Question: Problem 7 . 1 It is proposed to set up a nitric acid plant based on Ostwald Process. The expected revenues and operating expenses in
Problem
It is proposed to set up a nitric acid plant based on Ostwald Process. The expected revenues and operating expenses in millions of dollars are presented below. The fixed capital investment for the plant is $ million with a working capital of $ million. Assume that all investments are made at time zero. Also, the present worth factor for cash flow in a year is Using MACRS depreciation schedule with a class life of years, determine
d The annual cash flows for all years
e Net present worth using nominal discount rate of for all years
f The DCFR
tabletableYeartableAnnual revenue in million $ siAnnual operating expenses without depreciation in million $
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