Lignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do itcost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If thecompany's hurdle rate (MARR) is 15% per year, is this a profitable undertaking?Click the icon to view the diagram for cash flows.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year.The present worth of the venture is $ million. (Round to two decimal places.)According to the PW Decision Rule, the investmentV economically justified.

Present worth is that the idea that states associate degree quantity of cash these days is value…

Lignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in S millions). If the company's hurdle rate (MARR) is 15% per year, is this a profitable undertaking? Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. The present worth of the venture is $ million. (Round to two decimal places.) According to the PW Decision Rule, the investment V economically justified.

Lignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in S millions). If the company's hurdle rate (MARR) is 15% per year, is this a profitable undertaking? Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. The present worth of the venture is $ million. (Round to two decimal places.) According to the PW Decision Rule, the investment V economically justified.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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