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4. The Biofine process was developed by BioMetrics. Inc with funding from the U.S. Department of Energy (DOE). It is a relatively high temperature, dilute acid-catalyzed rapid hydrolysis of lignocellulosic biomass. The process refines the biomass feed into three products: levulinic acid, formic acid, and furfural. The process is flexible enough to utilize a wide range of feedstocks from wood and agricultural residues to paper sludge and municipal wastes. In the literature, it is claimed that this process is economically viable. In fact, a commercial plant was built in Caserta, Italy in 2005. It processes 50 dry tonnes of feedstock per day. [One tonne is 1000 kg or 2,204.62 lb.] Estimated costs for a much larger plant (processes 1000 dry tonnes feedstock per day) and producing ethyl levulinate as a final product are presented in the table below. Fixed Capital Investment (FCI) Salvage Value Utilities /year Labor and Maintenance/year Overheads/year Waste Disposal/year Raw Material Costs year $150,000,000 1% of FCI $500,000 $9,200,000 $2,300,000 $600,000 $27,000,000 The plant will produce 15,833 kg/h of ethyl levulinate. Assume the plant operates 24 hrs/day and 350 days/year. Consider a MACRS depreciation of 7 years, a tax rate of 42%, and an interest rate of i= 10%/yr over a project period of 20 years. a) Calculate the breakeven ethyl levulinate selling price per tonne. Use the provided spreadsheet simulator as a template to solve this part. Try using a solver tool to speed your solution. b) If the following variations occurred, build a 'spider graph' by plotting PW as a function of % deviation from the most likely estimate. Your graph will look similar to the one shown on Example 8.5 on your textbook (page 220) and covered in Lecture 18. Create new tabs on the template simulator to solve this part. c) Using your spider graph result, to which of the factors below is the project's present worth most sensitive to? Fixed Capital Investment (FCI) Price of Product Raw Material Price -20% and +30% (plot every 10%) -50% and +50% (plot every 10%) -10% and +15% (plot every 5%)