Chemical Engineering > GATE 2015 > Financial Analysis
A proposed chemical plant is estimated to have a fixed capital (FC) of Rs. 24 crores. Assuming other costs to be small, the total investment may be taken to be same as FC. After commissioning (at t = 0 years), the annual profit before tax is Rs. 10 crores /year (at the end of each year) and the expected life of the plant is 10 years. The tax rate is 40% per year and a linear depreciation is allowed at 10% per year. The salvage value is zero. If the annual interest rate is 12%, the NPV (net present value or worth) of the project in crores of rupees (up to one decimal place) is _______.

Correct : 15.2

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