I need all the NPVs answered in this question... I can\'t find it and i do know

Question

I need all the NPVs answered in this question... I can't find it and i do know how to solve for NPV... Please help me out!! I screenshotted it for your convenience.

A's NPV needs to be negative since its rejected and B-C both need to be positive NPV's as they will be accepted

Year OYear 1 Year 2 Year 3Year 4 Year 5-10 100 Investment Required rate of return Production, millions of pounds per year Spread, $ per pound Production costs Transport Other costs 13% 53 1.33 43 17 106 1.33 43 106 1.23 43 106 1.08 43 1.33 1.33 a-1. Calculate the NPV of the proposed polyzone project, if spread in year 4 holds at $1.23 per pound (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value a.2. What's the right management decision? The project is acceptable The project is not acceptable b-1. Calculate the NPV of the proposed polyzone project, if the U.S. chemical company can start up polyzone production at 53 million pounds in year 1 rather than year 2. For year 4, assume the spread in year 3 still applies. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value b-2. What's the right management decision? The project is acceptable The project is not acceptable. c-1. Calculate the NPV of the proposed polyzone project, if the U.S. company makes a technological advance that reduces its annual production costs to $31.5 million. Competitors' production costs do not change. For year 4, assume the spread in year 3 still applies. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value c-2. What's the right management decision? ) The project is acceptable OThe project is not acceptable

Explanation / Answer

a-1 year PVF(13%,nyear) cash flow present value Total cost present value

1 0.885 0 0 33 29.21

2 0.783 (53*$1.33) 55.19 93 72.82

3 0.693 (106 * $1.33) 97.70 85 58.91

4 0.613 (106*$1.23) 79.92 85 52.11

5-10 2.452 (106*$1.08) 280.70 85 208.42

513.51 421.47

NPV = 513.51 - ( 421.47 + 100)

   = 513.51 - 521.47

   = -7.96

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