Question: Please help with PART B. Question based on economic evaluation in Analysis, synthesis and design of chemical processes, Will upvote if helpful. Please help with

Please help with PART B. Question based on economic evaluation in "Analysis, synthesis and design of chemical processes", Will upvote if helpful. Please help with steps, preferably on excel showing values and equations.

Please help with PART B. Question based on economic evaluation in "Analysis,

The projected cost of a new plant that produces methanol from natural gas at 102 metric tons (MT) per hour is given below.

Land Cost = $80 million Total Capital Investment $4 billion Fixed Capital Investment without Land = 60% in year 1, 25% in year 2, and 15% in year 3 (it can be assumed that the costs are evenly distributed throughout the year, but only discounted at the end) Working capital = 15 % of FCI Start-up at end of year 3 Product market value $6102/ MT

Cost of Manufacturing (without depreciation) = $3.7 billion Tax Rate = 28% Depreciation method = double declining balance method over 6 years with zero salvage value Length of time over which profitability are to be assessed = 10 years after start-up Internal rate of return = 10% p.a. Stream factor = 0.913

(a) Draw a cumulative (discounted) after tax cash flow diagram. (b) Calculate the following discounted profitability criteria for the project: (i) Net present value and net present value ratio (ii) Discounted payback period (iii) Discounted cash flow rate of return (DCFROR)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!