Company A wishes to build a 500 barrels /hr oil refinery in South Africa in 2019....
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Company A wishes to build a 500 barrels /hr oil refinery in South Africa in 2019. The cost of building a similar process plant in USA was $413 million in 2016. The location factor for South Africa in 2005 was 1.31, and the exponent of the cost capacity for the process is 0.7. Refinery construction cost index 1962 237.6 1980 822.8 2016 2598.7 2017 2690.5 2018 2800.5 2019 2836.9 Year 2005 2010 2016 2019 Exchange rate ZAR/USD R6.65 R7.54 R15.81 R16.00 1.1. Using the information provided determine the cost of building this refinery in South Africa. (8) 1.2. How would the answer to question 1.1 change if the capacity of the $413 million plant in the USA were 215 barrels/hr? (12) Company A wishes to build a 500 barrels /hr oil refinery in South Africa in 2019. The cost of building a similar process plant in USA was $413 million in 2016. The location factor for South Africa in 2005 was 1.31, and the exponent of the cost capacity for the process is 0.7. Refinery construction cost index 1962 237.6 1980 822.8 2016 2598.7 2017 2690.5 2018 2800.5 2019 2836.9 Year 2005 2010 2016 2019 Exchange rate ZAR/USD R6.65 R7.54 R15.81 R16.00 1.1. Using the information provided determine the cost of building this refinery in South Africa. (8) 1.2. How would the answer to question 1.1 change if the capacity of the $413 million plant in the USA were 215 barrels/hr? (12)
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Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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