Contemporary Engineering Economics (6th Edition)
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.

  1. (a) Compute the working-capital requirement during the project period.
  2. (b) What is the taxable income during the project period?
  3. (c) What is the net income during the project period?
  4. (d) Compute the net cash flow from the project during the first year.

TABLE P2.2 Financial Information for First Project Year

Chapter 2, Problem 2P, A chemical processing firm is planning on adding a duplicate polyethylene plant at another location.

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