Last Part

PAMANTASAN NG LUNGSOD NG MAYNILA
College of Engineering and Technology

Department of Chemical Engineering
CHE 0411-1 – Chemical Engineering Design
FACTORS FOR COST PROJECTION

1. PURCHASING POWER OF PESO
The Purchasing Power of the Peso (PPP) is a measure of the actual worth of the
peso in a specific time in comparison to a specified reference period. This measure is also
known as the value of the peso.
In this section of the research, the historical data of PPP from 2014 to 2020 are
utilized to predict the PPP in the year 2027, which is the beginning of the operation of
Ethygasyn, Inc. Through the use of the PPP that has been anticipated, all of the expenses
that are associated with the development of the plant will be forecasted.
FACTORS INFLUENCING PURCHASING POWER OF PESO
1. Exchange Rates
Exchange rates have an effect on the amount of goods and services that can be
purchased with a certain currency in a different nation. Businesses that are dependent on
overseas sources are more likely to be negatively impacted by price fluctuations. When
compared to the currency of another nation, the value of the peso decreases, which results
in an increase in the cost of acquiring goods and services denominated in Philippine Peso.
As a consequence of this, businesses who work with international vendors will need to
charge higher prices for their products, which will have an impact on the ability of
consumers to make purchases.
2. Income and Employment
The individual's income is the primary factor that determines their purchasing
power. When opposed to situations in which a person's income is lower, greater incomes
result in increased buying power for that individual. Additionally, an increase in the
number of people holding jobs will lead to an increase in the total amount of money spent
in the economy.
Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Cabral B.E., Frianela A.J., Garcia R.Jr., Serrano M.
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3. Prices
The prices of products and services have an effect on the amount of money
available for shopping. When the overall level of prices goes up, consumers have less
money to spend, and when overall prices go down, consumers have more money to
spend, assuming that all other things remain the same.
HISTORICAL DATA OF PURCHASING POWER OF PESO (PPP)
The Philippine Statistics Authority was the source of information used to compile the
historical statistics on the purchasing power of the peso in the Region IV-A (CALABARZON),
specifically, in Laguna Province for the years 2014-2020. The figures that are used in the
projection of the PPP for the years 2021 to 2027 are shown in table 12.4. There has been a
discernible trend toward a weakening in the purchasing power of the peso, which has led to a
reduction in the amount of goods and services being consumed. The historical statistics of the
peso's buying power are shown in figure 12.3, which covers the years 2014 through 2020.
Table 12.4: PPP from 2014 to 2020 (Region IV-A)
YEAR PPP
Value
2014 0.96
2015 0.96
2016 0.96
2017 0.94
2018 0.90
2019 0.89
2020 0.87

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Historical Data of Purchasing Power of

Peso (2014-2020)
0.98
0.96
0.94
0.92
0.9
0.88
0.86
0.84
0.82
2014 2015 2016 2017 2018 2019 2020
Figure 12.3: Historical Data of Purchasing Power of Peso
Figure 12.3 provides historical statistics on the buying power of the peso from 2014 to
2020. The Philippine purchasing power parity (PPP) index has been on a downward trend
recently, which may be attributable to the increased costs of goods and services in the nation as
well as the lower employment rate that has been reported in the Philippines.
PROJECTION OF PURCHASING POWER OF PESO

The purchasing power of peso for the years 2021-2027 was forecasted using five
different methods:
1. Arithmetic Straight Line

2. Arithmetic Geometric Curve
3. Statistical Straight Line
4. Statistical Geometric Curve
5. Statistical Parabolic Curve
Combined PPP Projection
A projection of the Purchasing Power of the Peso (PPP) is carried out in order to establish
the suitable PPP value in 2027 for the purpose of estimating the expenses that will be incurred in

270
the future for the design, procurement, and building of the manufacturing facility. Table #
presents an overview of anticipated values from 2021-2027 based on five distinct techniques of
projection. These approaches were used to generate the projections.
It was determined that the standard deviation, z-value, p-value, and t-value, together with
the Pearson correlation coefficient and the average decrement rate, were the most important
factors to consider when selecting the most effective technique of projection.
The first indication is the standard deviation, which is a statistic that may be used to
quantify the degree of variation or dispersion that exists among a group of data values (Bland &
Atman, 1996). A standard deviation that is low suggests that the data points have a tendency to
be situated in close proximity to the mean value, while a standard deviation that is large shows
that the data points are dispersed throughout a greater range of values.
In addition, the z-value, which is also known as the standard score, is a method for
comparing the outcomes of a test to the characteristics of a "normal" population. The distance
between the raw score and the mean of the population is expressed in terms of the standard
deviation, and the absolute value of z indicates that distance. When the raw score is lower than
the mean, Z is negative, and when it is higher than the mean, Z is positive.

271
PROJECTIONS OF PPP
ARITHMETIC MODELS STATISTICAL MODELS
Geometric Geometric Parabolic
YEAR Straight Straight
Curve Curve Curve
Line Method Line Method
Method Method Method
2021 0.86 0.86 0.86 0.86 1.26
2022 0.84 0.84 0.84 0.85 1.29
2023 0.83 0.83 0.82 0.84 1.32
2024 0.81 0.82 0.81 0.83 1.34
2025 0.80 0.81 0.79 0.82 1.37
2026 0.78 0.79 0.77 0.80 1.39
2027 0.77 0.78 0.76 0.79 1.41
DETERMINANTS/ INDICATORS
Standard 0.0324 0.0267 0.0367 0.0256 0.0533
Deviation
Correlation 0.95 0.95 0.95 0.95 0.93
Coefficient
R2 value 1.0000 0.9998 1.0000 0.9864 0.9951
Annual -1.57 -1.39 -1.75 -1.21 1.62
Decrement
Rate
Table 12.5: Summary of Projected PPP using Different Projection Methods

272
In addition, the percentage that is used in the technique of average decrement rates
shows the general direction of the PPP value. Because a low percentage of the average
decrement rate suggests a minimum drop in Peso value, the projection technique is more
favorable the lower the percentage of the average decrement rate is. This is because a high Peso
value throughout the period implies a strong Peso value. A high percentage of the average
decrement rate indicates that the value of the peso is significantly deteriorating as a result of
specific economic variables such as the inflation rate, the consumer price index (CPI), etc.
The five various projection methods are shown in Table 12.5. Except for the Statistical
Parabolic Curve, all projection methods exhibit a diminishing pattern, hence it is rejected.
The Statistical Geometric Curve had the lowest standard deviation of 0.0256, indicating
that the data points are generally close to the mean value, making this method the most precise.
The annual decrement rate was lowest when the statistical straight line was used. This
approach, however, is not used due to its huge standard deviation. Arithmetic Geometric Curve,
with a value of -1.39 percent, is the third to lowest annual decrement rate. A lower yearly
decrement rate is preferable since a greater annual decrement rate shows that the projection
model provides a very weak Peso value trend, which could result in a hyperinflation
phenomenon, which is extremely unlikely and unrealistic.
The R2 value should be as near to one as possible, as this indicates that it is close to the
real mean. The Statistical and Arithmetic Straight Line received a value of 1 for this. As a result,
it's a precise procedure.
Based on the criteria stated, Arithmetic Geometric Curve looks to be the best projection
method for PPP value among the other projection methods.

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COMPARISON OF PURCHASING POWER OF

PESO PROJECTION
PROJECTED PURCHASING POWER
1.6
1.4
1.2
1
OF PESO
0.8
0.6
0.4
0.2
0
2021 2022 2023 2024 2025 2026 2027
Arithmetic Straight Line Arithmetic Geometric Curve Statistical Straight Line

Statistical Geometric Curve Statistical Parabolic Curve
Figure 12.4: Comparison of Projection of PPP between the 5 Projection Methods
BEST PROJECTION FOR PURCHASING POWER OF PESO
The set of determinants was used to choose the most effective projection method for the
purchasing power of the peso. The approach with the most desirable results is chosen as the most
beneficial method out of the five options. The computed values used to compare five different
approaches are summarized in Table 12.6.
PROJECTIONS OF PPP

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Geometric Geometric Parabolic
Straight Straight
Curve Curve Curve
Line Method Line Method
Method Method Method
PPP in 2027 0.77 0.78 0.76 0.79 1.41
Standard
0.0324 0.0267 0.0367 0.0256 0.0533
Deviation
Correlation
0.95 0.95 0.95 0.95 0.93
Coefficient
R2 value 1.0000 0.9998 1.0000 0.9864 0.9951
Annual
Decrement -1.57 -1.39 -1.75 -1.21 1.62
Rate
BEST PROJECTION METHOD ARITHMETIC GEOMETRIC CURVE
Table 12.5: Correlation Data for Purchasing Power of Peso Projection
The preceding analysis of five different projection methods revealed that the Arithmetic
Geometric Curve Method has the best values of all.
It has a low standard deviation of 0.0267, indicating that the data are fairly similar. The
R2 value of an arithmetic geometric curve is 1, which is the closest to one. The closer it is to one,
the better, because it indicates that the data is close to the mean. Furthermore, its annual
decrement rate of -1.39 percent is minimal and practical.
Because the Arithmetic Geometric Curve technique is the most efficient, 0.78 is utilized
as the figure for the purchasing power of the peso in 2027.
INDICES OF COMPENSATION
The index of compensation is a method of projecting employee compensation that
changes over time. It's a quarterly report on compensation costs that comes out in the last month

