Question: A fluid processing unit (distillation process unit for separation of aromatic products of petrochemical plant) is required to be built. The purchased equipment cost for

A fluid processing unit (distillation process unit for separation of aromatic products of petrochemical plant) is required to be built. The purchased equipment cost for this plant is estimated to be $500,000. Most of items for direct costs and indirect costs of this plant are similar to the average values reported in your textbook for typical fluid processing units (as percentage of delivered equipment cost). Only the following items are different: Piping (installed) cost is 13% of fixed capital investment. Construction expenses are 32% of indirect costs. Working capital is 19% of total capital investment. Based on these data, calculate the total capital investment, the working capital investment, and the fixed capital investment.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!