Question 61

CHNAT2 marksNeeds review
Information for a proposed greenfield project is provided in the table. The discounted cash flow for the fourth year is Rs ________ crores (rounded off to one decimal place).
Item
Value
Fixed capital investment (excluding land)
Rs 250 crores
Salvage value
Rs 0
Yearly revenue from product sales
Rs 120 crores
Yearly manufacturing cost (excluding depreciation)
Rs 30 crores
Interest rate
10% compounded annually
Annual taxation rate
30%
Depreciation method
Double declining balance over seven years
Plant start-up
2 years after project initiation

;

: years post start-up;

: Depreciation amount;

: Book value

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2022CH

GATE CH 2022 · Paper 1

Chemical Engineering · Original paper archive

Section
Chemical Engineering
Question type
Numerical answer (NAT)
Marks
2 marks

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