Question: See attached image. Please submit an excel file and whatever material is necessary In reviewing current operating processes, the company accountant has provided you with
See attached image. Please submit an excel file and whatever material is necessary
In reviewing current operating processes, the company accountant has provided you with the following information about a small chemical process that was built ten years ago. Capital investment = $30 times 10^6 ($10 times 10^6 at the end of year 1, $15 times 10^6 at the end of year 2, $5 times 10^6 at the end of year 3. Working capital = $10 times 10^6) Over the last ten years, the average (after-tax) return on investment that non-process projects have yielded is 10%. a. What is the DCFROR for this project over the last 12 years? (Ignore land and working capital costs.) b. In retrospect, was the decision to build this plant a good one
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