Q4) The projected costs for a new plant are given below (all numbers are in $ 10°): Land cost $ 0.5 Fixed capital invest

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Q4 The Projected Costs For A New Plant Are Given Below All Numbers Are In 10 Land Cost 0 5 Fixed Capital Invest 1 (29.58 KiB) Viewed 16 times

Q4) The projected costs for a new plant are given below (all numbers are in $ 10°): Land cost $ 0.5 Fixed capital investment = $100 (all spend in first year) Working capital $12 Plant start-up at end of year one Cost of manufacturing (without depreciation) - $50 Tax rate= 10% Depreciation method=Current MACR over 5 years Project life time is six years after startup Revenue = 120 Salvage value of the plant = 10 For this project, do the following: a. Draw a cumulative (non-discounted) after-tax cash flow diagram. [10 Marks] for the project: b. From Part (a), calculate the following nondiscounted profitability criteria Cumulative cash position and cumulative cash ratio (1) [10 Marks] (11) Payback period [10 Marks] (iii) Rate of return on investment [10 Marks]