C10UNIVERSITI TUNKU ABDUL RAHMANLEE KONG CHIAN FACULTY OF SCIENCE AND ENGINEERING

UEMK4353PROCESS AND PLANT DESIGN IIPRODUCTION OF NITROBENZENE (NB)

SIZING AND COSTING(ASSIGNMENT 4)

GROUP 18YEW CHOON SENG 0903217PANG TUNG HEE 1102997MARILYN YONG YUEN LING0905714DIROSHA A/P THIAGUTHEVAN0903189

A project report submitted in partial fulfilment of the requirements for the award of Bachelor of Engineering (Hons.) Chemical Engineering

EQUIPMENT SIZING

1.1 Reactor R-100 Sizing Reference: Elements of Chemical Reaction EngineeringType of Reactor = CSTR

Assumption:1) There is no pressure drop.2) The Reactor is a steady state but non-isothermal CSTR.3) , and X is already specified.

Figure 1:Steps to determine the volume of steady-state Non-isothermal CSTRFrom the reference of The Kinetic of Aromatic Nitration, the k value in 25.8 is 0.07824 L/mol.min . k (25.8=298.95 K) = 0.07824 L/mol.min

The Activation Energy for this reaction is E = (-238.88 (s) + 263.37) J/molWhere s = the weight percentage in of sulphuric acid in the reactor input.Thus,E = (-238.88 (0.37) + 263.37) J/mol = 174984.4 J/mol.R = 8.314 J / K.molThus, rearrange the Arrhenius equation to get the k value for the outlet temperature, which is 50 or 323.15 K.

k (50 = 323.15K) = 15.24 L/mol.min The inlet concentration will be: 13.85 lbmol / 10.385 lbmol / r = 0.002192 lbmol / L.min

Volume of reactor will be V = 2341.12 L = 2.3412

For safety and to increase the efficiency, we add increase 10% of the initial volume, thus, the new volume for the reactor will beV = 2.3412 1.1 = 2.5752 D = D = 0.9359 mL = 4DL = 3.7435 m

Agitator Design Type of Agitator : Turbine Impeller

Diameter of Turbine Impeller = Diameter of Reactor / 3Diameter of Turbine Impeller = 0.3120 m

Height of Turbine Impeller = L/3Height of Turbine Impeller = 1.25 m

Cooling jacket of the ReactorThe jacket is used to cool the reactor in order to maintain 50 so it will not have any side products occur. The jacket will fit the reactor of the 80% of height of reactor.Thus,Height of Jacket = L 0.8 = 2.9948 mWhereas the diameter of the jacket is exactly the same as the diameter of the reactor = 0.9359 m

1.2 Acid Wash Reactor R-101Sizing

Figure 2 : Schematic diagram of Acid Wash Reactor R-101

Since the acid wash process is the removal of un-decanted sulfuric acid by react with the sodium carbonate solid, and the reaction is isothermal, and both the reacted products are solid, we can design this reactor as a mixer.

As the residence time does not affect to other component except sulfuric acid, we can assume the residence time for this mixing process is = 5 minute = 0.08333 hr,

Volume of the Mixer = V = []V = [(46260.4 lb/hr)/(216.057 kg/)] + [(236.238 lb/hr)/(2540 kg/)] V = 16.19 + = 16.19703

The diameter of the mixer D = D = 1.73 mL = 4DL = 6.92 m

1.3 Alkali Wash Reactor V-101Sizing

Figure 3: Schematic diagram of Alkali Wash Reactor V-101

The alkali Wash Reactor is same as the acid wash reactor, the difference is it removes the water by reacts with it with solid Calcium Sulfate.Thus, we can make the same assumption and doing the sizing in the same method as the Acid Wash Reactor.

