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The total capital investment for a chemical plant that produces epoxide is $10 million. The plant...

The total capital investment for a chemical plant that produces epoxide is $10 million. The plant produces 3.12 million kg of the epoxide annually. Working capital is 20% of fixed capital. The selling price of the epoxide is $0.93/kg, and raw materials cost $0.21/kg. The utilities for the plant amount to $0.13/kg, and the packaging and delivery amounts to 4.5% of the total cost. The tax rate is 35%. Depreciation is over 15 years.

(i) Determine the costs of production

(ii) Determine the revenues

(iii) Determine the taxes

(iv) Determine the free cash flow

(v) Construct the project financials for the first five years of the plant's life.

engineering   Chemical-Engineering   
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Answer #1

CDetes mination cest of feoductten eeren 너 es -taxed, free cash Flow etc aiven dada Total Capital Prvey t ment CTct)と 率10 mil: total selin-toiel Pocuasion Par k egin peice ftee Reventer11 33, 064 /ze (iii) tamed dedlucing Costs tang 624572,4-年/dt Clo

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