A Company is presented with a silver nanoparticle catalyzed fixed bed

technology for producing ethylene oxide. They make ethylene, with capacity to produce

and sell $10$M tons$/$year of ethylene oxide. Their internal manufacturing cost of ethylene is

$$800/$ton$.$ Pilot trials showed the catalyst to be robust with full conversion and a net usage

$30-$kg catalyst$/$ton of ethylene oxide. Catalyst licensing cost is $$50$ per ton of ethylene

oxide produced. Expected selling price is $$1300/$ton$,$ expected to increase at $3\%/$year$.$ The

cost to build the plant is $$500$M and time to build and start production of EO is $2-$years.

Operating costs are $$400/$ton$.$ The company expects to exceed a hurdle rate of $40\%$ per

annum over a $6$ year period.

What is the e$-$factor? Score? What is the atom economy? Score?

How long before the investment is profitable? Is this a good investment?

What if operating costs are $$500/$ton$?$

Hint: Use the formula for compound interest to calculate the internal rate of return $($IRR$)$

and Net Present Value $($NPV$),$ which is sum of all present values or PV $=$ FV $/(1+$i$)$ n $,$ where

PV$=$ Present Value and FV$=$ Future inflows,

i $=$ interest rate per compounding period and n $=$ number of periods