$
Main plant items 18000
Installation factor 4
ISBL installed cost 72000
OSBL costs 0
EPC costs 21600
Contingency 14400
Total capital cost 108000
Year
Gross
profit ($)
Depreciation
charge ($)
Taxable
income
($)
Taxes paid
($)
Cash Flow ($)
Discount
factor
Present
value of CF
($)
1 0 0 0 0 -108000 0.881 -95163.96 5yrMACRS
223500 21600.00 1900 0 23500.00 0.776 18245.90 20
323500 34560.00 -11060 665.00 22835.00 0.684 15622.38 32
423500 20736.00 2764 -3871.00 27371.00 0.603 16500.07 19.2
523500 12441.60 11058.4 967.40 22532.60 0.531 11968.93 11.52
623500 12441.60 11058.4 3870.44 19629.56 0.468 9187.62 11.52
723500 6220.80 17279.2 3870.44 19629.56 0.412 8095.65 5.76
823500 0.00 23500 6047.72 17452.28 0.363 6342.23
923500 0.00 23500 8225.00 15275.00 0.320 4891.25
10 23500 023500 8225.00 15275.00 0.282 4309.92
Interest rate 13.49%
Total = Net present value = 0.00
Capital costs
ISBL Capital Cost
OSBL Capital Cost
Engineering Costs
Total Fixed Capital Cost
REVENUES AND PRODUCTION COSTS
CAPITAL COSTS
CONSTRUCTION SCHEDULE
CASH FLOW ANALYSIS
ECONOMIC ASSUMPTIONS
Capital Cost Basis Year
2010
China
ECONOMIC ANALYSIS
Company Name Project Name Adipic acid from phenol
Address
Project Number Sheet 1
REV DATE BY APVD REV DATE BY APVD
ECONOMIC ANALYSIS 11.1.07 GPT
Adipic Acid from Phenol 212.21.11 GPT
Form XXXXX-YY-ZZ
Owner’s Name
Plant Location Units Metric
Case Description On Stream 8,000 hr/yr 333.33 day/yr -91.5
$MM/yr $MM Year % FC % WC % FCOP % VCOP 1
Main product revenue 560.0
ISBL Capital Cost
195.4 1 30% 0% 0% 0% 560 560 206.5 206.4587
Byproduct revenue 4.4
OSBL Capital Cost
78.2 2 70% 0% 0% 0% 4.4 4.4
Raw materials cost 410.8
Engineering Costs
27.4 3 0% 100% 100% 50% 410.8 410.8
Utilities cost 47.3 Contingency 41.0 4 0% 0% 100% 100% 47.3 47.3
Consumables cost 13.1
Total Fixed Capital Cost
342.0 5 0% 0% 100% 100% 13.1 13.1
VCOP 466.8 Equity capital 188.1 6 0% 0% 100% 100% 466.8 466.8
Salary and overheads 16.4 7+ 0% 0% 100% 100% 16.4 16.4
Maintenance 10.8 Working Capital 59.5 10.8 10.8
Interest 14.7 3.6 3.6
Royalties 3.0 3 3
FCOP 44.9 33.8 33.8
Cost of equity 40% Debt ratio 0 Tax rate 35%
Cost of debt 1% Depreciation method Straight-line
Cost of capital 40.0% Depreciation period 10 years
All figures in $MM unless indicated
Project year Equity Cap Ex Revenue CCOP Gr. Profit Deprcn Taxbl Inc Tax Paid Cash Flow PV of CF NPV
1 56.4 0.0 0.0 0.0 0.0 0.0 0.0 -56.4 -40.3 -40.3
2 131.7 0.0 0.0 0.0 0.0 0.0 0.0 -131.7 -67.2 -107.5
3 59.5 280.0 278.3 1.7 34.2 -32.5 0.0 -57.8 -21.1 -128.5
4 0.0 560.0 511.7 48.3 34.2 14.1 0.0 48.3 12.6 -116.0
5 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 8.1 -107.9
6 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 5.8 -102.1
7 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 4.1 -98.0
8 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 2.9 -95.1
9 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 2.1 -93.0