V = [(45958.5 lb/hr)/(217.723 kg/)] + [(209.577 lb/hr)/(2660 kg/)] V = 15.96 + = 15.96596

D = 1.7193 mL = 6.8771 m

1.4 Electrolysis Unit (or Dispersion Unit) EU SizingAccording to CMC milling, the dispersion unit or dispersion equipment for mix liquids and liquids are: 1) Horizontal Media Mill, 2) SHRED in-line rotor stator, 3) Batch Mill, 4) Multi-shaft Mixer, 5) Lab Mixer and 6) Planetary Mixer.We select multi-shaft mixer with dual shaft.Thus, the Volume of mixer vessel is = V = []V = [(57378.2 lb/hr)/(85.9847 kg/)] = 50.45 Diameter of the Mixer = D = 2.52 mHeight of Mixer = L = 10.08 m

Since there will be two shaft inside the mixer, The height of the shaft = L/3 = 3.36 mDiameter of the shafts impellers area = D/3 = 0.84 mWhereas diameter of each shaft impeller = 0.84 / 2 = 0.42 m

1.5 Air Blowers P-100, P-101, P-102SizingThe air blowers compress the air from the ambient to bring the reacted GYPSUM to the dehydration.Thus, the sizing of the compressors is:

Heat ratio of Air = k = 1.4a = According to Heuristic 48, we use /min of air

Thus, HP

Assume the efficiency of the compressor is 0.8 HP)(0.8) = 3.41 HPAssume the efficiency of motor driving compressor is 0.9 = 4.74 HP1.6 Evaporator

Figure 4

The total area of heat exchanger used is determined by the overall heat transfer coefficient, U. The overall heat exchanger coefficient in this case is 200 btu/ft = 0.00544 kW/m.The heat duty of the evaporator is obtained from the steam table. The Q is 0.83151kW/hr. To determine the area of the heat exchanger:

1.7 Decanter Operating Pressure,

Design Pressure:

= 21.75psigAt the operating temperature, the maximum allowable stress, S is 14.75psig.Assume weld efficiency, E=1.0From the sizing of the feed drum,

1.8 DryerEvaporation rate = amount of steam that is dehydrated from the Gypsum = 41.5997 lb/hr for V-102 = 13.8666 lb/hr for V-103Since the evaporation rate is between 30-3000lb/hr, V-102 is a spray dryer.We can assume and replace the evaporation rate of the spray dryer V-103 as 30 lb/hr as high evaporation rate will not affect the product after dehydration.

1.9 Heat Exchanger, Coolers and HeatersHeat Exchanger use is a floating head shell and tube heat exchanger. The total area of heat exchanger used is determine by the overall heat transfer coefficient, U. The overall heat transfer coefficient can be determined based on type of fluid and temperature of fluid flowing through shell side and tube side. The overall heat exchanger coefficient in this case is 80 Btu (0F-ft2-hr) according to (Seider, et al., 2010).

Tin = 146.00 0F Tout = 377.780F tout = 100.000F tin = 200.000F

Figure 5 : Schematic Diagram for Heat Exchanger E- 103

Tlm = (T1 t2) (T2 t1 ) ln (T1 t2) (T2 - t1)

= ( 146.00 100.00 ) ( 377.78 200.00 ) ln (146.00 100.00 ) ( 377.78 200.00 ) = 97.477 0 F The heat duty of the heat Exchanger E-103 is obtained from previous manual calculation. The Q is equal to 709288.78182 Btu/hr. Now, with the information of log mean temperature difference the heat duty and the overall heat transfer coefficient, we can now determine the area of the heat exchanger. A = Q UTlm = 9730121.4512 Btu/hr ( 200) ( 97.477 ) =499.0983232 ft2

According to (Seider, et al., 2010 ), Heuristic 54 the outer diameter of the tube is 0.01905 m while the tube length is 6.096 m.

Area for one tube = dl = ( 0.01905 ) ( 6.096 ) = 0.3648m2

Total number of tubes = 46.368 0.3648 = 127 tubesFor each shell and tube heat exchanger we assume 2 passes so the total number of tubes is reduced by half which is 64 tubes.

