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The purchased equipment cost, PEC (or delivered equipment cost, E) for a plant which produces 70000 ton methanol per year is estimated to be 110

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The purchased equipment cost, PEC (or delivered equipment cost, E) for a plant which produces 70000 ton methanol per year is estimated to be 110 x 106 TL. All other costs are close to the average values found for typical chemical plants. The cost data: Raw Material (Carbondioxide, Hydogen) and catalyst cost, Crm= 15 x 106 TL/year Operating Labor Cost, Col= 5 x 106 TL/year Utility Cost (Electricity, water, etc.), Cur= 6 x 106 TL/year Waste Treatment Cost, Cwr= 4 x 106 TL/year Selling Price of Methanol: 3.5 TL/kg a. Estimate Fixed Capital Investment (FCI) and Total Capital Investment b. Estimate manufacturing cost in TL/year and TL/kg of methanol c. Estimate Annual Net Profit (Tax rate=0.25 x Income) d. Estimate Rate of Return on Investment e. Determine the break-even point of the plant Additional data: Working Capital is 15% of Total Capital Investment DMC (TL/year)= Crm + Cwt + Cut + 1.33Col + 0.069FCI + 0.03COM FMC (TL/year) = 0.708Col + 0.068FCI + Depreciation GE (TL/year) = 0.177COL + 0.009FCI + 0.16COM COM (TL/year) = DMC + FMC + GE Depreciation (TL/year) = 0.05FCI DMC: Direct Manufacturing Cost FMC: Fixed Manufacturing Cost (Fixed Charges) GE: General Expenses COM: Total Manufacturing Cost

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