A product is to be produced in a batch process. The estimated fixed capital investment is $5
Question:
A product is to be produced in a batch process. The estimated fixed capital investment is $5 million. The estimated raw materials cost is $100,000/batch, the estimated utility costs are $60,000/batch, and the estimated waste treatment cost is $23,000/batch. The revenue is predicted to be $220,000/batch. An initial scheduling scenario suggests that it will be possible to produce 22 batches/y. The internal hurdle rate is 15% p.a. before taxes over 10 years. Is this process profitable?
What is the minimum number of batches/y that would have to be produced to make the process profitable?
If 26 batches/y is the maximum that can be produced, what is the rate of return on the process?
Step by Step Answer:
Analysis Synthesis And Design Of Chemical Processes
ISBN: 9780134177403
5th Edition
Authors: Richard Turton, Joseph Shaeiwitz, Debangsu Bhattacharyya, Wallace Whiting