The adipic acid plant described in Examples 6.11 and 6.12 is to be built in China, with

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The adipic acid plant described in Examples 6.11 and 6.12 is to be built in China, with a location factor of 0.85. Up to 45% of the total investment can be secured as a low-cost loan at an interest rate of 1%.
Adipic acid is used in the manufacture of nylon 6,6. It is made by hydrogenation of phenol to a mixture of

The adipic acid plant in Example 6.11 is built with 30% of the fixed investment in year 1 and 70% in year 2,

cannot be offset against revenues from other operations for tax purposes (i.e., no tax credits in years when

1. What is the cost of capital if the cost of equity is 40%?
2. What is the NPV for 15 years of production?
3. 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 Design

ISBN: 9780081025994

6th Edition

Authors: Ray Sinnott, R.K. Sinnott, Sinnott Gavin Towler

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