3 te tacilities.An oil/water separator efficiency will be lower if oil/water emulsion is present in the separator feed(inlet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system(chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000barrels of fluid per day. However, the actual average daily demand is 90%. The following costexpenditure data are below. Determine the present worth, future worth and annual worth capitalequivalent. Use 8% interest rate per vear. Estimate the unitary cost per barrel (S/bbl) for the use ofthis chemical, assuming a project life of 10 years.Investment:Chemical injection system: $ 50,000 (the investment includes 3 positive displacement 0.25 hppumps, each with electric motor, and storage tanks)Annual expensesElectricity: $ 600Maintenance and repair: $ 10,000Operation: $ 120,000Chemical consumption and cost: 10 gallons of demulsifier per day at $60 per gallon.FuturePump overhaul cost $400 per pump at the fifth year.Salvage value at end of the useful life: negligible.

Initial Cost = 50,000 Annual Expenses - Electricity = 600 O&M = 10,000 + 120,000 Chemical…

water separator efficiency will be lower if oilwater emulsion is present in the separator feed (iniet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system (chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000 barrels of fluid per day. However, the actual average daily demand is 90%. The following cost expenditure data are below. Determine the present worth, future worth and annual worth capital equivalent. Use 8% interest rate per year. Estimate the unitary cost per barrel (S/bbl) for the use of this chemical, assuming a project life of 10 years. Investment: Chemical iniertion

water separator efficiency will be lower if oilwater emulsion is present in the separator feed (iniet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system (chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000 barrels of fluid per day. However, the actual average daily demand is 90%. The following cost expenditure data are below. Determine the present worth, future worth and annual worth capital equivalent. Use 8% interest rate per year. Estimate the unitary cost per barrel (S/bbl) for the use of this chemical, assuming a project life of 10 years. Investment: Chemical iniertion

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.3CE

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