3.

ECONOMIC AND FINANCIAL ANALYSIS

3.1. Economic Analysis

Current market prices for the products have been used in the analysis.

Product prices –approximate–

- Light oil...............................800 $/ton

- Carbon-graphite.................130 $/ton
- Waste wire.........................210 $/ton

Capacity......................................10 tons/day
Number of workdays.................22/month
Number of employees...............18

6.1.1. Daily Production Costs - raw materials

For the Economic analysis, market values have been used, although the company HEMO SAN from
the city of Bar, for storing waste tires (charging 160$/ton) and used oils (charging 0.5$/kg), got
accredited for their recycling. Also, charging for storing medical waste has not been included.

6.1.1.A. WASTE TIRES

Waste tire price: US $ 40/ton
Total: 40$/ton X 10tons = 400$ per day

6.1.1.B. ADDITIVES (CATALYST)

Additives (catalyst): 500$/ton
Total 500$/ton x 0,0015 x 10tons = 7.5$ per day

6.1.1.C. ELECTRICITY
Feeder : ............................4h x 6.5kW = 26kWh
Fan : ..................................11h x 7.5kW = 83.5kWh
Soot pelletizer : .................7h x 4.5kW = 31.5kWh
Compressor : ....................11h x 7.5kW = 83.5kWh
Speed reductor : ..............11h x 5.5kW = 60.5kWh
Burner : ............................10h x 0.25kW = 2.5kWh
Water pump : ...................11h x 1.5kW = 16.5kWh
Gear oil pump: ..................11h x 1.5kW = 16.5 kWh
Other consumers : ..............................60kWh
TOTAL: ................................................380kWh
Consumption to be increased by 15% due to unexpected expenses.
  Total : 380kWh x 1.15% x 0.05 = 19$ per day
6.1.1.D. METHANE GAS
Gas needed: 700m3
Further calculations do not include gas consumption since it is a product of the reaction
itself.

6.1.2.E. WATER CONSUMPTION

Water: 60m3
Further calculations include water consumption at 10% out of total amount, on account of
evaporation, since the water is returned into the process...
Total: 0.6m3 x 0.8 = 4.8$ per day

6.1.1.F. EMPLOYEE SALARIES

Workforce for the operation of the Polycrack® 100 TPD machine

Total 
Title Number of employees Shifts Total Salary per employee monthly salary
per shift in INR in USD
CEO 1 1 1 1,500 1,500
Process Manager 1 2 2 850 1,700
Inner Material Operator 3 1 3 550 1,650
Electromechanical Engineer 1 1 1 900 900
JCB Operator 1 1 1 600 600
Semi-qualified Assistant 2 2 4 450 1,800
Security 1 1 1 400 400
Pellet Operator 1 1 1 550 550
Accountant, Payroll Clerk, HTP 1 1 1 800 800
Hygienic Technician 1 1 1 450 450
Secretary 1 1 1 700 700
Truck Driver 1 1 1 900 900
Total Employees 15 18 12.850

TOTAL: ..............................................12,850$ : 22 days = 584$ per day

Taxes, social contributions, and insurance of employees: 0.7 x 12,850 = 9000$/month.

Taxes, social contributions, and insurance of employees: 9,000 : 22 = 410$/day
Company and facilities insurance: 6,000 $/year 500$/month 17$/day

6.1.1.G. MANIPULATION DEVICES FUEL CONSUMPTION

Total: 40 liters x 1.3 = 52$ per day
Further calculations do not include gas consumption since it is a product of the reaction
itself.

Total daily production costs : USD 400+7.5+19+4.8+584+52+410+17 = 1,494$

Daily costs to be increased by 15% due to unexpected expenses, the total amounting to:

TOTAL DAILY COSTS: 1,494 $/day x 1.15% = 1,718 rounded to 1,720 $/day

6.1.2. Daily Sales Income

6.1.2.1. LIGHT OIL

Light Oil: 4tons
Price: $ 800/ton
Total: 4tons x 800$/ton = 3,200 $
6.1.2.2. STEEL WIRE
Steel Wire : 1ton
Price: $ 210/ton
Total: 1ton x 210$/ton = 210 $
6.1.2.3. GRAPHITE-PELLET
Graphite: 3tons
Price: $ 130/ton
Total: 3tons x 180$/ton = 390 $

TOTAL DAILY SALES INCOME: 3,200+210+390 = 3,800$/day

6.1.3. Net Gain

 DAILY INCOME – DAILY COST = 3,800 – 1,720 = 2,080 $/day

 MONTHLY INCOME: 2,080 $/day x 22 days = 45,760 $/month
 ANNUAL INCOME = 47,760 x 12 = 549,120 $/year.

6.2.Financial Analysis
The starting point for the financial analysis has been the loan for this project in the
amount of 1.900,000 EURO, the estimated investments’ worth. This amount refers to
the following items: land, buildings, equipment, machinery, insertion, permits, and
laboratory analyses.

6.2.1. SPECIFICATION OF INVESTMENTS

 Table 6
  INVESTMENT
STRUCTURE   IN EURO
1 2 3
I BUILDINGS 600,000 600,000
 
 II EQUIPMENT Pyrolysis 970,000 970,000
Truck 5 tons 30,000 30,000
Greifer Frontloader – Bobcat Skid-Steer Loader 20,000 20,000
  Forklift 28,000 28,000
Car 30,000 30,000
Truck Cistern 40,000 40,000
Tank 3.5 tons 5,000 5,000
Tank for Oil Storage 50,000 50,000
Wire Press 20,000 20,000
 III PERMANENT CURRENT ASSETS 200,000 200,000

 TOTAL INVESTMENTS 1.993,000 1.993,000

1 eur