Overall Heat Exchanger SizingTable 1 : Heat Exchanger Sizing for Shell and Tube Heat Exchanger

EquipmentArea (m2)Number of Tubes

E-10039.21454

E-10167.19792

E-10346.36864

E-10681.114111

Table 2 : Heat Exchanger Sizing for double pipe heat exchangerEquipmentArea (m2)Number of Tubes

E-10514.99951

E-10714.57650

E-10811.95850

1.10 MixerFor a simple mixer, there are only two simple parameter needed. Assumed residence time, equals to 5 minute = 0.0833 hrVolume , V = [ FV / PV ] * ( ) * 2 = [ (19395/ 1502) * ( 5/60) * 2] + [ ( 301.89 / 1834) * ( 5/60) * 2 ] = 18925.6312 +n 241.256997= 19166.89 m

The diameter of the mixer,L = 4D , D = D = = 18.27 mThe length of the mixer,L = 4D = 4 ( 18.27 ) = 73.08 m

1.11 Distillation Column C-100Condition:Operating Pressure = 1 atm = 14.7 psigHighest Temperature = 210C = 410FNumber of trays = 15

Design Pressure = = = 21.755 psig

1.12 Distillation Column C-101Condition:Operating Pressure = 1 atm = 14.7 psigHighest Temperature = 85C = 185FNumber of trays = 17

Design Pressure = = = 21.755 psig

COSTING

2.1 Reactor R-100

However, since the operating pressure is 1 atm =14.22 psig and the reaction is isobaric. We can directly get the minimum wall thickness with referring the vessel inside diameter.

Figure 6 : Finding Minimum Wall Thickness according to Vessel Inside DiameterThe vessel inside diameter is 0.9359 m = 3.28084 ft = 39.3701 inThus, the minimum wall thickness is = in = 0.25 in.

The weight of the shell and two heads is approximately: = (39.3701 in + 0.25 in)(147.38189 in + 0.8(39.3701 in))0.25 in (0.284 lb/) = 1580.83 lb

The costing of the reactor By choosing stainless steel 304 = 1.7 = For horizontal Vessels = exp{8,9552 0.2330[ln (W)] + 0.04333 } = exp (9.5898) = $ 14614.95 = For horizontal vessel = 2005 =$ 2551.69 = $ 27397.105

Bare Module Cost The bare module factor for horizontal vessels is 3.05Thus

2.2 Acid Wash Reactor R-101 However, since the operating pressure of the Acid Wash Reactor is 1 atm = 14.22 psig and it is isobaric. The low pressure can lead to give sufficient rigidity wall thickness to the vessel by using the equation above. Thus, we can directly refer to Figure 6.The vessel inside Diameter of the Acid Wash Reactor is 1.73 m = 5.68 ft = 68.11 in., thus we can choose the minimum wall thickness = 5/16 in. = 0.3125 in.

The weight of the shell and two heads is approximately: = (0.284 lb/) = 6236.92 lb

The costing of the Acid Wash Reactor By choosing stainless steel 304 = 1.7 = For Vertical Vessels= exp {7.0132 + 0.18255 [ln (W)] + 0.02997 }= exp {7.0132 + 1.5952 + 2.2884} = $ 54003 = For Vertical vessel = = 361.8(3.6114)(9.0895) = $ 11876 = $103681.1

Bare Module Cost The bare module factor for vertical vessels is 4.16Thus

2.3 Alkali Wash Reactor V-101The wall thickness calculation method is same as the Acid Wash Reactor, and since the operating pressure is low, which is 1 atm = 14.22 psig, by reffering the same table with diameter of 1.7193 m = 5.6407 ft, the wall thickness = 0.3125 in = 0.0079375 m

The weight of the shell and two heads is approximately: = (0.284 lb/) = (0.284 lb/) = 6160.21 lb

The costing of the Alkali Wash Reactor By choosing stainless steel 304 = 1.7 = For Vertical Vessels= exp {7.0132 + 0.18255 [ln (W)] + 0.02997 }= exp {7.0132 + 1.5929 + 2.2819} = $ 53530 = For Vertical vessel = = 361.8(3.5946) (9.0496) = $ 11769 = $102770

Bare Module Cost The bare module factor for vertical vessels is 4.16Thus

2.4 Electrolysis Unit (or Dispersion Unit) EU The wall thickness calculation method is also same as the acid and alkali wash reactor. The low operating pressure, P = 1 atm = 14.22 psig, with diameter of 2.52 m = 8.27 ft = 99.21 in, the minimum wall thickness = 7/16 in = 0.4375 in.

The height of the mixer is L = 10.08 m = 396.85 in.