10 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 1.5 -91.5
11 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 1.1 -90.4
12 0.0 560.0 511.7 48.3 34.2 14.1 4.9 43.4 0.8 -89.7
13 0.0 560.0 511.7 48.3 0.0 48.3 4.9 43.4 0.5 -89.1
14 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.3 -88.8
15 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.2 -88.6
16 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.1 -88.5
17 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.1 -88.4
18 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.1 -88.3
19 0.0 560.0 511.7 48.3 0.0 48.3 16.9 31.4 0.1 -88.3
20 -59.5 560.0 511.7 48.3 0.0 48.3 16.9 90.9 0.1 -88.1
Average cash flow 36.7 $MM/yr NPV 10 years -91.5 $MM IRR 10 years 4.8%
Simple pay-back period 10.9 yrs 15 years -88.6 $MM 15 years 11.4%
Return on investment (10 yrs) 1.65% 20 years -88.1 $MM 20 years 13.5%
Return on investment (15 yrs) 3.97% NPV to yr 19 -88.3 $MM
ECONOMIC ANALYSIS
CASH FLOW ANALYSIS
ECONOMIC ASSUMPTIONS
REVENUES AND PRODUCTION COSTS
CAPITAL COSTS
CONSTRUCTION SCHEDULE
Capital Cost Basis Year
2010
China
Month No of days Average temp difference Degree days
> 80F < 70F > 80 F < 70 F Cooling Heating
January 0 31 050 01550
February 0 28 055 01540
March 0 25 040 01000
April 0 20 028 0560
May 5 15 210 10 150
June 10 5 5 4 50 20
July 20 0 8 0 160 0
August 20 0 7 0 140 0
September 10 5 4 5 40 25
October 2 20 215 4300
November 0 30 025 0750
December 0 31 045 01395
total 404 7290
(Average heating and cooling days can also be found from National Climatic Data Center)
Thickness U Heating load Cooling load Heating cost Cooling cost Capital cost Total cost
(mm)
(W/m2K) (GJ/m2y) (GJ/m2y) ($/m2y) ($/m2y) ($/m2y) ($/m2y)
020 12.59712 0.698112 100.77696 3.49056 0 104.2675
25 0.9 0.5668704 0.03141504 4.5349632 0.1570752 0.6 5.292038
50 0.7 0.4408992 0.02443392 3.5271936 0.1221696 1.2 4.849363
100 0.3 0.1889568 0.01047168 1.5116544 0.0523584 2.4 3.964013 optimum
150 0.25 0.157464 0.0087264 1.259712 0.043632 3.6 4.903344
200 0.2 0.1259712 0.00698112 1.0077696 0.0349056 4.8 5.842675
250 0.15 0.0944784 0.00523584 0.7558272 0.0261792 6 6.782006
Project NPV Cost Project Cost* NPV*
(MM$) (MM$) Present
A100 61 000
B60 28 000
C70 33 000
D65 30 000
E50 25 125 50
F50 17 117 50
G45 25 000
H40 12 112 40
I40 16 116 40
J30 10 110 30
sum 80 210
constraint 80
Use solver to maximize sum of NPV s.t. sum of cost ≤ constraint, & D3:D12 binary
a) BCFHJ NPV = 250
b) DEFHIJ NPV = 275
c) EFHIJ NPV = 210
d) FHJ
e) Always tends to pick small projects, because they help match the constraint
Could use an alternative measure such as NPV/cost or IRR and see if maximizing that gave the same set
Mol H2O Mol STY T
0.5 0.2301 549
1 0.2515 546.3
2 0.2886 543.9
3 0.3213 543.3
4 0.351 543.7
5 0.3786 544.6
6 0.4044 545.7
7 0.4287 547
8 0.4517 548.5
9 0.4735 549.9
10 0.4942 551.4
0
0.1
0.2
0.3
0.4
0.5
0.6
0 2 4 6 8 10 12
Conversion of EB
Molar ratio steam to EB
