A new process to produce adipic acid from cyclohexene has been developed. The fixed capital investment of
Question:
A new process to produce adipic acid from cyclohexene has been developed. The fixed capital investment of the process that utilizes 800 ktons/year cyclohexene was estimated to be € 150 million in 2015. The process yield is 40%. A larger plant which produces 750 ktonsłyear of Question 3 adipic acid is to be built in 2021.
The scaling factor for this process has been found to be 0.65.
1. Since a cost index for 2021 is not available, determine the average annual escalation for the period that the cost indices are available.
2. Estimate the cost of the 750 kton/year adipic acid plant in 2021. A contingency of 15% should be included.
3. Estimate the cost of the 750 ton/year adipic acid process given that the process consists of 6 functional units.
4. Determine the selling price of adipic acid (in 2021) that will give a turnover ratio of 2.6.
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs