(Solved): The fixed capital investment for an ammonia plant is Rs. 5108 and the working capital is 30% f th ...
The fixed capital investment for an ammonia plant is Rs. 5×108 and the working capital is 30% f the Total capital investment. The annual total product costs are Rs. 2 x 108 whereas the annual depreciation costs are Rs. 4×106. If the total annual sales are 5×108 and the income tax cate is 30%. Determine the net annual cash flow to the chemical plant after taxes? Also determine the rate of return and payback period.