Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 2, Problem 2P
A chemical processing firm is planning on adding a duplicate polyethylene plant at another location. The financial information for the first project year is shown in Table P2.2.
- (a) Compute the working-capital requirement during the project period.
- (b) What is the taxable income during the project period?
- (c) What is the net income during the project period?
- (d) Compute the net cash flow from the project during the first year.
TABLE P2.2 Financial Information for First Project Year
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