A 2nd generation biofuels process has been developed that produces gasoline and diesel from wood chips....

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A 2nd generation biofuels process has been developed that produces gasoline and diesel from wood chips. It also produces light gas, char and Tar. The yields and the 2020 prices are given in the Table below. Products Gasoline + Diesel Light gas Char Tar Wt % yield 50 20 15 15 2016 prices, $/kg 1.08 0.25 0.1 0.85 a. If the wood chips costs $0.09/kg, what are the annual net earnings of the plant if the plant is designed to operate at 15,000,000 kg/month. Assume all other costs (labor, utility, maintenance, etc) are $800,000/day and the tax rate is 38%. b. If the goal is to achieve 10% ROI, how much capital can be spent to build the plant c. In 2021, the price of gasoline and diesel has dropped to $0.95/kg. With this drop, what are the annual net earnings of the plant and the ROI.( assuming the plant gets built for the capital calculated in b. A 2nd generation biofuels process has been developed that produces gasoline and diesel from wood chips. It also produces light gas, char and Tar. The yields and the 2020 prices are given in the Table below. Products Gasoline + Diesel Light gas Char Tar Wt % yield 50 20 15 15 2016 prices, $/kg 1.08 0.25 0.1 0.85 a. If the wood chips costs $0.09/kg, what are the annual net earnings of the plant if the plant is designed to operate at 15,000,000 kg/month. Assume all other costs (labor, utility, maintenance, etc) are $800,000/day and the tax rate is 38%. b. If the goal is to achieve 10% ROI, how much capital can be spent to build the plant c. In 2021, the price of gasoline and diesel has dropped to $0.95/kg. With this drop, what are the annual net earnings of the plant and the ROI.( assuming the plant gets built for the capital calculated in b.

Answer rating: 100% (QA)

Lets calculate the annual net earnings of the plant and the ROI for each scenario a Annual Net Earni... View the full answer