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4. A chemical project with a fixed capital investment without land of $200,000. The operation of the chemical project starts at the end of year 1 with 8-years of project lifetime. The estimated revenue per year is $90,000, the estimated cost of manufacture without depreciation over the project lifetime is $25,000/yr, and the taxation rate is 40%. a. Please determine the yearly depreciation values using the standard MACRS method assuming surplus value of $5,000. b. Please determine the net profit for operation year 1, 5, and 8.

4. A chemical project with a fixed capital investment without land of $200,000. The operation of the chemical project starts at the end of year 1 with 8-years of project lifetime. The estimated revenue per year is $90,000, the estimated cost of manufacture without depreciation over the project lifetime is $25,000/yr, and the taxation rate is 40%. a. Please determine the yearly depreciation values using the standard MACRS method assuming surplus value of $5,000. b. Please determine the net profit for operation year 1, 5, and 8.

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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4. A chemical project with a fixed capital investment without land of $200,000. The operation of the chemical project starts at the end of year 1 with 8-years of project lifetime. The estimated revenue per year is $90,000, the estimated cost of manufacture without depreciation over the project lifetime is $25,000/yr, and the taxation rate is 40%. a. Please determine the yearly depreciation values using the standard MACRS method assuming surplus value of $5,000. b. Please determine the net profit for operation year 1, 5, and 8.
Transcribed Image Text:4. A chemical project with a fixed capital investment without land of $200,000. The operation of the chemical project starts at the end of year 1 with 8-years of project lifetime. The estimated revenue per year is $90,000, the estimated cost of manufacture without depreciation over the project lifetime is $25,000/yr, and the taxation rate is 40%. a. Please determine the yearly depreciation values using the standard MACRS method assuming surplus value of $5,000. b. Please determine the net profit for operation year 1, 5, and 8.
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