Page 343 - Analysis, Synthesis and Design of Chemical Processes, Third Edition

Over the last ten years, the average (after-tax) return on investment that nonprocess projects have
yielded is 10%.

a. What is the DCFROR for this project over the last 12 years? (Ignore land and working capital
costs.)

b. In retrospect, was the decision to build this plant a good one?

The after-tax cash flows for a new chemical process are shown in Table P10.12. Using these data,
calculate the following:

Table P10.12 Nondiscounted Cash Flow Calculations for Problem 10.12 (All Figures Are in $
Millions)

12.

a. Payback period (PBP)

b. Cumulative cash position (CCP) and cumulative cash ratio (CCR)

c. Rate of return on investment (ROROI)

d. Discounted payback period (DPBP)

e. Net present value (NPV)

f. Discounted cash flow rate of return (DCFROR)

Use a 10% discount rate for Parts (d) and (e).

From the data given in Table P10.12, determine the following information regarding the calculations
performed for this analysis.

a. What taxation rate was assumed?

13. b. What was the total fixed capital investment?