Question: Please help with question based on economic evaluation in Analysis, synthesis and design of chemical processes, Will upvote if helpful. Please help with steps, preferably
Please help with question based on economic evaluation in "Analysis, synthesis and design of chemical processes", Will upvote if helpful. Please help with steps, preferably on excel showing values and equations.
The projected cost of a new plant that produces methanol from natural gas at 102 metric tons (MT) per hour is given below. Draw a cumulative (discounted) after tax cash flow diagram:
Land Cost = $80 million Total Capital Investment $4 billion Fixed Capital Investment without Land = 60% in year 1, 25% in year 2, and 15% in year 3 (it can be assumed that the costs are evenly distributed throughout the year, but only discounted at the end) Working capital = 15 % of FCI Start-up at end of year 3 Product market value $6102/ MT
Cost of Manufacturing (without depreciation) = $3.7 billion Tax Rate = 28% Depreciation method = double declining balance method over 6 years with zero salvage value Length of time over which profitability are to be assessed = 10 years after start-up Internal rate of return = 10% p.a. Stream factor = 0.913
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