Chemical Engineering
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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 ______.
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