What is the irr if the debt must be amortized over 15 years


The adipic acid plant described in Examples 9.5 and 9.9 is to be built in China, with a location factor of 0.85. The cost estimate needs to be updated from 2006 to 2012. Up to 45% of the total investment can be secured as a low-cost loan at an interest rate of 1%.

a. What is the cost of capital if the cost of equity is 40%?

b. What is the NPV for 15 years of production?

c. What is the IRR if the debt must be amortized over 15 years as a fixed cost of production?

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Chemical Engineering: What is the irr if the debt must be amortized over 15 years
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