The weight of the shell and two heads is approximately: = (0.284 lb/) = 18523 lb

The costing of the Dispersion Unit By choosing carbon steel = 1.0 = For Horizontal Vessel = exp{8.9552 0.2330[ln (W)] + 0.04333 } = exo{8.9552 2.290 + 4.184} = $ 51492 = 0 (Platform and ladder are not needed for the dispersion unit) = $ 51492

Bare Module Cost The bare module factor for horizontal vessels is 3.05Thus

2.5 Air Blowers P-100, P-101, P-102 = 1.15 for gas turbine drive (Air) = 2.5 for Stainless Steel Due to low , we use screw compressor for our air blower, by replacing the value as 10 HP

HP)]} = $ 17882 = $ 51410.75

Bare module cost Bare module factor for gas compressor = 2.15 $110533

2.6 EvaporatorThe base cost of the heat exchanger is based on equation design. Since it is a carbon steel horizontal tube evaporator. The purchase cost is determined by:

Bare module cost Bare module factor for double-pipe heat exchanger = 2.45 $ 124644.342.7 DecanterThe pressure-vessel code: (Assuming efficiency for carbon steel)

= 4.716 in = 0.393ftAdding another corrosion allowance of 1/4 in gives a total thickness of 4.716 in.

Density of carbon steel,

Vessel weight:

The purchase cost of vessel:

= $149863.57

Bare Module Cost = 3.05 (149863.57) = $ 457083.89

2.8 DryerV-102

= $205,996.87 Bare-Module Factor for dryers = 2.06 = 424353.55

V-103

= $ 44283.36Bare-Module Factor for dryers = 2.06 = 424353.55

2.9 Heat ExchangerHeat Exchanger E-103 The shell and tube heat exchanger is assumed to be floating head, thus, the base cost of the heat exchanger is based on the equation designed for floating head shell and tube heat exchanger.Base CostCB = exp { 11.667 0.8709(ln A) + 0.09005 (ln A)2} = exp { 11.667 3.341303271 + 1.325378322} = $ 15538.5The tube length correction factor, FL is equal to 1 as the tube length we assume is 20 ft. The material factor FM is equal to 2.65 because the material used is stainless steel for tube side while shell side is carbon steel. Now, the pressure factor need to be calculated to determine the purchase cost of the shell and tube heat exchanger. Material FactorFM = 1.75 + { 46.368 / 100 }0.13 = 2.65

Pressure factor Fp = 0.9803 + 0.018 (P/100) + 0.0017 (P/100 )2 = 0.9803 + 0.018 ( 14.7/100) + 0.0017 (14.7/100)2 =0.983

Purchase CostCP = FPFLFMCB = 0.983 (1) (2.65) (15538.5) = $ 40 477.0

CBM = FBMCP = 3.17 ( 40 477.0) = $ 128312.1

Overall Heat Exchanger CostingTable 3: Overall Heat Exchanger Costing for Shell and Tube Heat ExchangerEquipmentArea, (m2)Number of TubesCB, $CP, $CBM, $

E-10039.2145416056.5941 510.94131 589.7

E-10167.1979214 718.139 063.3123 830.7

E-10346.3686415 538.540 477.0128 312.1

E-10681.11411114 462.838 670.1122 584.2

Table 4: Overall Heat Exchanger Costing for Double Piped Heat ExchangerEquipmentArea, (m2)

Number of TubesCB, $CP, $CBM, $

E-10514.9954121419.8253270.88168 868.79

E-10714.5764021590.4353895.18170 213.72

E-10811.958337719.3019046.1060376.14

2.10 Distillation Column C-100Since the higher operating temperature is 410F. Take design temperature as 460F.For carbon steel, Maximum allowable stress, S = 15000 psiAssume:Wall thickness < 1.25 inchFractional weld efficiency, E = 0.85Inside shell diameter = 5ft = 60 inchCylindrical shell wall thickness, tp = = = 0.00427ft = 0.05124 inch (too small)Due to low pressure, wall thickness calculated too small to give sufficient turgidity. According to book: Product and Process Design Principles: Synthesis, Analysis and Evaluation, For internal shell diameter, Di = 5ft, minimum wall thickness tp = 0.3125 inch.Outer diameter, Do = Di + tp = 60 + 0.3125 = 60.3125 inchTangent-to-tangent length, L = (N 1) 2 = (15 1) 2 = 28ft = 336 inchAdditional wall thickness to withstand wind load or earthquake, tw = = = 0.036 inchRequired thickness to withstand internal pressure and wind load = 0.3125 + 0.036 = 0.3485 inchAverage thickness, tv = = 0.3305 inchShell wall thickness, ts = tv + corrosion allowance = 0.3305 + 0.125 = 0.4555 inchVessel weight, W = (Di + ts) (L + 0.8Di) ts = (3.142) (60 + 0.4555) [168 + 0.8(60)] (0.4555) (0.284) = 5306.96lb 5307lbPurchase cost at vertical tower, Cv = exp {7.2756 + 0.18255[ln (W)] + 0.02297[ln (W)]2} = exp {7.2756 + 0.18255[ln (5307)] + 0.02297[ln (5307)]2} = $37458Carbon steel material factor, FM = 1FMCV = $37458Cost of platform and ladder, CPL = 300.9 (Di)0.63316 (L)0.80161 = 300.9 (5)0.63316 (28)0.80161 = $12052Purchase cost at the CE index 576 for tower, ladder and platform, CP = = $57036For sieve tray,Cost per tray, CBT = 468 exp (0.1739Di) = 468 exp [0.1739(5)] = $1117FNT = = = 1.224Purchase cost of trays with CE index 550, CT = NTFNTFTTFTMCBT = (15) (1.224) (1) (1) (1117) () = $23625.35 $23626Total purchase cost for distillation column C-100 = $57036 + $23626 = $80662

2.11 Distillation Column C-101Since the higher operating temperature is 185F. Take design temperature as 235F.For carbon steel, Maximum allowable stress, S = 15000 psiAssume:Wall thickness < 1.25 inchFractional weld efficiency, E = 0.85Inside shell diameter = 5ft = 60 inchCylindrical shell wall thickness, tp = = = 0.00427ft = 0.05124 inch (too small)Due to low pressure, wall thickness calculated too small to give sufficient turgidity. According to book: Product and Process Design Principles: Synthesis, Analysis and Evaluation, For internal shell diameter, Di = 5ft, minimum wall thickness tp = 0.3125 inch.Outer diameter, Do = Di + tp = 60 + 0.3125 = 60.3125 inchTangent-to-tangent length, L = (N 1) 2 = (17 1) 2 = 32ft = 384 inchAdditional wall thickness to withstand wind load or earthquake, tw = = = 0.0466 inchRequired thickness to withstand internal pressure and wind load = 0.3125 + 0.0466 = 0.3591 inchAverage thickness, tv = = 0.3358 inchShell wall thickness, ts = tv + corrosion allowance = 0.3388 + 0.125 = 0.4608 inchVessel weight, W = (Di + ts) (L + 0.8Di) ts = (3.142) (60 + 0.4608) [408 + 0.8(60)] (0.4608) (0.284) = 11336.4lb 11337lbPurchase cost at vertical tower, Cv = exp {7.2756 + 0.18255[ln (W)] + 0.02297[ln (W)]2} = exp {7.2756 + 0.18255[ln (11337)] + 0.02297[ln (11337)]2} = $58798Carbon steel material factor, FM = 1FMCV = $58798Cost of platform and ladder, CPL = 300.9 (Di)0.63316 (L)0.80161 = 300.9 (5)0.63316 (32)0.80161 = $13412Purchase cost at the CE index 576 for tower, ladder and platform, CP = = $83186For sieve tray,Cost per tray, CBT = 468 exp (0.1739Di) = 468 exp [0.1739(5)] = $1117FNT = = = 1.129Purchase cost of trays with CE index 550, CT = NTFNTFTTFTMCBT = (17) (1.129) (1) (1) (1117) () = $24697.25 $24698Total purchase cost for distillation column C-101 = $83186 + $24698 = $107884

2.12 MixerCosting for Mixer M-100

Operating pressure, Po = 14.7 psig

Operating temperature, To = 146.039 o F

Design Pressure Pd = exp [0.60608 + 0.91615 [ ln (Po)] + 0.0015655 [ ln (Po)2] = exp [0.60608 + 0.91615 [ ln (14.7)] + 0.0015655 [ ln (14.7)2] = 26.76 psigAt the operating temperature, the maximum allowable stress, S is 15 000 psi. Assume that the wall thickness will be greater than 1.25in, giving a weld efficiency , E=1.0

