) is 20% per year, is this a profitable undertaking?

The present worth of the venture is $_____ million

6o 5o 4o 40 30 20 10 1 2 3 | 4 6 7 8 9 5 1 10 20 Discrete Compounding; i = 20% Uniform Series Single Payment Present Worth Factor To Find P Given F P/F Compound Amount Factor To Find F Given A FIA Present Worth Factor To Find P Given A PIA Capital Recovery Factor To Find A Given P A/P o o voo AWN-Z Compound Amount Factor To Find F Given P F/P 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 1.0000 2.2000 3.6400 5.3680 7.4416 9.9299 12.9159 16.4991 20.7989 25.9587 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4545 0.2747 0.1863 0.1344 0.1007 0.0774 0.0606 0.0481 0.0385 1.2000 0.6545 0.4747 0.3863 0.3344 0.3007 0.2774 0.2606 0.2481 0.2385 Uniform Gradient Gradient Gradient Uniform Present Series Worth Factor Factor To Find P To Find A Given G Given G PIG A/G 0.0000 0.0000 0.6944 0.4545 1.8519 0.8791 3.2986 1.2742 4.9061 1.6405 6.5806 1.9788 8.2551 2.2902 9.8831 2.5756 11.4335 2.8364 12.8871 3.0739