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3.(a) Use a discounting method to assess the profitability of a proposed 40 000 t y acetic acid plant using the data below. The plant
3.(a) Use a discounting method to assess the profitability of a proposed 40 000 t y acetic acid plant using the data below. The plant is based on conventional technology and the market is well-established. (13 marks) DATA Capital cost Operating cost 250/tonne product Income Working capital 3 months operating costs Plant life 30 million, built in one year 450/tonne product 5 years (b) Explain the meaning of the following terms. Amortisation. (4 marks) (ii) Economy of scale. (5 marks) (ii) Return on investment
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