Operations for tax purposes

Assignment Help Chemical Engineering
Reference no: EM13884250

The adipic acid plant from Examples 7.8 and 8.2 is built with 30% of the fixed investment in year 1 and 70% in year 2, and the plant operates at 50% of capacity in year 3 before reaching full capacity in year 4. The plant can be depreciated by the straight-line method over ten years and profits can be assumed to be taxed at 35% per year, payable the next year. Assume that losses cannot be offset against revenues from other operations for tax purposes (i.e., no tax credits in years when the plant makes a loss). Estimate the following:

a. The cash flow in each year of the project

b. The simple payback period

c. The net present value with a 15% cost of capital for 10 years and 15 years of production at full capacity

d. The DCFROR for 15 years of production at full capacity

Is this an attractive investment?

Reference no: EM13884250

Questions Cloud

Prepare report on aims and activities of the organization : Identify a professional organization related to your desired role; report on the aims and activities of the organization. Also, describe the research interest of the organization. Submit the assessment in a 2- to 3-page Microsoft Word document.
Compare the mean baseline and posttest depression scores : Compare the mean baseline and posttest depression scores of the control group
Calculate and interpret the standard error : Calculate the probability that one package of cookies weighs between 31.8 and 32 ounces. Consider a sample of 20 individual packages. Calculate and interpret the standard error
How much will your bond duration : Calculate the YTM and YTC and what is the point you would use to value the bono and How much will your bond duration
Operations for tax purposes : Assume that losses cannot be offset against revenues from other operations for tax purposes (i.e., no tax credits in years when the plant makes a loss). Estimate the following:
Devise a control system for reactor : Devise a control system for this reactor, and draw up a preliminary piping and instrument diagram. The following points need to be considered:
Estimate the mean solution time for the algorithm : Estimate, with 95% confidence, the mean solution time for the algorithm. Interpret the result. How many problems must be solved in order to estimate μ to within 0.25 seconds with 95% confidence
Alternative process for converting benzene : An alternative process for converting benzene to cyclohexane also uses a supported noble metal catalyst, but carries out the reaction in the liquid phase, at a temperature of 160 °C and pressure of 100 bare, in a slurry reactor.
The following are various potential misstatements : The following are various potential misstatements due to errors or fraud (1 through 7), and a list of auditing procedures (a, through h.)

Reviews

Write a Review

Chemical Engineering Questions & Answers

  Refrigeration of the overhead condenser

Ethylene and propylene are valuable monomers. A key step in the recovery of these materials is fractionation of the olefin from the corresponding paraffin (ethane or propane). These fractionation steps require refrigeration of the overhead condens..

  Bed of solids on the belt fluidize

The solid particles have average diameter 3 mm and piece density 730 kg/m3. Hot air at 150 ºC is blown up through the dryer belt at a volumetric flow rate of 7200 m3 /hr per m2 of belt area. Will the bed of solids on the belt fluidize?

  Define large blooms of algae result from high nutrient

Large blooms of algae result from high nutrient loading in rivers and lakes, for example, as a result of runoff of fertilizers from agricultural fields.

  What is the volumetric efficiency

What is the volumetric efficiency

  Find the air fuel ratio for stoichiometric combustion

Find the air fuel ratio for stoichiometric combustion of Butane by volume. Calculate the percentage of carbon dioxide present in the DRY flue gas if 30% excess air is used

  Calculate the tower height and what are the values of f

Calculate the tower height, Z, and tower diameter, D, needed so that the Z/D ratio is about 4 and at this optimum condition, what are the values of f, Tez, and air flow rate, G?

  Calculate the values of the work interchange

Determine the values of the constants a and c and state the units and draw the path on a PV diagram also draw Path on the diagram and calculate the heat and work interchanges between the system and surroundings.

  The ponchon-savaret and mccabe-thiele methods

Calculate the theoretical stages needed to separate a 10 mole% ethanol liquid saturated feed into a 80 mole% distillate and a 0.1 mole% bottoms at 1 atmosphere pressure.

  What is the drawdown

What is the drawdown at the perimeter of the well pumping 225 gpm when both wells are operating?

  What is the maximum efficiency of a steam

What is the maximum efficiency of a steam engine operating between 20° C and the boiling point of water, 100 °C, at one atmosphere?

  An electron falls from the conduction band of silicon

An electron falls from the conduction band of silicon (Si) to the valence band. The band gap of Si is 1.1 eV. What is the wavelength of the photon emitted by this process? Give your answer in nm

  Calculating reaction at support we say centorid of triangle

In Uniformly varying load in simply supported beam, when we are calculating reaction at support we say centorid of triangle will be at 2x/3 from a to b. but, when calculating moment we say centroid will lies at x/3 from a to b, why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd