Economic Evaluation Report February 17, 2020

for ass 1

1. EXECUTIVE SUMMARY (2020 prices)

Total Capital Investment 15,695,000 $

Capital Investment Charged to This Project 15,695,000 $
Operating Cost 5,142,000 $/yr
Revenues 5,821,000 $/yr
Cost Basis Annual Rate 5,820,600 kg MP/yr
Unit Production Cost 0.88 $/kg MP
Net Unit Production Cost 0.88 $/kg MP
Unit Production Revenue 1.00 $/kg MP
Gross Margin 11.65 %
Return On Investment 11.53 %
Payback Time 8.67 years
IRR (After Taxes) 2.89 %
NPV (at 7.0% Interest) - 3,730,000 $
MP = Total Flow of Stream 'Produk'

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2. MAJOR EQUIPMENT SPECIFICATION AND FOB COST (2020 prices)

Quantity/
Standby/ Name Description Unit Cost ($) Cost ($)
Staggered
7/0/0 GR-101 Grinder 98,000 686,000
Size/Capacity = 193.29 kg/h
1/0/0 R-101 Stirred Reactor 912,000 912,000
Vessel Volume = 10203.12 L
1/0/0 DC-101 Decanter Centrifuge 345,000 345,000
Throughput = 2293.41 L/h
Unlisted Equipment 486,000
TOTAL 2,429,000

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3. FIXED CAPITAL ESTIMATE SUMMARY (2020 prices in $)

3A. Total Plant Direct Cost (TPDC) (physical cost)

1. Equipment Purchase Cost 2,429,000
2. Installation 1,032,000
3. Process Piping 850,000
4. Instrumentation 972,000
5. Insulation 73,000
6. Electrical 243,000
7. Buildings 1,093,000
8. Yard Improvement 364,000
9. Auxiliary Facilities 972,000
TPDC 8,027,000

3B. Total Plant Indirect Cost (TPIC)

10. Engineering 2,007,000
11. Construction 2,809,000
TPIC 4,816,000

3C. Total Plant Cost (TPC = TPDC+TPIC)

TPC 12,843,000

3D. Contractor's Fee & Contingency (CFC)

12. Contractor's Fee 642,000
13. Contingency 1,284,000
CFC = 12+13 1,926,000

3E. Direct Fixed Capital Cost (DFC = TPC+CFC)

DFC 14,769,000

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4. LABOR COST - PROCESS SUMMARY

Unit Cost Annual Amount Annual Cost

Labor Type %
($/h) (h) ($)
Operator 69.00 29,525 2,037,212 100.00
TOTAL 29,525 2,037,212 100.00

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5. MATERIALS COST - PROCESS SUMMARY

THE COST OF ALL MATERIALS IS ZERO. PLEASE CHECK THE MATERIAL BALANCES AND THE PURCHASING
COST OF RAW MATERIALS.

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6. VARIOUS CONSUMABLES COST (2020 prices) - PROCESS SUMMARY

THE CONSUMABLES COST IS ZERO.

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7. WASTE TREATMENT/DISPOSAL COST (2020 prices) - PROCESS SUMMARY

THE TOTAL WASTE TREATMENT/DISPOSAL COST IS ZERO.

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8. UTILITIES COST (2020 prices) - PROCESS SUMMARY

Unit Cost Annual Ref. Annual Cost

Utility %
($) Amount Units ($)
Std Power 0.10 206,548 kW-h 20,655 100.00
TOTAL 20,655 100.00

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9. ANNUAL OPERATING COST (2020 prices) - PROCESS SUMMARY

Cost Item $ %
Raw Materials 0 0.00
Labor-Dependent 2,037,000 39.62
Facility-Dependent 2,779,000 54.04
Laboratory/QC/QA 306,000 5.94
Consumables 0 0.00
Waste Treatment/Disposal 0 0.00
Utilities 21,000 0.40
Transportation 0 0.00
Miscellaneous 0 0.00
Advertising/Selling 0 0.00
Running Royalties 0 0.00
Failed Product Disposal 0 0.00
TOTAL 5,142,000 100.00

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10. PROFITABILITY ANALYSIS (2020 prices)

A. Direct Fixed Capital 14,769,000 $

B. Working Capital 187,000 $
C. Startup Cost 738,000 $
D. Up-Front R&D 0$
E. Up-Front Royalties 0$
F. Total Investment (A+B+C+D+E) 15,695,000 $
G. Investment Charged to This Project 15,695,000 $

H. Revenue/Savings Rates
Produk (Main Revenue) 5,820,600 kg /yr

I. Revenue/Savings Price
Produk (Main Revenue) 1.00 $/kg

J. Revenues/Savings
Produk (Main Revenue) 5,820,600 $/yr
1 Total Revenues 5,820,600 $/yr
2 Total Savings 0 $/yr

K. Annual Operating Cost (AOC)

1 Actual AOC 5,142,000 $/yr
2 Net AOC (K1-J2) 5,142,000 $/yr

L. Unit Production Cost /Revenue

Unit Production Cost 0.88 $/kg MP
Net Unit Production Cost 0.88 $/kg MP
Unit Production Revenue 1.00 $/kg MP

M. Gross Profit (J-K) 678,000 $/yr

N. Taxes (40%) 271,000 $/yr
O. Net Profit (M-N + Depreciation) 1,810,000 $/yr

Gross Margin 11.65 %

Return On Investment 11.53 %
Payback Time 8.67 years
MP = Total Flow of Stream 'Produk'

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