Cost of land, L = RM 5.

76
Total fixed capital investment, FCIL = RM 327.8593
Fixed capital investment during year 1 = RM 215.061
Fixed capital investment during year 2 = RM 142.002
Plant start-up at end of year 2
Working capital = RM 73.0590
Yearly sales revenue, R = 920
Cost of manufacturing, COMd = 800
Taxation rate, t = 0.20
Interest, i = 0.15
Salvage value of plant, S = 0
Depreciation = Use straight line over 7 years
Assume project life at 15 years

Discounted Cash Flow for Production Of Styrene

En
d

Investm

Dk

of

ent

(RM

Yea

(RM 106)

106)

-5.76

r
0

-215.061

-215.061

FCIL -
dk
(RM
106)
327.859
3
327.859
3
327.859
3

46.837
0

281.022

46.837
0

234.185

46.837
0

187.348

46.837
0

140.511

46.837
0

46.837

COMd

(R-COMd-dk)x (1-

Cash

Cumulative

(RM

(RM

t)+dk

Flow

Cash Flow

106)

106)

(RM 106)

(RM 106)

(RM 106)

-5.76

-5.76

920

800

105.3674

920

800

105.3674

920

800

105.3674

920

800

93.6743

920

46.8370

920

3
3
3
3

215.061
215.061
105.367

cumulative
Discounted Cash

discounted

(RM 106)

cash flow
(RM 106)

-5.76

-5.76

-220.821

0.8696

187.017

-192.7770

0
-435.882

0.7561

162.607

-355.3846

6
-330.5146

0.6575

69.2791

-286.1055

-225.1472

0.5718

60.2491

-225.8564

105.367
4

-119.7798

0.4972

52.3887

-173.4673

105.3674

105.367
4

-14.4124

0.4323

45.5503

-127.9174

800

105.3674

105.367
4

90.9550

0.3759

39.6076

-88.3098

800

105.3674

105.367

196.3224

0.3269

34.4446

-53.8652

4
105.367
4

46.837
0

920

800

105.3674

105.367
4

301.6898

0.2843

29.9560

-23.9092

10

920

800

96

96

397.6898

0.2472

23.7312

-0.1780

11

920

800

96

96

493.6898

0.2149

20.6304

20.4524

12

920

800

96

96

589.6898

0.1869

17.9424

38.3948

920

13
14
15
16
17

920
920
920
920

96
96
96
96
96

96
96
96
96
96

685.6898
781.6898
877.6898
973.6898
1069.6898

0.16
25
0.14
13
0.12
29
0.10
69
0.09
29

15.6000

53.9948

13.5468

67.5416

11.7984

79.3400

10.2624

89.6024

8.9184

98.5208