An economic study of a proposed light oil recovery plant to recover light oils from a gas manufacturing firm has the following data:

Total investment P1,800,000

Total Annual expenses P500,000

Average Annual sales = 730tons of light oils and derivatives

A local chemical firm guarantees to purchase 3o tons monthly of benzene, one of the light oils, at a price of P50,000 per ton.

Paint factories guarantee 30 tons monthly purchase of light oil derivatives.Thefactories import their present supply at an average cost of P7,000 per ton.

The balance of oils can be sold to drug, rubber, plastic, and other companies at P7,500 ton.

Determine: a) the annual net profit

b) the recovery period of the investment

c) will you recommend such a project? Justify

NO SOLUTION FOUND An economic study of a proposed light oil recovery plant to recover light oils from a gas manufacturing firm has the following data: a.) Total investment P1,800,000 b.) Total Annual expenses P500,000 0.) Average Annual sales = 730 tons of light oils and derivatives A local chemical firm guarantees to purchase 30 tons monthly of benzene, one of the light oils, at a price of P50,000 per ton. Paint factories guarantee 30 tons monthly purchase of light oil derivatives. The factories import their present supply at an average cost of P7,000 per ton. The balance of oils can be sold to drug, rubber, plastic, and other companies at P7500 ton. Determine: a) the annual net prot b) the recovery period of the investment c) will you recommend such a project? Justify | NO SOLUTION FOUND |