Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Charvon oil company is planning to make a large investment in coal-to-liquids (CTL) gasoline. The end product will be a perfect substitute for gasoline made from petroleum, but the feedstock will be coal instead of oil. Two technologies are available to the Charvon company. The first is called indirect CTL, where the coal is gasified prior to being liquefied. The second is called direct CTL, where the coal is dissolved in a solvent, and the resulting liquid is processed into gasoline. The Charvon company has hired you as a consultant to help them decide which technology they should choose. Charvon expects to produce one million gallons of CTL gasoline for five years following construction of the plant, and they can sell the gasoline for $3 per gallon. The capital cost of indirect CTL is $9 million and operating costs for indirect CTL (labor, fuel, and maintenance) are $600,000 per year. The capital cost of direct CTL is $9.45 million and operating costs for direct CTL are $500,000 per year.
In this question we will perform a sensitivity analysis on the timing of the CO2 tax. Calculate the NPV of each type of plant assuming that the $10 per ton CO2 tax is implmented at the beginning of years one, two, three, four and five. (You should thus have five different NPVs for each type of CTL plant, corresponding to the five different implementation dates.) Plot the NPV of each type of plant as a function of the year that the tax is implemented. Find (approximately) the threshold year of implementation under which the Charvon company would be indifferent between the direct and indirect CTL plants.
Melissa deposits 4000 dollars in an account paying 11.5 percent interest convertible monthly.
Whatever the service offering, customer service is very important. The saleswoman they interacted with wore funny looking shoes.
A study conducted by Eugene Fama, who is credited with the "efficient markets theory" which made the CAPM possible, and Kenneth French in early 1990s resulted
To supplement your planned retirement in exactly 38 ?years, you estimate that you need to accumulate ?$330, 000 by the end of 38 years from today.
What stock price is expected 1 year from now? What is the required rate of return?
Lee plans to retire in 22 years with a nest egg of $8M. He has already saved $500,000 in an investment account that generates a nominal rate of return of 12%, compounded quarterly. Numerically show that whether Lee’s investment account balance will r..
LUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,520,000 to purchase plus an additional $48,000 a year to operate. The machines have a five-year life after which they a..
Kolby’s Korndogs is looking at a new sausage system with an installed cost of $645,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $103,000. If the..
Based on the reading, momentum occurs due to…
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (r) is 11%, what is its current stock p..
Assume both portfolios A and B are well diversified, that E(rA) = 13.6% and E(rB) = 14.4%. If the economy has only one risk factor, and βA = 1 while βB = 1.1, what must be the risk-free rate?
Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd