UR-new, which is even more efficient than the previous catalyst, UR. By using the UR-new,the added value in the production is set to be 60 USD per barrel.

The basis of the following calculations is a refinery that processes 30,000 barrels of oil a day and produces 365 days a year. For a refinery of this size, 110 tons of catalyst must be used. After 2.5 years,the catalyst must be replaced. Before UOP can attempt to sell the UR-new to refiners, they must first establish a selling price.

 

The development of UR-new has taken 3 years and the development cost is calculated to be 3.5 million USD per year.

The price of UR-new has now been established, and on that basis, sales of UR- new in the next 5 years will be: Year 1: 400 tons, Year 2: 700 tons, Year 3: 2,400 tons, Year 4: 3,800 tons and Year 5: 4,200 tons.

 For the next 5 years, the marketing costs for UR-new are planned to be 200,000 USD per year.

Assume that the gross margin on UR -new at the established selling price is 30,000 USD per ton.

Further, assume that UOP uses an interest rate of 20% per annum.

 Calculate the future value of the project. 

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Which of the following formulas in cell C8, when copied to cels C9 through C12, would yield the correct amount of double-declining-balance depreciation? A B 2 Cost 3 Salvage 4 Life (in years) $440,000 $40,000 5. January 1 book Depreciation Expense Accumulated December 31 value Depreciation book value 7 Year 8 $440,000 $176,000 $176,000 $264,000 $264,000 $105,600 $281,600 $158,400 10 $158,400 $63,360 $344,960 $95,040 11 $95,040 $38,016 $382,976 $57,024 $57,024 $17,024 $400,000 $40,000 12 Multiple Choice DBISIS2.SB$3,$054 AB) ( Prev 4 of 7 Next> 123 S264,000 $105,600 $281,600 $344,960 $158,400 $95,040 10 3 $158,400 $63,360 11 4. $95,040 $38,016 $382,976 $57,024 12 5. $57,024 $17,024 $400,000 $40,000 Multiple Choice -DESOS2,58$3.58$4 AH) =DDB($BS2,S0S3.58$4,A8) ODB$8$2.SBS3,5054.SAS8) -DDBIS8$2.$8$3,5054A$8) Which of the following formulas in cell C8, when copied to cels C9 through C12, would yield the correct amount of double-declining-balance depreciation? A B 2 Cost 3 Salvage 4 Life (in years) $440,000 $40,000 5. January 1 book Depreciation Expense Accumulated December 31 value Depreciation book value 7 Year 8 $440,000 $176,000 $176,000 $264,000 $264,000 $105,600 $281,600 $158,400 10 $158,400 $63,360 $344,960 $95,040 11 $95,040 $38,016 $382,976 $57,024 $57,024 $17,024 $400,000 $40,000 12 Multiple Choice DBISIS2.SB$3,$054 AB) ( Prev 4 of 7 Next> 123 S264,000 $105,600 $281,600 $344,960 $158,400 $95,040 10 3 $158,400 $63,360 11 4. $95,040 $38,016 $382,976 $57,024 12 5. $57,024 $17,024 $400,000 $40,000 Multiple Choice -DESOS2,58$3.58$4 AH) =DDB($BS2,S0S3.58$4,A8) ODB$8$2.SBS3,5054.SAS8) -DDBIS8$2.$8$3,5054A$8)

Answer rating: 100% (QA)

The future value of the project can be calculated by taking the total sales revenue and subtractin... View the full answer