275
of the quarter. Total salaries and earnings, commissions and other benefits, as well as the
employer's contribution to social security and pension plans and comparable benefits, make up
this category.
FACTORS AFFECTING THE INDEX OF COMPENSATION
The following factors influence the compensation index:
1. PERFORMANCE
Compensation is influenced by an employee's performance, the higher the
performance and productivity, the higher the compensation.
2. EXPERIENCE
Employee experience in a specific field provides significant insights to the
organization, resulting in efficient management and operation. A higher salary will be
paid to an employee with more experience.
3. GOVERNMENT CONTROL
The government plays a significant influence in determining the minimum wage
for employees. Employees' rights and interests are protected by government legislation.
To avoid legal repercussions, every organization is obligated to observe the rules.
As the company's operations progress, the following factors will be noticed.
HISTORICAL DATA OF INDEX OF COMPENSATION
The Philippines Statistics Authority provided the historical data for the compensation
index from 2014 to 2018, which is displayed in Table 12.7, with the trend of the values growing
as shown. The percentage increases in 2014-2015 and 2015-2016 were nearly identical, at 4.16
percent and 4%, respectively. The lowest percentage change was 3.74 percent in 2017-2018,
while the largest was 8.59 percent in 2016-2017.
Table 12.7: Index of Compensation from 2014 to 2018
YEAR INDEX OF COMPENSATION VALUE

276
2014 1318.8
2015 1373.7
2016 1428.7
2017 1551.4
2018 1609.35
HISTORICAL DATA OF INDEX OF

COMPENSATION (2014-2018)
1800
1600
1400
1200
1000
800
600
400
200
0
2014 2015 2016 2017 2018
Figure 12.5: Historical Data of Index of Compensation
Figure 12.5 shows the historical data for the compensation index from 2014 to 2018. A
rising pattern of compensation indices may result in the cost being passed on to customers,
resulting in finished goods price inflation.
PROJECTION OF INDEX OF COMPENSATION

Five distinct approaches were used to forecast the compensation index for the years
2019-2027:
277
1. Arithmetic Straight Line

2. Arithmetic Geometric Curve
3. Statistical Straight Line
4. Statistical Geometric Curve
5. Statistical Parabolic Curve
COMBINED INDEX OF COMPENSATION PROJECTION
The compensation index is projected in order to calculate the value of the compensation
index in the year 2027. Table 12.8 shows an overview of expected values from 2019 to 2027
using five different projection approaches.
Table 12.8: Summary of Projected Index of Compensation using Different Projection Methods

YEAR ARITHMETIC STATISTICAL MODELS
MODELS
Straight Geometric Straight Geometric Parabolic
Line Curve Line Curve Curve
Method Method Method Method Method
2019 1,681.99 1,691.79 1,479.24 1,697.50 4,231.62
2020 1,754.63 1,778.45 1,555.12 1,788.08 4,803.43
2021 1,827.26 1,869.55 1,631 1,883.50 5,399.98
2022 1,899.90 1,965.32 1,706.88 1,984 6,021.27
2023 1,972.54 2,066 1,782.76 2,089.87 6,667.31
2024 2,045.18 2,171.83 1,858.64 2,201.39 7,338.08
2025 2,117.81 2,283.08 1,934.52 2,318.86 8,033.60
2026 2,190.45 2,400.04 2,010.40 2,442.60 8,753.86
2027 2,263.09 2,522.98 2,086.28 2,572.94 9,498.86
DETERMINANTS / INDICATORS
Standard 191.03 273.80 199.16 288.40 1,735.89

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Deviation
Correlation 0.99 0.99 0.99 0.99 0.99
Coefficient
P-Value 2.88x10-5 1.84x10-5 2.88x10-5 1.82 x10-5 1.97 x10-5
Z-Value 1.71 1.81 1.71 1.81 1.78
Growth Rate 3.86 5.12 3.01 5.35 27.57
The standard deviation, p-value, z-value, correlation coefficient, and average growth rate
were computed and utilized as the foundation to determine the optimal projection method.
A low standard deviation means the data points are close to the mean value, whereas a
high standard deviation means the data points are spread out over a larger range of values.
Furthermore, the absolute value of z shows the standard deviation difference between the
raw score and the population mean. When the raw score is below the mean, Z is negative; when
it is above, it is positive.
The method of projection with the lowest standard deviation and a z-value near zero is
the most acceptable and efficient.

279
Furthermore, under the average growth rates method, the percentage represents the
annual growth rate or trend of the pay index. The better the projection approach, the larger the
percentage of the average growth rate.
COMPARISON OF INDEX OF COMPEN-

SATION PROJECTION
PROJECTED INDEX OF COMPENSATION
10,000.00
9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Year
Arithmetic Straigt Line Arithmetic Geometric Curve Statistical Straight Line

Statistical Geometric Curve Statistical Parabolic Curve
Figure 12.6: Comparison of Projection of Index of Compensation between the 5 Projection

Methods

280
BEST PROJECTION METHOD OF INDEX OF COMPENSATION
The obtained values of standard deviation, z value, growth rate, P-value, and correlation
coefficient were used to determine the most effective and best projection method for index of
compensation.
The computed values used to compare the five distinct approaches are summarized in
Table 12.9. Also given are expected figures for the year 2027. The approach with the most
realistic projected value, lowest standard deviation, appropriate z-value, p-value, correlation
coefficient, and increasing annual growth rate is preferred.

R
Straight Geometric Straight Geometric Parabolic
A YEAR
Line Curve Line Curve Curve
T
Method Method Method Method Method
E
PPP in 2027 2,263.09 2,522.98 2,086.28 2,572.94 9,498.86
Standard
1 191.03 273.80 199.16 288.40 1,735.89
Deviation
Correlation
2 0.99 0.99 0.99 0.99 0.99
Coefficient
3 P-Value 2.88x10-5 1.84x10-5 2.88x10-5 1.82 x10-5 1.97 x10-5
4 Z-Value 1.71 1.81 1.71 1.81 1.78
5 Growth Rate 3.86 5.12 3.01 5.35 27.57
Best Projection Method Arithmetic Straight Line
Table 12.9: Summary of Projection of Index of Compensation
The projected value of the Statistical Parabolic Curve has the highest average growth rate
and projected index of compensation among the five types of projection methods, but its

281
standard deviation is the worst of all the methods, implying that the data it produces is too far
from the mean or the least accurate among the methods. As a result, this procedure is
disqualified.
The Arithmetic Straight Line has the lowest standard deviation of 191.03, indicating that
the data points are generally close to the mean value, making this approach the most precise.
This strategy has the slowest rate of increase, which is preferable because it is more realistic.
Based on the criteria stated, Arithmetic Straight Line looks to be the best recommended
projection method for index of compensation among the remaining projection methods. The
compensation index for 2027 is predicted to be 2,263.09, according to the chosen method's
forecast.

282
PROCUREMENT
The essential equipment, auxiliaries, piping elements, buildings, and land must all be
purchased before Ethygasyn Inc can begin operations. The estimated cost of these materials is
shown below.
A. COST OF EQUIPMENT
The equipment was to be purchased in 2026, and the associated anticipated estimates
were derived using the formula below. It is calculated using the peso's purchasing power in the
base year of 2022 and the forecast year of 2026.
PPP 2022
Equipment Cost 2026 =Equipment Cost 2022 x
PPP 2026
Where: Purchasing Power of Peso on 2022 = 0.84
Purchasing Power of Peso on 2026 = 0.79

Table 12.10 shows the summary of equipment expenses needed by the manufacturing plant.
Locally acquired equipment is priced inclusive of tax.
Cost per Projected Cost per
Equipment Manufacturer Equipment Equipment (2026),
(2022), Php Php
PROCESS EQUIPMENT
Polyethylene HG Silos Grain
1 68,000 72,303.80
Waste Silo Management Solutions
Screw
2 AB Innovations 29,790 31,675.44
Conveyor 1
Screw
3 AB Innovations 29,790 31,675.44
Conveyor 1
Industrial
4 Wiscon Envirotech 524,700 557,908.86
Shredder
Screw
5 AB Innovations 29,790 31,675.44
Conveyor 2
Screw
6 AB Innovations 29,790 31,675.44
Conveyor 2
Multi Tubular
Chongqing Fengyu Electric
7 Fixed Bed 1,574,400 1,674,045.57
Equipment Co., Ltd.
Reactor
8 Multi Tubular Chongqing Fengyu Electric 1,574,400 1,674,045.57
283
Fixed Bed
Equipment Co., Ltd.
Reactor
HG Silos Grain
9 Char 1 Silo 68,000 72,303.80
Management Solutions
Cyclone Baichy Heavy Industrial
10 262,400 279,007.59
Separator Machinery Co., Ltd.
Cyclone Baichy Heavy Industrial
11 262,400 279,007.59
Separator Machinery Co., Ltd.
Pressurized
12 Screw AB Innovations 445,280 473,462.28
Conveyor
Pressurized
13 Screw AB Innovations 445,280 473,462.28
Conveyor
Anhui Kaifeng Plastic
14 Cooling Tower 222,640 236,731.14
Machinery Co., Ltd.
Waste Heat Henan Yuanda Boiler
15 524,800 558,015.19
Boiler Corporation Ltd
Waste Heat Henan Yuanda Boiler
16 524,800 558,015.19
Boiler Corporation Ltd
Water Storage Mechatrends Contractors
17 150,000 159,493.67
Tank Corporation
Water Storage Mechatrends Contractors
18 150,000 159,493.67
Tank Corporation
Shandong Shenzhou
Shell and Tube
19 Refrigeration Equipment 104,960 111,603.04
Heat Exchanger
Co., Ltd.
Shandong Shenzhou
Shell and Tube
20 Refrigeration Equipment 104,960 111,603.04
Heat Exchanger
Co., Ltd.
Henan Hongji Mine
21 Boiler 281,850.00 299,688.61
Machinery Co., Ltd.
Henan Hongji Mine
22 Boiler 281,850.00 299,688.61
Machinery Co., Ltd.
Syngas Storage Xinxiang Chengde Global
23 2,200,500 2,339,772.15
Vessel Trading Co., Ltd.
Syngas Storage Xinxiang Chengde Global
24 2,200,500 2,339,772.15
Vessel Trading Co., Ltd.
Total Process Equipment Cost 12,090,880.00 12,856,125.57
B. COST OF AUXILIARIES EQUIPMENT

Cost per Projected Cost
Equipment Manufacturer Equipment per Equipment
(2022), Php (2026), Php

284
MISCELLANEOUS
EQUIPMENT
1 Isuzu Philippines
Cargo Truck (4 units) 1,882,254.00 2,001,384.00
Corporation
2 Minor Raw Materials Truck Mitsubishi Motors
1,048,000.00 1,114,329.11
(2 unit) Philippine Corp.
3 Forklift (1 unit) Schindler Philippines 320,958.00 341,271.80
Total Miscellaneous Equipment Cost 3,251,212.00 3,456,984.91
C. COST OF PIPING SYSTEM
The following tables provide a breakdown of the costs associated with process, water, and
steam piping systems. Pipes (Mayer Steel Pipe Corporation, Par Concrete Pipes), fittings
(Precious Steel), valves (Alibaba), and pumps (Alibaba) are all purchased. Thus, no duty
taxes were listed. In addition, VAT is included in the per-meter or per-unit price.
Table 12.11 Summary of Cost and Projected Cost for Piping System
Projected
Piping Pipe Cost (per m, Total Cost Total Cost
Length (m)/ Piece
System Auxiliaries per piece) (2026)
(2022) Php Php
PROCESS PIPING
PP NO. 1: 9 in (sch 40) 9 939 8,451.00 8,985.87
(Gasifier to Blower 1 8,114.33 8,114.33 8,627.90
Cyclone
Gate valve 1 3,260 3,260.00 3,466.33
Separator)
PP NO. 2: 14 in (sch 40) 12 939 11,268.00 11,981.16
(Cyclone Standard elbow 2 3,877.00 7,754.00 8,244.76
Separator to Gate valve 1 3,260.00 3,260.00 3,466.33
Waste Heat
Blower 1 8,114.33 8,114.33 8,627.90
Boiler)
PP NO. 3: 14 in (sch 40) 12 939 11,268.00 11,981.16
(Waste Heat Standard elbow 2 3,877.00 7,754.00 8,244.76
Boiler to Gate valve 1 3,260.00 3,260.00 3,466.33
Condenser) Blower 1 8,114.33 8,114.33 8,627.90
PP NO. 4: 14 in (sch 40) 13.5 939 12,676.50 13,478.81

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(Char 1 & 2 Standard elbow 2 3,877.00 7,754.00 8,244.76

Silo to Gate valve 1 3,260.00 3,260.00 3,466.33
Fluidized Bed
Blower 1 814.33 814.33 865.87
Reactor)
Total Process Piping Cost 105,122.82 111,776.16
Projected
Piping Length (m)/ Cost (per m, Total Cost
Pipe Auxiliaries Total Cost
System Piece per piece)
(2026) Php
(2022) Php
WATER PIPING
WP NO. 1: 3 in (sch 80) 14 3,600 50,400.00 53,589.87
(Water Storage Standard elbow 5 3,877.00 19,385.00 20,611.90
Tank to Waste Gate valve 1 3,260.00 3,260.00 3,466.33
Heat Boiler) Centrifugal pump 1 38,480 38,480 40,915.44
3 in (sch 80) 14 3,600 50,400.00 53,589.87
WP NO. 2:
Standard elbow 5 3,877.00 19,385.00 20,611.90
(BFW Storage
Gate valve 1 3,260.00 3,260.00 3,466.33
Tank to Boiler)
Centrifugal pump 1 38,480 38,480 40,915.44
Total Water Piping Cost 111,525.00 237,167.08
Projected
Total Cost
Piping Cost (per m, Total Cost
Pipe Auxiliaries Length (m)/ Piece
System per piece) (2026)
(2022) Php
Php
STEAM PIPING
SP NO. 1: 24 in (sch 10) 22 6,100 134,200 142,693.67
(Waste Heat Standard elbow 3 3,877.00 11,631 12,367.14
Boiler to
Gate valve 1 3,260.00 3,260 3466.33
Gasifier)
Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design 286

SP NO. 2: 24 in (sch 10) 22 6,100 134,200 142,693.67

(Boiler to Standard elbow 3 3,877.00 11,631 12,367.14
Gasifier) Gate valve 1 3,260.00 3,260 3466.33
Total Steam Piping Cost 149,091.00 317,054.28
Total Piping System Cost 365,738.82 665,997.52
D. COST OF LAND
The land cost is the total of all costs linked with the acquisition of land required for plant
operation. The site contains the manufacturing area, wastewater treatment facility, building floor
space, and other service amenities.
Table 12.12 provides an overview of the anticipated land area of these facilities.
Facility Land
Dimension (m) Area (m2)
Administration Building (Main Building) 17 x 60 1,020
Production Area 40 x 75 3,000
QA Building 20 x 25 500
Plastic Waste Warehouse 25 x 25 625
Syngas Warehouse 25 x 25 625
Char Warehouse 25 x 25 625
20 x 25 500
Workshop Area
- 2,960
Land Allowance (Walkways, Parking, etc.)
Total 9,855
Area Allotted for Expansion 500
Total Land Area 10,355
The amount of land area of 9,855 square meters is needed for the construction of the
plant. The overall land size needed for the plant site is thus 10,355 square meters provided
additional space of 500 square meters is allotted for the plant's potential future expansion.
The following information was acquired based on the website of Nestoria-Lifull Connect,
which is a collective website that includes all of the listings of available lots for sale around the
nation.

287
PLANT SITE PROPERTY DATA

Cabuyao,
Location
Laguna
Value per sq. m Php 15,000
Land Area 10,355 m2
Php
Market Value
155,325,000.00
The total cost of purchasing the land covers the cost of registration for the transferring of
the property title which includes Documentary Stamp Tax, Transfer Tax and registration fee. The
projected land cost is at year 2026, a year before the purchasing of equipment. It is based on the
purchasing power of peso for the base year of 2022 and for the projected year of 2026 using the
following formula:
PPP2022
Land Cost 2026=Land Cost 2022 x
PPP2026
Where: Purchasing Power of Peso on 2022= 0.84
Purchasing Power of Peso on 2026= 0.79
Table #. summarizes the breakdown of cost of registration for the transferring of land ownership
together with the total projected land cost in the target year, 2026.
Land Area 10355
Selling Price (Php) 155,325,000
Documentary Stamp Tax * (Php) 90,000
Transfer Tax ** (Php) 30,000
Registration Fee *** (Php) 15,000
Total Land Cost (2022) (Php) 155,460,000
Total Projected Land Cost (2026)
165,299,240.51
(Php)
E. COST OF BUILDING

288
The cost of the building is the total of all the costs involved with the construction of the
buildings in the manufacturing plant. This total cost includes not only the cost of the structure
itself but also the cost of the mechanical and electrical systems. The total cost of the building
considers not only the supplies and labor required to create the building structure but also any
specialized tools that may be required. The cost of mechanical and electrical services, as well as
plumbing and fire protection, are all covered by the M & E cost during construction. The cost of
the building as well as the cost of the M&E components are broken down and summarized in the
table 12.13 below.
No. Unit Cost Total Projected

Type of Area Total Cost
Structure of Bldg M&E Unit Total Cost
Building (m2) Php (2022)
Floor Cost Cost Cost Php (2026)
Administrative Office
3 1,020 21,250 9,800 31,050 31,671,000 33,675,493.67
Building Class I
Workshop Area Office
3 500 21,250 9,800 31,050 15,525,000 16,507,594.94
Building Class I
Quality
Office
Assurance 1 500 21,250 9,800 31,050 15,525,000 16,507,594.94
Class I
Building
Syngas Storage Industrial
1 625 12,200 2,950 16,150 10,093,750 10,732,594.94
Warehouse Class
Char Storage Industrial
1 625 12,200 2,950 16,150 10,093,750 10,732,594.94
Warehouse Class
Plastic Waste Industrial
1 625 12,200 2,950 16,150 10,093,750 10,732,594.94
Warehouse Class
Total Building Cost 93,002,250 98,888,468
Note:
1. The construction cost for Office-Class I [Medium/high rise offices, average standard] is
between Php 15,000 and Php 27,500, while the M & E cost ranges between Php 7,900
and Php 11,500.

289
2. The construction cost for Industrial - Class 1 (Industrial units, shell alone (traditional
single storey framed buildings)) is between Php 10,200 and Php 14,200, while the M & E
cost ranges between Php 3,600 and Php 4,400.
PLANT CONSTRUCTION
The overall amount of the capital investment is determined after the purchase of all of the
necessary equipment, pipelines, buildings, and land. It is the total amount that will be invested in
the building of the plant, including both the working capital and the fixed capital. The sum of the
investment in fixed capital plus the investment in working capital is equal to the sum of the total
capital investment.
Total Capital Investment = Fixed Capital Investment + Working Capital

The term "fixed capital investment" refers to the financial outlay required to get a
manufacturing facility up and running. The direct cost, also known as the cost of the material and
labor involved in the actual installation of the facility, which includes the cost of the purchased
equipment, the installation, the piping system, the auxiliaries, the electrical installation, the
buildings, the yard improvement, the service facilities, and the land; and the indirect cost, also
known as the expenses that are not directly involved with the material and labor of the actual
installation of the complete facility, which consists of engineering and supervision during the
construction period.
Fixed Capital Investment (FCI) = Direct Cost + Indirect Cost
On the other hand, working to the total amount of money that is invested in (1) raw
materials and supplies, (2) finished and semi-finished products produced by the operation, (3)
accounts receivable, (4) cash that is kept on hand for capital refers the monthly payment of
expenses, (5) accounts payable, and (6) taxes that are owed by the business. Working capital
accounts for twenty percent of the total capital investment. This is the maximum percentage
allowed by Peters and Timmerhaus in Table 6-17 on page 273 of their book Plant Design and
Economics for Chemical Engineers, thus this is the amount that must be taken into consideration
(5th Ed.)
The assessment of Ethygasyn Inc.'s total capital investment is shown in Table 13.20. The
numbers provided by Peters and Timmerhaus in Table 6-17 on page 273 of the book Plant
Design and Economics for Chemical Engineers served as the basis for the percentages that were
used in the process of determining the fixed capital investment (5th Ed.).

290
Table 12.14. Breakdown of the Total Capital Investment

TOTAL CAPITAL INVESTMENT
Fixed Capital Investment (FCI) Cost in Php
Direct Cost (DC)
Purchased Equipment (PE) 12,856,125.57
Purchased Auxiliaries (PA) 3,456,984.91
Purchased Piping Elements (PP) 1,331,995.05
Installation, Insulation, and Painting (40% of PE) 5,142,450.23
Instrumentation and Process Controls with Installation (19% of PE) 2,442,663.86
Electrical Equipment with Installation (12% of PE) 1,542,735.07
Buildings 98,888,468.35
Land 165,299,240.51
Services facilities and Yard Improvements (75% of PE) 9,642,094.18
Total Direct Cost 300,602,757.72
Indirect Cost (IDC)
Engineering and Supervision (17.5% DC) 52,605,482.60
Construction Expenses and Contractor's Fee (15% DC) 45,090,413.66
Legal Expenses (2% of DC) 6,012,055.15
Contingency (8% DC) 24,048,220.62
Total Indirect Cost 127,756,172.03
Total Fixed Capital Investment (FCI) 428,358,929.75
Working Capital Investment (WCI) Cost in Php
Raw Materials 230,181,265.82
Company Registration 1,080,653.13
Total Working Capital Investment (WCI) 231,261,918.95
TOTAL CAPITAL INVESTMENT (TCI) in Php 659,620,848.70
*Average percentages are used based on Table 6-17 in Plant Design and
Economics, 5th Edition, by Peters and Timmerhaus, p. 273
The total amount of money needed to put Ethygasyn, Inc.’s project into
operation is Php 659,620,848.70.

291
PRODUCTION
Aside from the total capital investment that is needed for the procurement and erection
phase, the total production cost is also determined, which is the sum of the manufacturing cost
and general expenses of the company generated during its operation.
Total Production Cost = Manufacturing Cost + General Expenses
Manufacturing Cost are all expenses from the manufacturing process operation and the
physical equipment needed for the said process. The manufacturing cost is subdivided into three
which are the following:
a. Direct Production Costs, consisting of the costs for raw materials, operating labor,
operating supervision, utilities, maintenance, troubleshooting, operating supplies,
laboratory charges, and patents
b. Fixed Charges, including the depreciation, local taxes, and insurance; and
c. Plant Overhead Costs, which comprise of hospital and medical services, payroll
overhead, shipping and receiving facilities, interplant communication and transportation,
canteen, and recreation facilities expense.
On the other hand, General Expenses includes administrative expenses, distribution,
marketing, and selling expenses, and research and development expenses.
The total production cost needed for the operation of Ethygasyn Inc. amounts to Php
654,560,667.67. The approximate percentages used were based on the average values of the
given range by Peters and Timmerhaus in the Plant Design and Economics for Chemical
Engineers (4th Ed.), pp. 210, summarized in the table.
The total production cost is the sum of manufacturing cost and general expenses. The
breakdown of the total production cost is shown in Table 12.15.

292
Table 12.15. Breakdown of Total Production Cost

TOTAL PRODUCTION COST
Production Cost Cost in Php
MANUFACTURING COST
Direct Production Cost
Operating Labor 15,212,448.66
Direct Supervisory (17.5% of OL) 2,662,178.52
Utilities 521,452,642
Maintenance and Repairs (6% of FCI) 25,701,535.79
Operating Supplies (0.75% of FCI) 3,212,691.97
Laboratory Charges (15% of OL) 2,281,867.30
Patents (3% of TCI) 12,850,768
Total Direct Production Cost 775,659,701.60
Fixed Charges
Depreciation 9,776,866.64
Local Taxes (2.5% of FCI) 10,708,973.24
Insurance (0.7% of FCI) 29,985,125.08
Total Fixed Charges 50,470,964.96
Plant Overhead Cost (10% of TDPC) 77,565,970.16
Total Manufacturing Cost 903,696,636.72
GENERAL EXPENSES
Administrative Cost (4% of TCI) 24,869,006.10
Distribution and Selling Cost (11% of 68,389,766.78
TCI)
Research and Development Cost (5% of 31,086,258
TCI)
Financing (5% of TCI) 31,086,257.63
Total General Expenses 155,431,288.13
TOTAL PRODUCTION COST (Php) 1,059,127,924.8
4
Source: Plant Design and Economics, 4th Edition, by Peters and Timmerhaus (1991), p. 210
Note: OL = Operating Labor Cost, FCI = Fixed Capital Investment TPC = Total
Production Cost, TCI = Total Capital Investment

293
MANUFACTURING COST
I. COST OF RAW MATERIALS
A. Major Raw Material
Since the major raw materials are considered waste, it is purchased at a low price for
packaging purposes. Also, the transportation cost for the collection of the raw material will
be shouldered by Ethygasyn Inc. without getting any compensation from the supplier. The
cost of these raw materials is summarized in Table 12.16.
Table 12.16. Projected Cost of Major Raw Materials
Requirement (kg) Total Projected Total

Raw Php/kg
Source Annual Annual Cost (2026)
Material Daily Yearly (264 (2022)
Cost (2022)
Days)
Polyethylene Waste and
12,500 3,300,000 10 33,000,000 35,088,607.59
Plastic Waste Resources
Management
Incorporated
Total Projected Cost of Major Materials in 2026 35,088,607.59
B. Minor Raw Materials

Ethygasyn Inc. will be receiving the minor raw materials that it requires from Himmel
Industries Inc. Ethygasyn Inc. is going to be liable for paying the charges that are involved
with the transportation of the minor raw material, since it is one of the terms that were
included in the agreement that the company and the supplier came to about the minor raw
materials.
Table 12.17. Projected Cost of Minor Raw Materials
Requirement (kg) Total Projected Total

Raw Php/kg
Source Annual Annual Cost (2026)
Material Daily Yearly (264 (2022)
Cost (2022)
Days)
NiO/Alumina Himmel
7000 1,848,000.00 80 147,840,000 157,196,962.03
Industries Inc.
Total Projected Cost of Major Materials in 2026 157,196,962.03

294
Total Projected Cost of Raw Materials

The total projected cost of both the major and minor raw materials is summarized in
Table 12.18.
Table 12.18. Projected Cost of Minor Raw Materials
Raw Material Total Cost

Major Raw Material 35,088,607.59
Minor Raw Material 157,196,962.03
TOTAL COST 192,285,569.62
Ethygasyn Inc.’s total projected cost for the raw materials equated to ,an amount of Php
192,285,569.62 for the year 2026.

295
II. OPERATING LABOR COST

Operating labor cost is the sum of all wages paid to employees as well as the cost of the employee benefits and payroll taxes
paid by an employer. The cost of labor is divided into direct and indirect costs. Direct costs include wages for the employees
physically making a product while the indirect costs are associated with support labor. Table 12.19 shows the summary of projected
annual operating labor costs.
Annual Employer
EMPLOYEES
Contribution
Total Total Projected
Present Annual 13th
Annual Annual Annual
Salary Night PA Month
Basic Labor Labor Cost
(2022) Differential G- Pay
Salary Cost (2026)
IBIG(3)
Position No. SSS(1) PhilHealth
(2)
Executive Department
1,201,20
Chief Executive Officer 1 90,000 1,080,000 - 19,200 10,800 1,200 90,000 1,392,226.33
0
Executive Secretary 1 21,000 252,000 - 19,200 3,780 1,200 21,000 297,180 344,440.41
Production Department
Plant Manager 1 42,000 504,000 - 19,200 7,560 1,200 42,000 573,960 665,236.62
Production Supervisor 1,2 2 24,000 576,000 - 38,400 8,640 2,400 48,000 673,440 780,536.88
Production Supervisor 3 1 24,000 288,000 28,800 19,200 4,320 1,200 24,000 365,520 423,648.49
Control Room Engineer 1,2 2 23,000 552,000 - 38,400 8,280 2,400 46,000 647,080 749,984.86
Control Room Engineer 3 1 23,000 276,000 27,600 19,200 4,140 1,200 23,000 351,140 406,981.65
Maintenance Engineer 1 23,000 276,000 - 19,200 4,140 1,200 23,000 323,540 374,992.43
Safety/ Pollution Control Engineer 1 21,000 252,000 - 19,200 3,780 1,200 21,000 297,180 344,440.41

296
Process Operators 1,2,3,4,5 5 12,000 720,000 - 57,600 10,800 6,000 60,000 854,400 990,274.87
Process Operators 1 1 12,000 144,000 14,400 11,520 2,160 1,200 12,000 185,280 214,745.00
Production Personnel 1,2,3,4,5 5 9,500 570,000 - 45,600 9,000 6,000 47,500 678,100 785,937.96
Production Personnel 6 1 9,500 114,000 11,400 9,120 1,800 1,200 9,500 147,020 170,400.53
Warehouse Personnel 1,2,3 3 9,500 342,000 - 27,360 5,400 3,600 28,500 406,860 471,562.77
Warehouse Personnel 4 1 9,500 114,000 11,400 9,120 1,800 1,200 9,500 147,020 170,400.53
Quality Assurance Department
Quality Assurance Head 1 22,000 264,000 - 19,200 3,960 1,200 22,000 310,360 359,716.42
Laboratory Analyst 1,2 2 17,000 408,000 - 32,640 6,120 2,400 34,000 483,160 559,996.73
Research and Development (R&D) Department
R&D Head 1 27,000 324,000 - 19,200 4,860 1,200 27,000 376,260 436,096.47
R&D Staff 1 17,000 204,000 - 16,320 3,060 1,200 17,000 241,580 279,998.37
Finance Department
Finance Manager 1 40,000 480,000 - 19,200 7,200 1,200 40,000 547,600 634,684.60
Accountant 1 19,000 228,000 - 18,240 3,420 1,200 19,000 269,860 312,775.72
Purchasing Officer 1 18,000 216,000 - 17,280 3,240 1,200 18,000 255,720 296,387.04
Auditor/ Payroll Clerk 1 16,000 384,000 - 30,720 5,760 2,400 32,000 454,880 527,219.37
Human Resources Department
Human Resources Manager 1 27,000 324,000 - 19,200 4,860 1,200 27,000 376,260 436,096.47
Human Resources Representative 1 17,000 408,000 - 32,640 6,120 2,400 34,000 483,160 559,996.73
Company Nurse 1 15,000 180,000 - 14,400 2,700 1,200 15,000 213,300 247,221.01
Security Staff 1,2 2 9,500 228,000 - 18,240 3,600 2,400 19,000 271,240 314,375.18
114,00 1,8
Security Staff 3 1 9,500 11,400 9,120 1,200 9,500 147,020 170,400.53
0 00
360,00 5,4
Company Driver 3 10,000 - 28,800 3,600 30,000 427,800 495,832.85
0 00
342,00 5,4
Utility Personnel 1,2 2 9,500 - 27,360 3,600 28,500 406,860 471,562.77
0 00
114,00 1,8
Utility Personnel 3 1 9,500 11,400 9,120 1,200 9,500 147,020 170,400.53
0 00

297
Supply Chain Management Department

288,00 4,3
Marketing & Sales Manager 1 24,000 - 19,200 1,200 24,000 336,720 390,268.44
0 20
Customer Service & Sales 192,00 2,8
1 16,000 - 15,360 1,200 16,000 227,440 263,609.69
Representative 0 80
Projected Labor
Total Number of Employees 50 15,212,448.66
Cost
Notes:
1) According to SSS Contribution Table for Year 2022
2) According to PhilHealth Contribution Table for Year 2022
3) According to PAG-IBIG Contribution Table for Year 2022
The current annual pay of each position was utilized in the calculation of the annual compensation for each post, as can be seen in
Table 12.19. When doing the calculation, we considered the amount of persons who were given responsibility for each role. After
adding employee benefits such as SSS, PhilHealth, PAG-IBIG, and 13th Month Pay to the annual salary of each position, we were
able to calculate the total annual labor cost for each position. We then used the indices of compensation for 2022 and 2026 to project
what the annual labor cost will be in the year 2026. As a result, the total number of workers and the total operational labor cost are
both 50 individuals and Php 15,212,448.66 correspondingly.

298
III. DEPRECIATION COST

Depreciation, as a non-cash expense, is a reduction in the value of an asset with the passage
of time, due in particular to wear and tear. Some of the fixed assets such as machinery and
equipment are depreciated in terms of its value for some time since as most assets age, they
decline in value.
From Peters and Timmerhaus (1991), p. 271, the estimated economic or service life of
manufacturing equipment is 12 years. Furthermore, according to Federal tax regulations, ten (10)
percent of the initial value (V) is the scrap value (Vs), and depreciable year (a) of 10 years, the
unit and total annual purchased equipment depreciation are summarized in Table 12.20.
Straight Line Method
From Peters and Timmerhaus (1991), p. 278, in the straight-line method for determining
depreciation, it is assumed that the value of the property decreases linearly with time. Equal
amounts are charged for depreciation each year throughout the entire service life of the property.
The annual depreciation cost may be expressed in equation form as follows:
V −V s
d=
n
Where:
d = Depreciation per year,
V = Cost of Equipment,
Vs=Salvage Value,
n = Economic Life
Sample Calculation:
72,303.80−(0.1 x 72,303.80)
d (PE Waste)=
12
d (PE Waste)=Php 5,422.79/ year

299
Table 12.20. Summary of Depreciation of Equipment
Projected Total Cost Per

Equipment Straight Line Method
Equipment (2026)
1 Polyethylene Waste Silo 72,303.80 5,422.79
2 Screw Conveyor 1 31,675.44 2,375.66
3 Screw Conveyor 1 31,675.44 2,375.66
4 Screw Conveyor 2 31,676.44 2,375.73
5 Screw Conveyor 2 31,676.44 2,375.73
6 Industrial Shredder 555,908.86 41,693.16
7 Pressurized Screw Conveyor 445,280 473,462.28
8 Pressurized Screw Conveyor 445,280 473,462.28
Multi Tubular Fixed Bed

9 1,674,045.57 125,553.42
Reactor
Multi Tubular Fixed Bed

10 1,674,045.57 125,553.42
Reactor
11 Char 1 Silo 72,303.80 5,422.79
12 Cyclone Separator 279,007.59 20,925.57
13 Cyclone Separator 279,007.59 20,925.57
14 Waste Heat Boiler 558,015.19 41,851.14
15 Waste Heat Boiler 558,015.19 41,851.14
16 Water Storage Tank 159,493.67 11,962.03
17 Water Storage Tank 159,493.67 11,962.03

18 Boiler 281,850.00 299,688.61

300
19 Boiler 281,850.00 299,688.61

Shell and Tube Heat
20 111,603.04 8,370.23
Exchanger
Shell and Tube Heat
21 111,603.04 8,370.23
Exchanger
22 Syngas Storage Vessel 390,610.63 29,295.80
23 Cooling Tower 222,640 16,698.00
24 Syngas Storage Vessel 390,610.63 29,295.80
25 Cargo Truck (4 units) 2,001,384 150,103.80
Minor Raw Materials Truck

26 1,114,329.11 83,574.68
(2 unit)
27 Forklifts (1 unit) 341,271.80 25,595.39
TOTAL 12,306,656.51 2,360,231.51
Table 12.21. Summary of Depreciation of Buildings
Type of Projected Total Cost Php

Structure Depreciation
Building (2026)
2,525,662.02
Administrative Building Office Class I
33,675,493.67 5
Workshop Area Building Office Class I 16,507,594.94 1,238,069.62
Quality Assurance Building Office Class I 16,507,594.94 1,238,069.62
Syngas Storage Warehouse Industrial Class 10,732,594.94 804,944.6203
Char Storage Warehouse Industrial Class 10,732,594.94 804,944.6203
Plastic Waste Warehouse Industrial Class 10,732,594.94 804,944.6203
7,416,635.12
TOTAL
98,888,468.35 7
The chosen method in determining the annual depreciation of the equipment and
buildings is Straight Line Method since it yields the maximum cost for annual depreciation with
an amount of PHP 622,622.63. Choosing the maximum cost for annual depreciation can cover all
the possible amount of annual depreciation that may happen.

301
ANNUAL SALES
Price determination for many consumer products is often a function of the cost of
Production or expenses in producing the selling products. For a starting manufacturing plant like
Ethygasyn Inc., it is expected to sell 70% of its annual capacity of 53,713,836.20 kg, and in
terms of its energy content, the annual capacity is 7.08 x 1011 MJ on its starting year. The
remaining 30%, called as unsold goods, was considered as the company’s finished goods
inventory that is added to succeeding year sales.
A. Estimation of Selling Price
The price at which the product will be sold is needed to be able to project how much
the company will be selling its product that is both reasonable to consumers and will result to
profit gain for the plant. For estimation of the selling price, the equation below will be used:
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑆𝑎𝑙𝑒 > 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝑷𝒓𝒊𝒄𝒆 × 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑩𝒐𝒂𝒓𝒅𝒔 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓 × %𝑺𝒂𝒍𝒆𝒔 > 𝑻𝒐𝒕𝒂𝒍

𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑪𝒐𝒔𝒕
Calculating for the selling price of syngas,

Production Cost for Syngas
Selling Price>
Rated Plant Capacity x %Sales
1,059,127,924.84
Selling Price>
53,713,816.20 x 0.70
Selling Price> Php28.17 /kg
Or
Selling Price> Php0.0022 /MJ in terms of its energy content
Syngas in terms of its energy content, the selling price would be Php 0.0022/MJ. Thus,
the actual selling price of syngas is Php29.00/MJ. The price of the product is reasonable enough
to cover the overall cost of expenses of the company and for the company to gain profit.

302
Moreover, it is also appealing to the consumers since it is priced averagely as to what is currently
being offered in the market.
Moreover, the char from the gasifier and cyclone separator will be sold instead of just disposing
it into landfills. This is due to gain more profit to which companies use char for alternative
purposes. The actual selling price of char is Php 21.00/kg
B. Annual Sales
The total annual sales of the company are computed by multiplying the capacity of the
plant by the selling price of the product. As a starting company, it is assumed that only 70% of
the produced syngas and char is sold. The total annual sales of the company for the syngas and
char is Php 1,250,189,537.56.
C. Inventory
The remaining 30% in the production will be treated as additional inventory that will be sold
on the following year. The total inventory for the syngas and char is 20,142,688.58
Table 12.22. Summary of Annual Sales
Syngas
Total Production 1,059,127,924.
Cost (TPC) 84
Rated Plant 53,713,836.

Capacity (RPC) 20
Sales 70%
Computed Selling 28.16853161

Price per MJ
29.00
Actual Selling Price
per MJ
Annual Sales 1,090,390,874.86

303
FINANCIAL STATEMENT
The company's financial performance, financial position, and cash flows are all reported
in the company's financial statements, which are a collection of reports. These statements are
made with the intention of conveying financial information to investors, potential investors,
analysts, and any other parties who may be interested in the most plain and concise manner
feasible. In addition, these are essential because they allow one to do the following: (1) evaluate
a company's capacity to generate cash, as well as the sources and uses of that cash; (2) evaluate a
company's ability to repay its debts; (3) monitor a company's financial results on a trend line in
order to identify any impending problems with profitability; (4) calculate financial ratios from a
company's financial statements that can provide insight into the state of the company; and (5)
investigate the specifics of particular business transactions.
I. Income Statement
The income statement, which may also be referred to as a statement of comprehensive
income, statement of revenue and expenditure, or profit and loss report, is a financial document
that summarizes the income, expenses, and profits of a business for a certain time period. This
statement, which offers information on the operations of the firm and contains the sales as well
as the different costs that were incurred during the time specified in the table, may be found in
Table 13.39. The firm's operations for the next year will be financed via the utilization of the net
income or money gained during the given year, which will serve as the new budget for the
company.
Table 12.23. Income Statement
Income Statement
(As of 2027)
Direct Production Cost
Operating Labor 15,212,448.66
Direct Supervisory 2,662,178.52
Utilities 521,452,642
Maintenance and Repair 25,701,535.79
Operating Supplies 3,212,691.97
Laboratory Charges 2,281,867.30
Patents 12,850,768
Total Direct Cost 775,659,701.60

304
Depreciation 9,776,866.64
Local Taxes 10,708,973.24
Insurance 29,985,125.08
Total Fixed Charges 50,470,964.96
Plant Overhead Cost 77,565,970.16
Total Manufacturing Cost 903,696,636.72
General Expenses
Administrative Cost 24,869,006.10
Distribution and Selling Cost 68,389,766.78
Research and Development Cost 31,086,258
Financing 31,086,257.63
Total General Expenses 155,431,288.13
TOTAL PRODUCTION COST 1,059,127,924.84
TOTAL SALES 1,287,789,222.90
GROSS PROFIT 228,661,298.05
Income Tax (30%) 68,598,389.42
Income After Tax 160,062,908.64
Dividend (7%) 11,204,403.60
NET INCOME 148,858,505.03
Analysis of the Income Statement

The income statement of Ethygasyn Inc. for year 2027 shows the earnings of the
company and as well as its expenses for the whole year. The net operating income is calculated
as the sum of total annual sales subtracted by the costs of goods sold, expenses, and taxes. The
net income of the company is Php 148,858,505.03 from its annual sales of Php
1,287,789,222.90.
Payout Period
The payout period, also known as payout time, is the minimum amount of time that is
theoretically required to recover the initial capital investment made in the form of cash flow to
the project. This is determined by taking the total income and subtracting all costs, with
depreciation being the only cost not considered. According to Granger et al. (2000), The Best
Test Preparation & Review Course FE/EIT Fundamentals of Engineering/engineer-in-training,
the following formula will be used:
Total Investment
Payout Period=
Ave . Profit per Annum
621,725,152.50
Payout Period=
70,534,392.23
Payout Period=8.8145 years

305
Thus, the payout period in order to recover the initial capital investment is estimated to 8.81
years.
Rate of Return
A gain or loss on an investment over a predetermined time period is referred to as the
Rate of Return (ROR), which is also known as Return of Investment. This gain or loss is stated
as a percentage increase over the original cost of the investment. Any income received plus any
capital gains gained on the sale of the investment is counted as gain on the investment. Gains on
investments are regarded to be gains on investments. The rate of return, often known as ROR, is
calculated as an annual percentage of the initial investment. It is calculated by taking the annual
profit before taxes, dividing that number by the entire original investment required, and then
multiplying that number by 100. To calculate the rate of return on investment both before and
after considering the effects of income tax, the following formula will be employed.
1
ROI=
Payout Period
1
ROI =
8.8145
ROI=0.1134
ROI=11.3 4%
Net Present Value and Internal Rate of Return

Table 12.24. Syngas Annual Production for NPV and IRR
Syngas
Year 0 1 2 3 4
Annual
53,713,836.20 53,713,836.20 53,713,836.20 53,713,836.20
Production
Total
number of 53,713,836.20 69,827,987.06 74,662,232.32 76,112,505.90
products
Amount of
products 37,599,685.34 48,879,590.94 52,263,562.62 53,278,754.13
sold
Inventory 16,114,150.86 20,948,396.12 22,398,669.70 22,833,751.77
Annual 1,090,390,874.8
1,417,508,137.32 1,515,643,316.06 1,545,083,869.68
Sales 6

306
Selling
29 Php
Price
Annual
53,713,836.20
Production
Percent
0.7
Sales
Table 12.25. Char Annual Production for NPV and IRR
Char
Year 0 1 2 3 4
Annual 13,428,459.05 10,742,767.24 10,742,767.24 10,742,767.24
Production
Total 13,428,459.05 14,771,304.96 15,174,158.73 15,295,014.86
number of
products
Amount of 9,399,921.34 10,339,913.47 10,621,911.11 10,706,510.40
products
sold
Inventory 4,028,537.72 4,431,391.49 4,552,247.62 4,588,504.46
Annual 197,398,348.04 217,138,182.84 223,060,133.28 224,836,718.41
Sales
Selling
21 Php
Price
Annual
13,428,459.05
Production
Percent
0.7
Sales
Table 12.26. Summary of Syngas and Char Calculation for NPV and IRR
Syngas and Char
Year 0 1 2 3 4
Annual
Sales 1,287,789,222. 1,634,646,320. 1,738,703,449. 1,769,920,588.
90 16 33 09
TPC
1,059,127,924. 1,059,127,924. 1,059,127,924. 1,059,127,924.
307
84 84 84 84
Income
Before 228,661,298.0 575,518,395.3 679,575,524.4 710,792,663.2
Tax 5 1 9 5
Income
After Tax 160,062,908.6 402,862,876.7 475,702,867.1 497,554,864.2
4 2 4 7
Net
Income(7 148,858,505.0 374,662,475.3 442,403,666.4 462,726,023.7
% 3 5 4 7
dividend)
PV -
621,725,152. 78,346,581.60 103,784,619.2 64,499,732.68 35,506,635.44
50 1
Average
70,534,392.23
PV
Total
Capital
621,725,152.50
Investme
nt
NPV 339,587,583.57
IRR 28%
Payback
8.814496486
Period
ROI 0.113449
ROI 11.34%

308

309
XII. HEALTH, SAFETY

AND
ENVIRONMENTAL
CONSIDERATIONS

310
HEALTH, SAFETY AND ENVIRONMENTAL CONSIDERATIONS
A. IMPLEMENT SAFETY AND HEALTH PROGRAMS

RECOMMENDED PRACTICES
Based on the seven key characteristics of a successful program, the
Recommended Practices give a step-by-step plan for developing a safety and health
program. The fundamental goal of workplace safety and health programs is to prevent
workplace injuries, illnesses, and deaths, as well as the financial hardships that these
events can cause for employees, their families, and employers. The proposed approaches
in the plant take a proactive approach to worker safety and health management. This
program can provide the following advantages:
 Avoid industrial injuries and illnesses.
 Increase compliance with laws and regulations.
 Avoid the indirect costs associated with workplace mishaps.
 Boost staff motivation.
 Improve your social responsibility goals.
 Improve the overall efficiency and productivity of the company.
According to the Occupational Safety and Health Association (OSHA), the
following are the seven important features of the program:
i. Management Leadership
Management provides the vision, guidance, and resources needed
to implement an effective safety and health program. Management will be
in charge of developing and disseminating safety regulations to all parties
involved, particularly supervisors, workers, and site personnel. The
following policies will be enforced:
 Personal Protective Equipment (PPE) is required
 Emergency drills and a plan of action

311
 Each piece of equipment and material handled has its own

set of safety standards.
These policies will be expanded upon later, as this section merely
provides a high-level overview of the program's structure.
ii. Worker Engagement

Managers and supervisors will be held to strict health and safety
rules in order to function as role models and encourage worker
engagement. Employees will be encouraged to raise concerns about health
and safety, as well as report injuries and potential risks, through an open-
door policy. A weekly meeting with the staff, supervisors, managers, and
employees will be held to begin a conversation about the current situation
of the plant in terms of health and safety.
iii. Identification and Assessment of Hazards
An authorized party should inspect and test the plant on a regular
basis to ensure that the activities and equipment are still safe. During the
inspection, the working conditions and the adequacy of safety measures in
each component of the plant in relation to the hazards present should be
assessed and verified. The findings must be presented to management so
that they may determine whether policy adjustments are required or
whether new policies must be created and implemented.
iv. Hazard Control and Prevention
Supervisors and managers will enable conversation with
employees in a weekly meeting to review OSHA regulations and
recommendations, as well as other safety measures or practices. After that,
input from the workers will be obtained regarding their proposals for
improving the plant's control. Controls that were found to be practical and
effective will be tested and approved before being implemented in the real
world.

312
v. Education and Training

Employee and management education and training are key
instruments for teaching them about workplace dangers and controls so
they may function more safely and efficiently. Another goal of education
and training is to provide employees and managers a better understanding
of the safety and health program so that they can help create and
implement it. Additional training may be required depending on the
responsibilities assigned to managers, supervisors, and workers. For
example, employers, managers, and supervisors may need specialized
training to ensure that they can effectively lead, direct, and offer resources
for the safety and health program. Workers, on the other hand, will receive
instruction on how to operate the equipment safely.
vi. Evaluation and Improvement of Programs
Following the creation of a safety and health program, it should be
evaluated to ensure that it is being followed correctly. Managers should
then take a step back and evaluate the program every month to assess what
is working and what isn't, as well as if it is on track to accomplish its goal.
The performance and progress of the program will be monitored using
both lagging and leading indicators. Worker exposures and injuries that
have already happened are reflected by lagging indicators. Leading
indicators, on the other hand, assess the program's implementation
success. Furthermore, it emphasizes efforts or procedures taken to avoid
accidents or illnesses in the first place.
The following are the lagging indicators:
 The frequency and severity of injuries and diseases
 Information on workers' compensation
The following are the leading indicators:

313
 Participation of employees in program activities

 Involvement of people in the program
 The amount of dangers, near-misses, and first-aid incidents
reported
 Time spent responding to reports
 The number and type of hazards found during inspections
 Employees who have successfully completed the required
safety and health training
The number of indicators listed here may grow depending on the
state of the plant and how well the indicators reflect program performance
and progress.
vii. Communication and Coordination for Host Employers, Contractors,
and Staffing Agencies
This section of the program guarantees that not only plant
personnel, but also contractors, staffing agencies, and their employees are
aware. In order to stay safe, it is necessary to allow excellent
communication and collaboration.
Each host employer creates and implements a procedure to ensure
the exchange of information about hazards on the job site and the safety
measures in place. As a result, everyone on the project is aware of
potential hazards as well as the strategies and procedures for avoiding
them. In order to detect and manage any difficulties or conflicts that may
compromise safety or health, host employers, contractors, and staffing
agencies coordinate on work planning, scheduling, and addressing
program variances.

314
B. WEARING OF PERSONAL PROTECTIVE EQUIPMENT (PPE)

Plant workers will need to wear personal protective equipment at all times to
safeguard their safety. Personal protective equipment is chosen to guard against any
potential or anticipated threats.
i. Head Protection
To avoid potential damage from falling objects, head protection is
required. Hard helmets, in particular, must be worn by workers at all times
when handling materials and operating machinery. Class G hard helmets
will be worn to offer resistance to impact and penetration. Workers may
be injured if tools or materials are mishandled, especially since the plant
has varying heights. There are currently no electrical dangers in the plant.
As a result, general-purpose Class G hard helmets are used.
Figure 12.1: Class G Hard Hat
ii. Eye and Face Protection

When exposed to flying particles, molten metal, liquid chemicals,
acids or caustic liquids, chemical fumes or vapors, or potentially harmful
light radiation, eye and facial protection is extremely important. Because
face shields are insufficient for safety, both eye and face protection will be
worn.

315
Figure 12.2: Eye and Face Protection
iii. Body and Hand Protection

When there is a risk of skin absorption of harmful substances,
serious cuts or lacerations, severe abrasions, punctures, chemical burns,
thermal burns, harmful temperature extremes, and sharp objects, body and
hand protection is worn. Workers at the company's syngas plant are
required to wear body and hand protection to avoid harm from chemical
exposure. Long sleeves to cover the arms are part of the body protection.
Gloves are worn to protect the hands in addition to the body.

316
Figure 12.3: Body and Hand Protection

iv. Respiratory Protection
Each employee must be furnished with a respirator when working

near or around the reactor. This is due to the gases emitted by the reactor;
in the event of pipe leaks, workers may inhale dangerous fumes. As a
result, respiratory protection is necessary.
Figure 12.4: Respiratory Protection
v. Foot Protection
When working in situations where falling or rolling objects, or
things piercing the sole, or when the use of protective footwear will
protect the afflicted employee from an electrical hazard, such as a static-
discharge or electric-shock hazard, foot protection is worn. Employees in
the syngas facility, in particular, must wear protective boots in the event
that tools or materials are mishandled.

317
Figure 12.5: Foot Protection
C. EMERGENCY ACTION PLAN AND SAFETY TRAINING
All on-site staff must be trained in Accident Investigation Procedures by the

Process and Safety Engineer. According to Philippine legislation, all individuals who
work with or are exposed to hazardous materials must receive Hazard Communication
training. All new hires are required to complete First-Aid training with the Philippine Red
Cross. Following that, personnel will conduct training every six months to help retain the
practice.
Quarterly earthquake and fire exercises will be held in March, June, September,
and November, respectively. In addition, all staff will be trained about how to use fire
extinguishers and where the fire exits are located. Every floor of the building will also
have a map of the facility. Everyone should pack a go bag with necessities such as
canned food, medications, flashlights, whistles, water, and additional clothing.
Additionally, emergency numbers will be printed on their identification cards. All
structures will be built in accordance with the Philippine National Building Code, with
emergency alarms, emergency exits, emergency lights, and fire extinguishers installed in
their respective locations.
In the event of a fire, emergency switches will sound an alarm and alert the
emergency response team. Everyone should follow the drills to the point.

318
D. SAFETY RULES AND REGULATIONS FOR EACH EQUIPMENT

AND MATERIALS HANDLED
i. Machine Guarding and Lock-out/Tag-out (LOTO) Systems

Moving machine parts can inflict crushed fingers or hands, amputations,
burns, or blindness, among other industrial risks. Workers require measures to
protect them from possible injuries. Machine guarding systems are required for
any machine component, function, or process that has the potential to cause
injury. As a result, machine guarding will be installed on rotating equipment to
prevent injury from contact with revolving parts. To avoid unnecessary contact
with the equipment, the area around the reactor will be enclosed as a sort of
machine guarding.
LOTO is a safety procedure that assures that dangerous equipment is
safely shut down and cannot be restarted until maintenance or repair work is done.
This prevents the equipment from being started accidently while in a dangerous
state or when a worker is in close proximity to it.
ii. Equipment Operation and Handling of Materials
The following procedures should be taken to safeguard the safety of the
workers when the plant is in operation. This involves the preparation for over-
pressurization and draining, as well as how to handle materials and emissions.
Table 12.1: Safety and Regulations for the Equipment
EQUIPMENT SAFETY AND REGULATIONS

GASIFIER The finest gasifier systems run at negative pressure (suction
gasifiers) such that leaks result in air being sucked into the system
(potentially creating gas explosions, which the equipment should be
equipped to manage safely) rather than CO being released into the
environment. The complete system should be leak-tested before

319
installation and then every time the engine is serviced. Generators

should be utilized outside if possible, with proper ventilation.
Excess CO levels in the ambient air can be measured and signaled
using alarms. These safety procedures should be followed and
enforced to safeguard everyone who is at risk of inhaling gas.
CYCLONE State and municipal codes must be followed during installation and
SEPARATOR operations. A qualified installer must complete the installation. The
Ash Extraction System may not be used by anyone who is
unfamiliar with it or has not been taught to do so. The Cyclone
Separator should only be operated by responsible adults. Damage to
the Cyclone Separator may occur if it is not utilized properly, and
the warranty may be void. If there are apparent damages, the
operation cannot be continued or restarted. The Cyclone must only
be used in accordance with the planning, assembly, laws, statutes,
and product-related instructions. The manufacturer is not
responsible for any damages or their consequences that arise as a
result of faulty assembly, operation, application, or maintenance and
cleaning.
WASTE HEAT Each boiler must be inspected internally and externally by the plant
BOILERS management at the time of installation and at regular intervals
thereafter. If the inspector believes that the boiler is in a hazardous
condition, it may approve an examination at any reasonable time.
The plant may adopt and enforce standards for the construction,
inspection, installation, use, maintenance, repair, alteration, and
operation of boilers in conformity with standard boiler usage. If an
examination reveals that a boiler is unsafe, the inspector must issue
a written preliminary order requiring the boiler to be repaired and
altered as needed to make it safe to use. The inspector may also
order that the boiler be turned off until the repairs and adjustments

320
are completed or the dangerous circumstances are corrected.

CONDENSER Before beginning the process, inspect the condenser for leaks and
damage. When handling other combustible items, avoid
approaching the machine. Workers should constantly wear their
PPE during operations. Before doing maintenance, follow proper
lockout/tagout procedures.
E. OTHER SAFETY CONSIDERATIONS
i. Installation of CCTV
The significance of effective staff security measures was emphasized.
They make sure that when people enter the facilities, they feel safe. Security
guards are stationed at the entrances and exits of the company. Furthermore, the
entire plant was equipped with trustworthy Closed-Circuit Television (CCTV).
This serves as a reference for any plant-related accidents or events.
ii. Pedestrian Safety

Pedestrian Safety is also introduced to ensure the safety of those inside the
factory. Taking this into consideration, pedestrian lanes have been designated on
the plant's roads. Inside the factory, there are additional indications that direct
people to specific areas.
iii. Workplace Safety Signs
When it comes to safety, safety signs are just as vital as physical training.
Both the machinery and the plant area have safety indicators such as "caution" or
"danger." This signage will alert employees and visitors to the dangers that
present around the plant.

321

322
XIII. SOLID
WASTE AND
WASTEWATER
MANAGEMENT

323
SOLID WASTE MANAGEMENT

INTRODUCTION
The Ethygasyn Inc. produces syngas from thermochemical processing of waste plastic.
The production of synthesis gas does not mainly involve processes that produce vast amounts of
wastewater, as the wastes come from the discharge from gasification and separation. Thus, a
solid waste management would be imposed for the proper management of char discharge from
the equipment such as the gasifier and the cyclone separator.
Char is the more refined component of the solid residuals produced by the gasifier. It is
made up of unreacted carbon and varying proportions of ash which is siliceous. It is possible to
recycle it back into the gasifier to enhance the amount of carbon that is utilized, and it has also
been employed as an additional fuel source for the burning of pulverized coal. The irregularly
shaped particles have a pore structure that is well defined, and they offer a great deal of promise
for use both as an adsorbent and as a precursor to activated carbon.
The disposal of char, which may constitute 5–10 percent of the original mass of the
feedstock, is an important facet of the management of current gasification plants. Char can be
generated as a by-product of gasification. At this time, char needs to be handled in the same
manner as rubbish, which represents a real loss for the owners of the company. However, further
research on char's features is required before it can be used effectively in any applications.
OBJECTIVES OF THE SOLID WASTE MANAGEMENT
General Objective
To create a solid waste management for the generation of syngas by thermochemical

processing of waste plastic, with char discharge that complies with the existing environmental
criteria needed by the local government.
Specific Objectives
 To determine the properties of char discharge from gasifier and cyclone separator prior to
proper solid waste management.

