Please help me with this land project assignment The projected costs for a new plant are given below (all numbers are in Millions):Land Cost = $10Fixed Capital Investment without land = $100 ($40 at end of year 1, $40 at end of year 2, and $20at end of year 3)Working Capital = $20 (at start-up)Start-up at end of year 3Revenue from sales are $80 for the entire project lifetime of 10 years.Cost of manufacturing (without depreciation) = $25Tax rate = 40%Depreciation method = Current MACRS over 5 yearsInternal rate of return = 10% p.a. (Interest rate)(1). For this project, please do the following:a. Draw a cumulative (non-discounted) after-tax cash flow diagram.b. From Part (a), calculate the following non-discounted profitability criteria for the project:(i) Cumulative cash position and cumulative cash ratio(ii) Payback period(iii) Rate of return on investmentc. Draw a cumulative (discounted) after-tax cash flow diagram.d. From Part (c), calculate the following discounted profitability criteria for the project:(i) Net present value and net present value ratio(ii) Discounted payback period(iii) Discounted cash flow rate of return (DCFROR)

CalculationsYearFixed Capital InvestmentWorking CapitalRevenueManufacturing CostDepreciationTaxable…

Answered: The projected costs for a new plant are…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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A rock concert producer has scheduled an outdoor concert. The producer estimates the attendance will depend on the weather according to the following table. Weather Attendance Probability wet, cold 4000 0.1 wet, warm 25000 0.1 dry, cold 30000 0.1 dry, warm 45000 0.7 (a) What is the expected attendance? (b) If tickets cost $ 30 each, the band will cost $ 250,000, plus $ 55,000 for administration. What is the expected profit?
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