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| Teaching Since: | May 2017 |
| Last Sign in: | 385 Weeks Ago, 1 Day Ago |
| Questions Answered: | 20103 |
| Tutorials Posted: | 20155 |
MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
A 325 000 t per year methanol plant built in Australia 5 years ago cost Aus $120 million. Process improvements have caused the complexity to reduced from 15 process steps to 11. Environmental requirements will cost an adittional 20% over those for Australia. Plan cost escalation has averaged 4% per year in Belgium over the las 10 years
a. Estimate the capital cost ( million of euros) of a 500 000 per year methanol plant to be build in Belgium with construction starting next year.
b. What is the annual average surplus (net cash flow) per tonne methanol required to give an average Return on Investment of 15% on the fixed Investment, with a plant life of 10 years ?
Data
Cost indices: Australia Belgium
5 y ago 124 139
3 y ago 136 157
1 y ago 152 183
Exchange rates:
5 y ago euro 0.9 per Aus$
3 y ago euro 1.2 per Aus$
Now euro 1.4 per Aus$
Location factors:
5 y ago Belgium:Australia 1.08:1.0
Plant scale factor: 0.6
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