324
 To determine the applications of the char discharge for efficient solid waste management.
PROCESS OF SOLID WASTE MANAGEMENT
Collection of Char
The discharged solid residuals from the gasification process and the separation process
are the two processes that contribute to the production of char. The amount of char that is
generated for each batch is 479.838 kg every two days. Before being characterized, the char that
is produced will be collected once every seven days at a total weight of 1,679.433 kg. Thus, a
fraction of 10% will be used for the analysis of char.
Characterization of Char
The Micromeritics, Gemini equipment will be used to measure the Brunauer–Emmett–

Teller (BET) surface area of the char. An FEI XL30 ESEM equipped with energy dispersive X-
ray spectrometry (ESEM/EDX) will be used in order to conduct an investigation of the char's
structural properties as well as its chemical properties. In addition, proximate and elemental
analysis will be used in order to complete the char characterization process. Table 13.1 is based
on the literature from Dias D., et al. (2017) which shows the parameters for the proximate and
elemental analysis of char from the gasifier and cyclone separator.
Table 13.1: Proximate analysis and elemental analysis of chars from gasifier and cyclone
equipment
Source: https://doi.org/10.1016/j.wasman.2017.04.011

325
Applications of Char
It is desired to cut down on the generation of char because any carbon that is present in
the char is removed from the total carbon output of the system. This is because the gas phase
may be employed as a source of energy or as a starting point for the synthesis of other fuels.
Whereas remaining char is often combusted, it is necessary to contrast the value of the char as a
catalyst with the value of the fuel it would provide if it were simply combusted.
The char that is produced as a by-product of gasification and cyclone separation is still
regarded as waste, and the disposal of this waste comes with significant environmental and
economic consequences. Char, on the other hand, has the potential to be further valorized in a
variety of applications owing to the exceptional qualities that it has.
WASTEWATER MANAGEMENT
INTRODUCTION
Syngas is created by the Ethygasyn Inc. by thermochemically converting waste plastic.

Synthesis gas generation does not primarily require operations that generate large volumes of
wastewater; rather, wastewater is only generated during the washing of waste plastic. Therefore,
it can be considered as Municipal wastewater.
Municipal wastewater is characterized as a combination of water from precipitation

and wastewater from both industrial and domestic sources. Before being released into naturally
flowing rivers, municipal wastewater treatment facilities clean 96% of precipitation waters.
Wastewater contamination is primarily caused by cleaning water that has been contaminated
with bacteria, viruses, washing and cleaning products, including soil. These contaminants can be
almost entirely broken down rather easily.
For the sake of clean water and public health, home sewage and wastewater must be
collected and treated. It is one of the most significant elements that contribute to the general state
of good health. Sewers transport wastewater and sewage from residences, places of business, and
industry to wastewater treatment facilities for processing before being released into bodies of
water or land or recycled.
326
OBJECTIVES OF WASTEWATER MANAGEMENT
General Objective
To develop a municipal wastewater management system that conforms with the

required environmental standards by the local government for the generation of syngas through
the thermochemical processing of waste plastic.
Specific Objective
 To characterize the wastewater coming from washing the waste plastic to be considered
as municipal wastewater.
PROCESS OF WASTEWATER MANAGEMENT
The wastewater produced as a result of washing the used plastic waste is discharged.
As long as it fits the description of municipal wastewater, this can be registered with the local
government to be taken into account as municipal wastewater.
Characteristics of Municipal Wastewater
99.9% of municipal wastewater is made up of water, with very tiny amounts of

dissolved and suspended organic and inorganic particles. Sewage contains a variety of natural
and manufactured organic compounds from the process industries, as well as carbohydrates,
lignin, lipids, soaps, synthetic detergents, proteins and their breakdown products. Table 13.2
shows the characteristics of Municipal wastewater.

327
Table 13.2: Characteristics of Municipal Wastewater
Registration of Municipal Wastewater
A plant that registers with the local government is permitted to either discharge or use
recovered water in line with the regulations or release municipal wastewater to groundwater.
This law applies to all discharges to the ground and to water from sewerage systems that serve
buildings on one or more parcels, strata lots, or common interests, and if the discharge is equal to
or greater than the maximum daily flows of 22.7 m3/d.
Collection Systems
Municipalities have always employed one of two main categories of sewage systems.
 Combined Sewers
In a single-pipe system, combined sewers are made to collect both sanitary
sewage and stormwater runoff. In dry weather, these systems were created to transport

328
sewage and wastewater to a treatment facility. These combined sewer systems would
overflow during rainy weather since so much stormwater would be entering the system.
Since the first part of the 20th century, state and local authorities have largely prohibited
the building of new combined sewers.
 Separate Sanitary Sewers

Sanitary sewers are the other main domestic sewer design type (also known as
separate sanitary sewers). Sanitary sewers are solely set up to collect wastewater; they
don't offer extensive drainage for the significant runoff during precipitation events. In
order to account for greater flows that happen when too much water enters the collection
system during storm events, sanitary sewers are often built with some buffer space.

329
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10.1016/j.ijhydene.2016.11.093.
Eppinger, T. & Aglave, Ravindra. (2021). Bridging the gaps: from particle-resolved to multi-
tubular reactor simulation. 2021. 10.3303/CET2186141.
Erkiaga, Aitziber & Lopez, Gartzen & Amutio, Maider & Bilbao, Javier & Olazar, Martin.
(2014). Syngas from steam gasification of polyethylene in a conical spouted bed
reactor. Fuel. 109. 461–469. 10.1016/j.fuel.2013.03.022.
He, Maoyun & Xiao, Bo & Hu, Zhiquan & Liu, Shiming & Guo, Xianjun & Luo, Siyi. (2009).
Syngas production from catalytic gasification of waste polyethylene: Influence of
temperature on gas yield and composition. International Journal of Hydrogen Energy -
INT J HYDROGEN ENERG. 34. 1342-1348. 10.1016/j.ijhydene.2008.12.023.
Heidenreich, S., Pier M. M., & Foscolo U. (2016). Advanced Biomass Gasification, Elsevier
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Himmelblau, D. M., & Riggs, J. B. (2012). Basic principles and calculations in chemical
engineering, eight ed. Pearson.
Himmelblau, D. M., & Riggs, J. B. (2016). Basic principles and calculations in Chemical
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Kern D.Q. (1950). Process Heat Transfer. Institute of Technology. McGraw Hill international
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Levenspiel, O. (1998). Chemical Reaction Engineering (3rd ed.). John Wiley & Sons.
Muhammad, Waqas & Pathan, Ashfaque & M Safar, Korai & Dahri, Shah Nawaz. (2021).
PRODUCTION OF SYNGAS FROM PLASTIC WASTE THROUGH FIXED BED
GASIFIER, HYDERABAD CITY. Science International. 33(2). 95-99.
Prieve, D. (2018). Unit Operations of Chemical Engineering.
Saebea, Dang & Ruengrit, Pornnapat & Arpornwichanop, Amornchai & Patcharavorachot,
Yaneeporn. (2020). Gasification of plastic waste for synthesis gas production. Energy
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Scheirs, J., & Kaminsky, W. (2006). Feedstock Recycling and Pyrolysis of Waste Plastics.
Wiley series. doi: 10.1002/0470021543.
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(1968). Coulson and Richardson Chemical Engineering. Volume 6, 3rd edition.
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PAMANTASAN NG LUNGSOD NG MAYNILA

College of Engineering and Technology

FACTORS FOR COST PROJECTION

FACTORS INFLUENCING PURCHASING POWER OF PESO

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

HISTORICAL DATA OF PURCHASING POWER OF PESO (PPP)

Table 12.4: PPP from 2014 to 2020 (Region IV-A)

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Historical Data of Purchasing Power of

Figure 12.3: Historical Data of Purchasing Power of Peso

PROJECTION OF PURCHASING POWER OF PESO

1. Arithmetic Straight Line

Combined PPP Projection

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Table 12.5: Summary of Projected PPP using Different Projection Methods

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

COMPARISON OF PURCHASING POWER OF

Arithmetic Straight Line Arithmetic Geometric Curve Statistical Straight Line

Figure 12.4: Comparison of Projection of PPP between the 5 Projection Methods

BEST PROJECTION FOR PURCHASING POWER OF PESO

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

ARITHMETIC MODELS STATISTICAL MODELS

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

FACTORS AFFECTING THE INDEX OF COMPENSATION

The following factors influence the compensation index:

As the company's operations progress, the following factors will be noticed.

HISTORICAL DATA OF INDEX OF COMPENSATION

Table 12.7: Index of Compensation from 2014 to 2018

YEAR INDEX OF COMPENSATION VALUE

HISTORICAL DATA OF INDEX OF

Figure 12.5: Historical Data of Index of Compensation

PROJECTION OF INDEX OF COMPENSATION

1. Arithmetic Straight Line

COMBINED INDEX OF COMPENSATION PROJECTION

PROJECTION OF INDEX OF COMPENSATION

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

COMPARISON OF INDEX OF COMPEN-

Arithmetic Straigt Line Arithmetic Geometric Curve Statistical Straight Line

Figure 12.6: Comparison of Projection of Index of Compensation between the 5 Projection

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

BEST PROJECTION METHOD OF INDEX OF COMPENSATION

PROJECTION OF INDEX OF COMPENSATION

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Purchasing Power of Peso on 2026 = 0.79

B. COST OF AUXILIARIES EQUIPMENT

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

(Char 1 & 2 Standard elbow 2 3,877.00 7,754.00 8,244.76

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design 286

SP NO. 2: 24 in (sch 10) 22 6,100 134,200 142,693.67

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

PLANT SITE PROPERTY DATA

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

No. Unit Cost Total Projected

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Total Capital Investment = Fixed Capital Investment + Working Capital

Syngas Production by Thermochemical Processing of Waste Plastic: Equipment Design

Table 12.14. Breakdown of the Total Capital Investment