KM 452 CHEMICAL ENGINEERING DESIGN 2

EQUIPMENTS DESIGN Tanks Heat Exchangers Flush Drum Compresor Condenser Reactor Distillation Columns Quench Tower Pump

CALCULATION OF CAPITAL INVESTMENT (TL)

% range% I. Direct Costs A. Eqp.+ Install.+ Instrumentation+Piping+Electrical+Insulation +Painting 1. Purchased Equipment Cost PEC Installation, including insulation and painting 25-55% of PEC Instrumentation and controls,installed 8-50 % of PEC Piping, installed 10-80% of PEC Electrical, installed 10-40% of PEC B. Buildings, process and auxiliary 10-70% of PEC C. Service facilities and yard improvements % of PEC D. Land 4-8% of PEC

II. Indirect Costs % range % A. Engineering and supervision 5-30% of direct costs B.Legal Expense 1-3% of FCI C. Construction expense and contractor's fee % of FCI D. Contingency 5-15 % of FCI ??

% range % III. Fixed-Capital Investment ( Direct+indirect) costs IV. Working Capital 10-20% of TCI V. Total Capital Investment FCI+WC

TOTAL ANNUAL COST

Estimation of Total Product Cost, TL/Year I. Manufacturing Cost A. Direct Product Costs Raw Materials Operating Labor Direct Supervisory Utilities Maintanence Operating Supplies Laboratory Charges Patents and Royalities Catalyst

Total Utility Cost(TL/year) Water Solvent Steam Electricity Dowtherm A Cooling water TOTAL, TL

B. Fixed Charges(TL/YEAR) 1. Depreciation Local Taxes Insurance C. Plant Overhead Cost(TL/YEAR)

Estimation of Total Product Cost, TL/Year II. General Expenses A. Administrative Costs B. Sales and Marketing C. Research and Development

TOTAL ANNUAL COST(TL/YEAR)

FCI = 1.15E+08 TL TCI = 1.86E+08 TL TAC= TL/year As ( ton/year *1000) kg/year of Acrylic acid produced in the plant at 100 % capacity, the unit production cost is; ( TL/year) / (100000*1000)kg/year = 2.91 TL/ kg Acrylic acid

Gross earning cost Basis; Minimum Acceptable Rate of Return = 30% Taxes : 30% (Total income - Total product cost)

Rate of Return = Np/TCI Net Profit (Np) at 100% capacity, p: Selling Price of Acrylic acid per kg. 0.3x 1.86E+08 = (100000*1000 kg / year) x (p – 2.91) x (1-0.30) ACRYL Selling Price(after taxes)= 3.18 TL/kg ACRYL Selling Price(before taxes)= 3.30 TL/kg

after taxes ; net profit= TL/yr Before taxes; net profit= TL/yr Annual cash flow = net profit + depreciation= (after)= TL/yr (before)= TL/yr

Payback period =FCI/ANNUAL CASH FLOW= years (after taxes)PERIOD= 1.15E+08 / = 3.4 years (before taxes)PERIOD= 1.15E+08/ = 2.3 years

BREAK EVEN POINT(BEP) BEP=TAC/(AFTER TAXES SELLING PRICE) = /3.18 BEP= (BEFORE TAXES SELLING PRICE) = /3.30 BEP= SHUT DOWN POINT(SDP) SDP=(TAC- FC)/(AFTER SELLING PRICE) = /3.18 SDP= (BEFORE TAXES SELLING PRICE) = /3.30 SDP=