542
543
544
545
546
547
548
549
550
551
552
0246810 12
Reactor Outlet Temperature
Molar ratio steam to EB
Length (ft) Length (m) Number
Area (m2) Vol (m3)Db (m) Db (ft)
10 3.048 360 350.3 8.90 2.70 8.87
12 3.6576 300 350.3 8.90 2.48 8.15
16 4.8768 225 350.3 8.90 2.17 7.12
20 6.096 180 350.3 8.90 1.96 6.42
24 7.3152 150 350.3 8.90 1.80 5.89
Vit C Vit B1
ko (/s) 3.60E+02 1.88E+09
Ea (J/mol.K) 4.60E+04 9.70E+04
k1 (120C) 0.00027676 0.00024053
k1 (140C) 0.000547256 0.00101282
kt (120) 0.24908408 0.21647883
kt (140) 0.098506092 0.18230688
C at outlet (mg/l) 12 0.3
C at inlet (120C) 15.394 0.373
C at inlet (140C) 13.242 0.360
Length (ft) Length (m) Dia (in) Dia (m) Number
Area (m2) Vol (m3)Db (m) Db (ft)
10 3.048 6 0.1524 79 115.3 4.39 2.00 6.55
12 3.6576 6 0.1524 66 115.6 4.40 1.84 6.03
16 4.8768 6 0.1524 50 116.8 4.45 1.61 5.29
20 6.096 6 0.1524 40 116.8 4.45 1.45 4.77
24 7.3152 6 0.1524 33 115.6 4.40 1.33 4.36
U W/m2K 300
Am2 12.95
120 110 100 90 80 70 60 50 40 30
Coolant in C10 10 10 10 10 10 10 10 10 10
Coolant out C50.302681 46.638801 42.97492112 39.31104102 35.64716094 31.98328083 28.31940076 24.65552064 20.99164054 17.3277604
Coolant velocity m/s 4 4 4 4 4 4 4 4 4 4
Coolant mass flow kg/s 2.0270927 2.0270927 2.02709272 2.02709272 2.02709272 2.02709272 2.02709272 2.02709272 2.02709272 2.02709272
UA W/K 3885 3885 3885 3885 3885 3885 3885 3885 3885 3885
dT transfer 88.32138 80.292164 72.26294738 64.23373099 56.20451459 48.17529821 40.1460818 32.11686542 24.08764903 16.05843266
Q max W 343128.56 311935.06 280741.5506 249548.0449 218354.5392 187161.0335 155967.5278 124774.0222 93580.51648 62387.0109
water dT 40.302684 36.638803 32.97492299 29.31104265 25.6471623 21.98328197 18.31940162 14.65552129 10.99164095 7.327760624
coolant out C 50.302684 46.638803 42.97492299 39.31104265 35.6471623 31.98328197 28.31940162 24.65552129 20.99164095 17.32776062
ratio 1.000000 10.999999957 0.999999959 0.999999962 0.999999964 0.999999969 0.999999973 0.99999998 0.999999987
Tank heat capacity 262080000 262080000 262080000 262080000 262080000 262080000 262080000 262080000 262080000
time s 800.16656 884.3946158 988.4410414 1120.233181 1292.576747 1527.590702 1867.055304 2400.499679 3360.699556
14241.65738
237.3609564
3.95601594
0
0.5
1
1.5
0 0.2 0.4 0.6 0.8 1 1.2
Value
Time (h)
Optical density
Case 1 2 3
Nitrogen amount (kg) 26770 26770 26770
Heating time (s) 2400 5400 2200
Nitrogen mass flow (kg/s) 11.15416667 4.95740741 12.1681818
N2 inlet pressure (bar) 2.5 2.5 5.5
N2 density (X bar, 260C) (kg/m3) 0.633611111 0.63361111 3.467
N2 density (1.5 bar, 260C) (kg/m3) 0.679166667 0.67916667 0.67916667
N2 viscosity at inlet (Ns/m2) 2.78E-05 2.78E-05 2.79E-05
N2 viscosity at outlet (Ns/m2) 2.03E-05 2.03E-05 2.03E-05
Average N2 density 0.656388889 0.65638889 2.07308333
Average N2 viscosity 0.000024055 2.4055E-05 0.00002409
N2 thermal conductivity (W/mK) 3.48E-02 3.48E-02 3.48E-02
