4. You have designed a process that uses a solvent to convert oil sand into usable crude oil. It only requires one 5 m agitated reactor, a 5 l/s centrifugal pump, and a 50 m rotary dryer. With this equipment you convert 20 t of oil sands per day into 40 bbl of crude oil. It costs $20/t to extract the oil sand and bring it to your process and the price of crude oil is $75/bbl. a. What is the capital cost of the system if you decide to put this in at your Houston plant? Since you have an existing facility and this is a small project, you do not need to include OSBL, E&C, and contingency in the capital cost. b. You also need to charge the system initially at startup with 2000 gal of solvent at $30/gal, but the solvent is continuously recycled during the process. If solvent loss and operating costs amount to $150,000/yr and you ignore taxes, what is the simple payback of this process (assume you operate 5 days a week for 50 weeks each year)? c. If your corporate tax rate is 21% and you could use 7-year MACRS depreciation on your process, how much tax would you owe from the third year of operation? d. Imagine you already installed this at your plant about 10 years ago and you are worried about the recent drop in oil prices. Using the case described in (b) and ignoring taxes, at what crude oil price would it not be economically feasible to run this plant?