What would the cash flow be for year

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Reference no: EM131287824

A proposal to manufacture 4969 ton/yr of a halogenated organic intermediate is set out below:

Estimated fixed capital cost $ 2405461

Construction time 2 years

Working capital 20% of FCI

Operating cost (exc. depreciation) $ 555.40 per ton of product

Revenue from sales $ 800 per ton of product

Plant life 10 years

Salvage value $ 328876

Income tax rate 43.696 %

Depreciation Life 7 years im 20%

Assume 50% of the total FCI is spent in first year of construction period

Use Straight line depreciation.

No Start-up expense

Land component of FCI is 20%.

What would the cash flow be for year 1. (Hint: You should not depreciate land)

Reference no: EM131287824

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