Nitrogen vol flow (m3/s) inlet 17.604121 7.82405378 3.50971497
Nitrogen vol flow (m3/s) outlet 16.42331288 7.29925017 17.9163413
Average nitrogen vol flow (m3/s) 17.01371694 7.56165197 10.7130282
Average superficial velocity (m/s) 2.239402897 0.99529018 1.41008495
particle diameter (m) 0.002 0.002 0.002
void fraction 0.4 0.4 0.4
dP/L (N/m2) 38365.52283 10384.0435 40978.5538
bed pressure drop (bar) 3.74 1.01 4.00
Heat supply rate (kW) 2262.065 1005.36222 2467.70727
bed heat transfer coeff (W/m2K) 0.684920158 0.33012292 1.26994051
bed are per unit volume (/m) 1800 1800 1800
Bed area per m height (m2) 13675.38219 13675.3822 13675.3822
gas-bed effective delta T (K) 190 190 191
length of heat transfer zone (m) 1.27107758 1.17207069 0.74393917
Membrane Temperature (ºC)
CO2O2N2SCO2/N2 SCO2/O2
Natural rubber 25 99.6 17.7 6.12 16.3 5.6
Ethyl cellulose 25 113 15 337.7 7.5
Polystyrene 20 10 2.01 0.32 31.3 5.0
Polycarbonate 25 81.4 0.3 26.7 5.7
Poly(dimethylsiloxane) 25 3240 605 300 10.8 5.4
Poly(ethylene phthalate) 25 0.15 0.03 0.006 25.0 5.0
Poly(vinyl alcohol) 20 0.0005 0.00052 0.00045 1.1 1.0
Design Standard Efficiency as fn particle diameter, microns
Diameter (m) 1.814 0.203
Flow rate (m3/h) 100000 669 eff -LN(1-eff)
Density difference (kg/m3)1800 2000 5 0.48 0.653926
Gas viscosity (mNs/m2)0.02 0.018 10 0.7 1.203973
15 0.83 1.771957
Scale factor, S 2.42762956 20 0.92 2.525729
25 0.96 3.218876
30 0.98 3.912023
Curve is fitted by eff = 1 – exp(-0.1296 d) (see graph) 40 0.995 5.298317
So new efficiency curve = 1 – exp(-a d), where a = 0.1296/S = 0.053385 50 1
Particle size distribution
% less than
2 2
5 5
10 10
20 20
30 40
40 70
50 100
Particle size range % in range mean d efficiency collected at exit % at exit
40-50 30 45 0.909 27.28 2.72 10.93
30-40 30 35 0.846 25.37 4.63 18.65
20-30 20 25 0.737 14.73 5.27 21.20
10-20 10 15 0.551 5.51 4.49 18.08
5-10 5 7.5 0.330 1.65 3.35 13.49
2-5 3 3.5 0.170 0.51 2.49 10.02
<2 2 1 0.052 0.10 1.90 7.63
Total 75.16 24.84
y = 0.1296x
R² = 0.9991
0
1
2
3
4
5
6
020 40 60
Series1
Linear (Series1)
Iteration 1 2 3
Duty (W) 4.41E+06 4.41E+06 4.41E+06
Effective dT (K) 27.7 27.7 27.7
Overall htc (W/m2K) 320 240 190
Area (m2) 497.5181 663.3574 837.9251
Area per tube (m2) 1.437 1.437 1.437
Number of tubes 346.2199 461.6266 583.1073
# exchangers in series 4 4 4
# tubes per exchanger 86.55498 115.4066 145.7768
# tubes per bank 43.27749 57.70332 72.88841
# tubes rounded up 44 58 73
Diesel velocity (m/s) 0.616136 0.467414 0.37137
inside htc (W/m2K) 541.7982 434.3675 361.3611
overall htc (W/m2K) 237.9111 211.5101 190.0246
T166.0552
dTm 151
Target 151
Metal k (W/mK)
Admiralty Brass 111
Aluminum, pure 204
Aluminum Bronze 76
Carbon Steel, max 0.5% C 54
Chromium 90
Copper, pure 386
Copper brass (70% Cu, 30% Zi) 111
Hastelloy C 9
Monel 26
Nickel 90
Stainless Steel 16
Tantalum 54
Titanium 21
Water outlet temperature 33.64702
Effective dT 11.9
Target 11.9