Considering entering the recycled field

Assignment Help Chemical Engineering

Reference no: EM13943482

1. An effluent disposal contractor is considering entering the recycled field. At present he incinerates an organic waste containing recoverable solvents and dumps the aqueous based effluent containing acids and metals. After marketing and technical studies he has four possible processes. Process A is solvent recovery by distillation, B is hydrochloric acid recovery, C is copper oxide recovery, and D is copper and nickel metal recovery. Either process C or D could be built. Details of the alternatives are tabulated below with the relevant data.

	A	II	C	D
Capacity (ton/yr)	7000	5000	1000	WOO
FCI (S)	240000	90000	150000	350000
OC (excluding
Depreciation (S/ton)	170	10•	260*	670•
Average product value
(S/ton)	200	25	300	800
Plant life	8	9	6	7

*These are reduced by 10% if the solvent recovery plant is not built as the heat from the incinerator may be utilized.

Which plant or plants should the contractor build? Comment on the validity of your conclusions and indicate what other factors may influence his decision.

ASSUME No salvage value

50% tax rate

No working capital = 0.2

USE Straight-line depreciation

Reference no: EM13943482

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