If coal is actually projected to sell for $45/ton, what is the breakeven price of diesel ?

A) Approximately $1.25/gal

B)Approximately $2.10/gal

C)Approximately $1.57/gal

D)Approximately $1.36/gal

E)None of the above

Fischer-Tropsch Technical and Economic Ana SIS Price structure Naphtha 4,262 1.30 $/gallon Bbl/Day Diese 5,347 1.96 $/gallon Bbl/Day Export Power 35 $/MWh Mwe Slag 45 Sulfur 10 $/ton 123 CO2 91 MMscfd (4,254) Coal 54.77 $/ton $147,148,057 Capacity Factor of 85% Cash Flow calculations $147,148,057 Gross Margin ($52,000,000) O&M Cost B/T cash flow $95,148,057 ($38,059,223) Taxes 40% tax rate AVT cash flow $57,088,834 $887,132,000 straight line 20 years $44,356,600 Depreciation $17,742,640 Cash flow $74,831,474 years 0-20 Cash flow years 20-30 $57,088,834 Net Gross Margin ear $84,937,398 $160,660,240 $12,110,700 $448,950 $0 ($85,041,927) $173,115,361 NPV 626 PV yr 1-20 PV yr 20-30 Capital NPVs $858,311,112 $138,874,556 ($887,132,000) $110,053,668