Aplant is designed to produce 10,000 tons/year of product. total fixed capital investment is $2,500,000 and the plant operates about 8,400 h/yr. working capital is 5% of annual sales revenue. it is a highly automated continuous process involving four processing steps. plant overhead is 50% of labor payroll. supervision cost is $80,000 per year. repairs and maintenance cost are 10% of fci for the first year and then increase by $50,000 each year. the plant life is 10 years and the company accountant uses the sum- of-the-years-digits method for depreciation. salvage value of the plant is 10% of fci. selling and distribution costs are $100 per ton of product. general overheads are 10% of sales revenue. use tax rate of 25%. assume 1 year of construction period. additional information: • each ton of product requires: 1,400 kg raw material at $1.00/kg. 280 kwh electricity at $0.025/kwh 4,500 kg. steam at $2.5/1,000 kg 300 cubic m. cooling water at $0.05 per cubic m. 25 cubic m. of natural gas at $0.2 per cubic m a) what price should the company charge for the product in order to have a discounted cash flow rate of return of 30%? b) determine the profitability of the project using the npw criterion. plot both the non- discounted and discounted cash flow diagrams if it operates at 50% of full capacity for the first year and at 75% of full capacity for the second year. take im as 15%. hint: use the following equation for estimating operating labor cost ($30/hr) operating man - hours tons of products number of processing steps (plant capacity where l = 10 c) find the pay-back-time (pbt) either using the plotted non-discounted cash flow diagram or pbt cf, = 0. discuss whether the project is worth investing on or not.