QUESTION $1(55)$

$2\mathrm{.}1$ Estimate ISBL capital cost of producing $35000$ barrels per day $($bpd$)$ Hydrocracking by Axens process $($N$.$B$,$ note the units conversion$).$ Use the Step$-$Count Method $($Bridgetwater$\text{'}$s water method$)$ assuming $3$ units and the Rapid Cost Estimate method. $(8)$

$2\mathrm{.}2$ Using the Annualized Cost Method, estimate the annual capital

charge ratio $($ACCR$)$ and the annual cost of the heat exchanger using Hastelloy C material that costs R$400000$ with a service life of $7$ years before replacement with $20\%$ cost of capital $($study example $1\mathrm{.}10,$ page $347).(4)$

$2\mathrm{.}3$ If Monel material was to be used for the exchanger above, would it be economical to use Hastelloy or continue with Monel material assuming Monel service life of $20?(6)$

$2\mathrm{.}4$ Your production company is considering expanding its production capacity for a new special product. The initial investment for the project is R$2$ million and the project is expected to generate cash flows of R$600,000$ per year for the next seven years. The company's cost of capital is $10\%.$

a$.$ What will be the NPV of the project? $(9)$

b$.$ Is the project financially viable or not, explain your answer in detail based on the assumptions made. $(3)$

$2\mathrm{.}5$ You have decided to buy an additional distillation column for R$250000,$ that will give you additional income of R$50000$ per year for the next $10$ years.

a$.$ You require that the $R250000$ must be paid within $5$ years, what will be the pay$-$back period of the project? $(4)$

b$.$ Is it worth investing in the additional distillation column or not, and why? $(3)$

$2\mathrm{.}6$ Estimate the cost of the Product purification column: $304$ stainless steel plate column $($vertical vessel$),$ diameter $1m^2,$ height $20m,15$ sieve plates, design pressure $2$ bar. Four centrifugal pumps with $67$ litres per second and an explosion$-$proof motor of $1000kW$ will be used. $(18)$

$$ Note: This is a hemical engineering problem in chemical process design