Question: PLEASE SOLVE WITH CLEAR WRITING AND MAKE SURE THAT SOLUTION IS CORRECT. Q3) It is desired to construct an ammonia petrochemical plant with a capacity

PLEASE SOLVE WITH CLEAR WRITING AND MAKE SURE THAT SOLUTION IS CORRECT.
PLEASE SOLVE WITH CLEAR WRITING AND MAKE SURE THAT SOLUTION IS CORRECT.

Q3) It is desired to construct an ammonia petrochemical plant with a capacity of 300,000mt/ year. Cost analysis has the following information: - Purchased equipment cost $20 millions ( 25% of fixed capital investment) - The variable production cost is $15 millions at full capacity - Income tax rate is 40% - Depreciation is 15% of fixed capital investment - Working capital cost is 15% of total capital investment - Selling price $150/mt a) Fixed capital investment at 2002 using purchased equipment cost Estimate b) Fixed capital investment at 2002 using turn over ratio d) Break-even point e) Return on investment (ROI) f) Payback period (PBP)

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