In class practice: NPV Example: Annually, a pyrolysis plant produces biooil and biochar 5775 tonne and 5775 tonne, respe
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In class practice: NPV Example: Annually, a pyrolysis plant produces biooil and biochar 5775 tonne and 5775 tonne, respe
In class practice: NPV Example: Annually, a pyrolysis plant produces biooil and biochar 5775 tonne and 5775 tonne, respectively which are the sources of revenue for the plant. The market price of biooil and biochar is $921.56/tonne and $1000/tonne. Assume that annual cost of the plant is $5454000 and the life span of the plant 10 years. The corporate tax is 15%. The annul cost includes every cost associated with the plants (feedstock, labor, transportation, depreciation, mortgage, etc.). Determine the NPV of the plant. NPV, = (R4 – Ce)/(1+r) = t=1 8
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