Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
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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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