Homework Answers
Answer:
PW = $6,569,440.34 = $6.57 millions
Workings:
![Year 1 of Construction Year 2 of Construction Final Year of Construction 10 Years of Maximum production 13 14 Year Construction cost (in million Remedial cost (in million Production (in million Revenue (in million Production cost (in million Cash flow (in million) PV Factor [1/(1+18%/year] Discounted cash flow (million) PW (in million) 12 ($150) ($150) 12 18 18 18 18 18 18 18 18 18 $72 $144 $216 $216$216$216 $216 $216 $216 $216 $216$216 $92 $13.61 $9.07 ($66) ($99(S99 $78 $117 $117 $117$117$117 $117 $117 $117 $117 ($99 ($99($991 ($99 ($99($99 $99) 0.847457б27| ($127.1 0.71818443| 0.608630873| 0.515788875| 0.437109| 0.370432| 0.313925| 0.266038| 0.225456| 0.191064| 0.161919| 0.13722| 0.116288| 0.0985 $40.23 $51.14 $43.34 $36 94 $16.05 $6.569440343](http://img.homeworklib.com/questions/5f56bc40-6e4f-11ea-b583-851b3136a044.png?x-oss-process=image/resize,w_560)
Revenue = Production * $12 per
pound
Production cost = Production * $5.50 per pound
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