Q3 [Total: 20 marks] New equipment will be added to a conventional chemical plant on a well-developed site so as to shift the production process to new product and the investment that is needed for the plant is from company fund. The new added equipment are two boilers having steam flow rate of 5000 kg/hr under pressure 20 bar, one cone crusher having a capacity of 20 ton/hr, one stainless floating roof storage tank each having a capacity of 20 m3, and carbon steel absorption tower of diameter 5 m, height 10 m, 30 sieve plates (the cost of 1 plate equals to $116 at 1979), operating pressure is 6 bar. The already existing equipment have a nowadays total cost of L.E 8000,000. The life time of all equipment is 20 years and obey the straight line depreciation method with L.E 50,000 salvage value. The annual direct variable cost which consists of raw materials, utilities, miscellaneous materials, and Page 5 of 11 nics shipping and packaging is L.E 1 x 106. Operating labour = 80 men at L.E 10 per S1 2020/2021 employee-hour. Plant operates 300 days 24 hours per year. The general expenses (indirect cost) is L. E 0.5 x 106. Accordingly, estimate the following a) The new fixed Capital investment for the plant b) Calculate the manufacturing and production cost (12 marks) ($ 1= L.E 10, Chemical Eng. Cost index =240 in 1979 and 508 in 2021) (8 marks) 202 Formula sheet 1: Fixed Capital investment (FCI) and Manufacturing cost table Fixed Capital Investment Fluid A Item Equipment Cost Installation Piping Instrumentation Electrical Utilities Storage Site Development Ancillary building Total (Physical Plant Cost) Design and Engineering Contract's fee Contingency 0.4*A 0.7*A 0.2*A 0.1*A 0.5*A 0.15*A 0.05*A 0.15*A B 0.3*B 0.05*B 0.1*B Manufacturing cost table (dire Fixed) Item Fluid Labor C* 0.2 Supervision C* 0.5 Plant Overhead D Depreciation FCI * 0.02 Interest FCI * 0.01 Insurance FCI * 0.01 Rent FCI * 0.01 Royalities FCI * 0.1 Maintenance Engineering Economics 1000.0 S1 2020/2021 100.0 Equipment cost, $1000 10.0 (3) 1.0 1.0 100.0 100 Vessel height, m (b) US dollars 1.0 1.0 100.0 100 Vessel height, m (b) US dollars Diameter, m -0.5 3-2.0 (2-1.0 43.0 Material factors C.S. S.S. Monel S.S. cad x 1.5 Monel clad X 1.0 X 2.0 x 3.4 x 1.2 Pressure factors 1-5 bar x 1.0 5-10 10-20 20-30 30-40 40-50 50-60 X 2.1 x 1.6 x 1.8 x 2.2 Purchased cost = (bare cost from figure)