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The document you've provided is a project evaluation case for "Plásticos Plax S.A.," a company planning to develop a new manufacturing plant in Rancagua, Chile. It involves calculating an amortization schedule for a loan, constructing a cash flow table, and determining various project-related financial aspects.

Here is a breakdown of the given dataThe document you've provided is a project evaluation case for "Plásticos Plax S.A.," a company planning to develop a new manufacturing plant in Rancagua, Chile. It involves calculating an amortization schedule for a loan, constructing a cash flow table, and determining various project-related financial aspects.

Here is a breakdown of the given 

### Project Details:
1. **Loan Details**:
   - Loan amount: \$30,000
   - Term: 4 years
   - Annual equal payments of \$8,856 (7% interest capitalized annually).

2. **Production & Sales Projections**:
   - **First 3 years**: 3,500 units of products, 70% are product B (200-liter tanks), and 30% are product C (5,000-liter tanks). Product B sells for \$100, and product C for \$500.
   - **Year 4**: An additional 1,500 units will be produced, and product A (20-liter tanks) will be introduced, selling for \$20.
   
3. **Costs**:
   - Infrastructure: \$8,000
   - Machinery: \$10,000 (additional \$3,000 in the third year)
   - Land: \$15,000
   - Unit production costs: \$3 for labor, \$5 for materials, and \$2 for indirect costs.
   - Fixed manufacturing costs: \$7,000 annually, increasing by \$800 once production hits 5,000 units.
   - Sales and admin expenses: \$500 annually (sales) and \$700 annually (admin), increasing by \$300 in the last period.

4. **Depreciation**: Linear over 10 years, with a residual value of zero.

5. **Working Capital**: Initial requirement equivalent to 6 months of total costs, which is recovered in the 5th year.

6. **Taxation**: 10% corporate tax rate.

7. **Liquidation**: At the end of year 5, the company will sell the land and the rest of the fixed assets at their book value.

### What needs to be done:
- **Amortization Table**: Fill out the interest, amortization, and remaining balance for the loan.
- **Cash Flow Table**: Build a cash flow table considering revenues, costs, taxes, depreciation, working capital, and liquidation value.

### Next Steps:
Would you like help with constructing the amortization table or the full cash flow table? 

Let me know if you'd like any specific calculations or clarifications. Here are five related questions:

1. Would you like a breakdown of the cash flow for each year?
2. How should the working capital recovery be reflected in the cash flow?
3. Would you like help calculating depreciation for the assets?
4. Should we incorporate the additional machinery and increased fixed costs in year 4 into the cash flow?
5. Would you like assistance in determining the tax impact on the project?

**Tip**: When working with project evaluations, ensure to consider both the time value of money and cash flow timing when analyzing profitability.

Plásticos Plax is evaluating a project for a new manufacturing plant in Rancagua, Chile. The company plans to take a $30,000 loan payable over 4 years with equal payments at 7% interest capitalized annually. The new plant will produce various plastic containers with projected sales and production increases over the next 5 years. The task involves building an amortization table for the loan and a cash flow table considering production costs, sales revenue, taxes, depreciation, and liquidation at the end of year 5.

Analyze the financial projections for Plásticos Plax S.A.'s new manufacturing plant, including amortization of a $30,000 loan, cash flow table creation, tax impact, and liquidation. This problem covers key financial concepts like amortization, depreciation, and working capital recovery. Suitable for finance students.

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