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1) The total capital investment for a chemical plant is $1 million, and the working capital is $100,000. If the plant can produce an average

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1) The total capital investment for a chemical plant is $1 million, and the working capital is $100,000. If the plant can produce an average of 8000kg of final product per day during a 365-day year, what selling price in dollars per kilogram of product would be necessary to give a turnover ratio of 0.65 ? 2) The delivered-equipment cost for a fluid processing plant is OMR250,000. The plant is to be constructed as an addition to an existing plant. Estimate: i. The fixed capital investment, total capital investment and the working capital investment. ii. the percentage of the fixed-capital investment that is due to cost of contractor's fee iii. the percentage of the total capital investment that is due to yard improvements? (Max Peters,2014; with some modifications) Hint: - Use the ratio factors provided on Table 6.1 (but take the instrumentation as 43% and take building as 15% of the purchased equipment delivered). plant

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