Start on the completion of construction

Assignment Help Chemical Engineering
Reference no: EM13884260

A plant is proposing to install a combined heat and power system to supply electrical power and process steam. Power is currently taken from a utility company and steam is generated using on-site boilers. The capital cost of the CHP plant is estimated to be $23 million. Combined heat and power is expected to give net savings of $10 million per year. The plant is expected to operate for 10 years after the completion of construction.

Calculate the cumulative net present value of the project, at a discount rate of 12%, using MACRS depreciation with a seven-year recovery term. Also, calculate the discounted cash flow rate of return.

Construction will take two years, and the capital will be paid in two equal increments, at the end of the first and second years. The savings (income) can be taken as paid at the end of each year. Production will start on the completion of construction.

Reference no: EM13884260

Questions Cloud

Result in a loss of production : The estimated cost of the pipes, per unit length is: schedule 40 carbon steel $5, schedule 80 carbon steel $8.30, stainless steel (304) schedule 40 $24.80. Installation and fittings for all the materials adds $16.5 per unit length. The downtime re..
Compares the date of deposit according to the books : 1.Explain why an auditor compares the date of deposit according to the books to the date of disbursement according to the books on an interbank transfer schedule to detect kiting.
Find the p-value of a two-tailed test : Find the p-value of a two-tailed test if x (x bar) =51.8 and s =10.4. P= ___ (rd. to 4 dec. places). Find the p-value of an upper-tailed test if x (x bar) = 51.8 and s= 10.4. P= ___ (rd. to 4 dec. places)
What factors led to the mortgage default crisis? : What factors led to the mortgage default crisis?
Start on the completion of construction : Construction will take two years, and the capital will be paid in two equal increments, at the end of the first and second years. The savings (income) can be taken as paid at the end of each year. Production will start on the completion of constru..
Fair value estimates make the audit : 1.Briefly explain why accounting standards related to fair value estimates make the audit of financial instruments more complex.
Adsorption system to recover solvent : An electronics plant uses an adsorption system to recover solvent from a vent gas stream and prevent volatile organic compound (VOC) emissions. The vent gas flow rate is 20 m3 /s of dry air at 293 K, 1.5 atm.
Realizable value audit objective for a financial instrument : 1.How would an auditor test the realizable value audit objective for a financial instrument classified as a level 3 fair value estimate?
Explain the reduced cost associated with standard desks : Develop a linear mathematical optimization model to determine how many of each desk the company should make next week to maximize profit contribution. Explain the reduced cost associated with standard desks

Reviews

Write a Review

Chemical Engineering Questions & Answers

  Batch fermentation of glucose to glutamic

The batch fermentation of glucose to glutamic acid using Brevibacterium divaricate is described in detail in US patent 2,978,384. In Example I in the patent a 10.5 wt% glucose feed was fermented for 72 hours at 30 °C

  Define important information about vapor pressure

Important information about Vapor pressure, At the top of Long's Peak in the Rocky Mountains (a) what is the vapor pressure if boiling a container of eggs (without a lid) occurs

  Hydrogenation of phenol to a mixture

Adipic acid is used in the manufacture of nylon 6,6. It is made by hydrogenation of phenol to a mixture of cyclohexane and cyclohexane (known as KA oil-ketone and alcohol), followed by oxidation with nitric acid.

  Gold has a face centered cubic crystal structure where

gold has a face centered cubic crystal structure where there are four atoms per unit cell.below is a calculated xrd

  Dehydrogenation of ethyl benzene

Styrene is made by dehydrogenation of ethyl benzene, which is formed by alkylation of benzene with ethylene. Propose target yields for the alkylation and dehydrogenation steps if the forecasted prices per metric ton are styrene $800, ethylene $800..

  Mole fractions of benzene and toluene

How will the mole fractions of benzene and toluene in the liquid change with time (increase, decrease, or remain constant)? Explain your answer.

  Estimate of the isbl capital cost of building

A preliminary (Class 4) estimate of the ISBL capital cost of building a 200,000 ton per year ethanol plant by corn dry milling has been stated as $130 MM -30%/+50%.

  Write a function called int

Write a function called int_col that has one input argument, a positive integer n that is greater than 1,and one output argument v that is a column vector of length n containing all the positive integers smaller than or equal to n, arranged in suc..

  Introduction to chemical engineering computing

Circle all answers that are correct; there can be 0 to 5 correct answers. Which of the statements below is true?

  1 when a thermocouple is moved from one medium to another

1 when a thermocouple is moved from one medium to another medium at a different temperature the thermocouple must be

  Determine a metric to quantify the reactor performance

Choose an initial guess for reactor temperature and pressure within the range provided and simulate the process described - Determine a metric to quantify the reactor performance then use this parameter to optimize the reactor temperature and pressu..

  Adsorption system to recover solvent

An electronics plant uses an adsorption system to recover solvent from a vent gas stream and prevent volatile organic compound (VOC) emissions. The vent gas flow rate is 20 m3 /s of dry air at 293 K, 1.5 atm.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd