Question: A unit processing 80 tonnes per day is going to be built in 2022. a. How much is it expected to cost to build the

A unit processing 80 tonnes per day is going to be built in 2022.

a. How much is it expected to cost to build the unit in 2022 given that a similar unit processing 30 tonnes per day cost 70,000 in 2003?

Take the exponent as 0.6 and inflation as 2.1%.

CPE Index in 2003 = 402.0

CPE Index October 2018 = 616.4

b. If the unit operates for 320 days/year and makes 3.50 profit for every tonne processed, what is the payback time?

c. Is the project economically viable if the company requires a RORI of 40%? Give your reasons.

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