6. The purchased equipment cost for a proposed plant in Dhofar region which produces N-butyl alcohol is RO. 50000. The plant is an addition of an existing formaldehyde plant. The plant has sophisticated electrical and instrumentation & control and the costs for that purpose are highest of the range. The operation is essentially outdoor operation. The contractor fee and piping cost will be 8% and 12% of the direct plant cost respectively. All other costs are close to the average values found for typical chemical plants. Working capital is 15% of the total capital investment. On the basis of this information, estimate the following: (i) The total direct plant cost. (ii) The fixed capital investment. (iii) The total capital investment.

Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
icon
Related questions
Question
100%

6- Please I want answer with steps. Many thanks

6. The purchased equipment cost for a proposed plant in Dhofar region
which produces N-butyl alcohol is RO. 50000. The plant is an addition
of an existing formaldehyde plant. The plant has sophisticated electrical
and instrumentation & control and the costs for that purpose are highest
of the range. The operation is essentially outdoor operation. The
contractor fee and piping cost will be 8% and 12% of the direct plant
cost respectively. All other costs are close to the average values found
for typical chemical plants. Working capital is 15% of the total capital
investment. On the basis of this information, estimate the following:
(i) The total direct plant cost.
(ii) The fixed capital investment.
(iii) The total capital investment.
Transcribed Image Text:6. The purchased equipment cost for a proposed plant in Dhofar region which produces N-butyl alcohol is RO. 50000. The plant is an addition of an existing formaldehyde plant. The plant has sophisticated electrical and instrumentation & control and the costs for that purpose are highest of the range. The operation is essentially outdoor operation. The contractor fee and piping cost will be 8% and 12% of the direct plant cost respectively. All other costs are close to the average values found for typical chemical plants. Working capital is 15% of the total capital investment. On the basis of this information, estimate the following: (i) The total direct plant cost. (ii) The fixed capital investment. (iii) The total capital investment.
Expert Solution
steps

Step by step

Solved in 7 steps with 4 images

Blurred answer
Knowledge Booster
Hazard analysis and design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, chemical-engineering and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Introduction to Chemical Engineering Thermodynami…
Introduction to Chemical Engineering Thermodynami…
Chemical Engineering
ISBN:
9781259696527
Author:
J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:
McGraw-Hill Education
Elementary Principles of Chemical Processes, Bind…
Elementary Principles of Chemical Processes, Bind…
Chemical Engineering
ISBN:
9781118431221
Author:
Richard M. Felder, Ronald W. Rousseau, Lisa G. Bullard
Publisher:
WILEY
Elements of Chemical Reaction Engineering (5th Ed…
Elements of Chemical Reaction Engineering (5th Ed…
Chemical Engineering
ISBN:
9780133887518
Author:
H. Scott Fogler
Publisher:
Prentice Hall
Process Dynamics and Control, 4e
Process Dynamics and Control, 4e
Chemical Engineering
ISBN:
9781119285915
Author:
Seborg
Publisher:
WILEY
Industrial Plastics: Theory and Applications
Industrial Plastics: Theory and Applications
Chemical Engineering
ISBN:
9781285061238
Author:
Lokensgard, Erik
Publisher:
Delmar Cengage Learning
Unit Operations of Chemical Engineering
Unit Operations of Chemical Engineering
Chemical Engineering
ISBN:
9780072848236
Author:
Warren McCabe, Julian C. Smith, Peter Harriott
Publisher:
McGraw-Hill Companies, The