The company uses a 10% discount rate for financial investments, create a profit and loss statement and a cash flow statement from the given information above for each plant type and at each location. So the Cryogenic Plant at Greene is one profit and loss state and then Cryogenic Plant at Bradford is another statement. Then the same for the other type of plant.

The proposed natural gas processing plant design is expected to have an operational life of 25 years. There are two main technologies considered for the plan design: cryogenic and reagent processing. Table 2: Evaluation of the Costs and Benefits for the Two Natural Gas Processing Technologies Cryogenic Processing Reagent Processing Capacity 275 MMCF/d 200 MMCF/d $240 million Capital Cost $190 million Fixed Maintenance Costs $15 milliion per year $6 million per year Variable Maintenance Costs $0.11 per MCF $0.23 per MCF Recovery Fractions 98% of all products 95% of methane only $0.1 million per year $0.6 million per year Waste Costs Natural gas processing relies on one of two principal methods: a cryogenic-based method where the gases are cooled and then separated by distillation; and a reagent-based method that uses chemicals like potassium chloride and others to react with the unwanted constituents of the gas and remove them. The cryogenic process is more expensive, but it allows more of the non-methane constituents of the gas to be sold to various buyers. On the other hand, the reagent processing method works faster, and has a higher capacity, yet it produces more waste, and does not allow extra chemicals in the gas to be sold. The proposed natural gas processing plant design is expected to have an operational life of 25 years. There are two main technologies considered for the plan design: cryogenic and reagent processing. Table 2: Evaluation of the Costs and Benefits for the Two Natural Gas Processing Technologies Cryogenic Processing Reagent Processing Capacity 275 MMCF/d 200 MMCF/d $240 million Capital Cost $190 million Fixed Maintenance Costs $15 milliion per year $6 million per year Variable Maintenance Costs $0.11 per MCF $0.23 per MCF Recovery Fractions 98% of all products 95% of methane only $0.1 million per year $0.6 million per year Waste Costs Natural gas processing relies on one of two principal methods: a cryogenic-based method where the gases are cooled and then separated by distillation; and a reagent-based method that uses chemicals like potassium chloride and others to react with the unwanted constituents of the gas and remove them. The cryogenic process is more expensive, but it allows more of the non-methane constituents of the gas to be sold to various buyers. On the other hand, the reagent processing method works faster, and has a higher capacity, yet it produces more waste, and does not allow extra chemicals in the gas to be sold