From the sizing of the Mixer,

Di = 18.27m = 59.94 ft = 719.3 in

The pressure-vessel code formula

tp = PdDi / (2SE 1.2 Pd) = [(26.76) ( 719.29134)] / [ (2)(15000) (1.2)(719.29134)] = 0.6604

The value obtained lower than expected because of low operating pressure, Po. Adding another corrosion allowance of 1/8 in gives a total thickness of 0.7854 in.

ts = 0.7854 inL = 4Di = 239.76 ft = 2877.2 inDensity for carbon steel, = 0.284 lb/in3

Vessel Weight W = (Di + ts) (L + 0.8 Di) tsp = ( 719.3 + 0.7854 )(2877.2 + (0.8)(719.3) (0.7854)(0.284) = 1741 766 lb

The Purchase Cost of VesselCv = exp [ 7.0132 + 0.18255 (lnW) + 0.02297 [ln(W)2] = exp [ 7.0132 + 0.18255 (ln 1741 766) + 0.02297 [ln(1741 766)2] = $ 690 796

The purchase cost of platforms and ladders, CPL = 0Assuming carbon steel, FM = 1.0

Total Purchase Cost Cp = (FMCV + CPL) = [ (1.0) ($ 690 796) + 0 ] = $ 690, 796Bare Module Cost CBM = FBMCP = (4.16) (690.796) = $ 2873.71

2.13 Total Plant CostingIn Summary,EquipmentBare Module Cost ($)

Heat ExchangerE-100131589.70

E-101123830.70

E-102*

E-103128312.10

E-104*

E-105168868.79

E-106122584.20

E-107170213.72

E-10860376.14

ReactorR-10083561.17

DecanterV-100149863.57

Acid Wash ReactorR-101103681.10

EvaporatorV-10491575.43

Alkali Wash ReactorV-101427523.00

Spray DryerV-102424353.55

V-10344283.36

Air BlowerP-100110533.00

P-101110533.00

P-102110533.00

MixerM-1002873.71

Electrolysis Unit EU157050.60

Distillation ColumnC-10080662.00

C-101107884.00

Total Bare Module Cost ($)2910685.84

*Heat exchangers are eliminated after process integration process (assignment 1)1. Gross Roots Capital (GRC)Contingency and Fees= Total Bare Module Cost 0.08 = $ 3353110 0.08 = $ 268248.81

Total Module Cost, TMC= Total Mare Module Cost Contingency and Fees= $ 3353110 + $ 268248.81 = $ 3621358.81Auxiliary Facilities= Total Module Cost 0.1= $ 3621358.81 0.1 = $ 362135.88Gross Roots Capital, GRC = Total Module Cost + Auxiliary Facilities= $ 3621358.81 + $ 362135.88 = $ 3983494.69

2. Fixed and Total Capital Investment SpecificationCost ($)Total ($)

Direct Cost

1. Onsite

Purchased Equipment Installation10% GRC398349.47

Piping Installation10% GRC398349.47

Instrumentation and Control installation5% GRC199174.73

Electrical and Material Installation 5% GRC199174.731195048.41

2. Offsite

Building5% GRC199174.73

Yard Improvement2% GRC79669.89

Land1.5% GRC59752.42

Service Facilities1% GRC39834.95378432.00

Total Direct Cost1573480.40

SpecificationCost ($)

Indirect Cost

Contingency5% GRC199174.73

Construction Expenses3% GRC119504.84

Engineering and Supervisions2% GRC79669.89

Constructor's Fee1% GRC39834.95

Total Indirect Cost438184.42

Total Cost= Total Direct Cost + Total Indirect Cost = $ 1573480.40+ $ 438184.42 = $2011664.82

Fix Capital Investment, FCI= Total Cost + GRC== $2011664.82 + $ 3983494.69 = $ 2011664.82

Total Capital Investment, TCI = Total Indirect Cost + Total Cost + Fix Capital Investment = $ 438184.42 + $ 2011664.82 + $ 2011664.82 = $ 4461514.06

Working Capital= Fix Capital Investment 0.1= $ 5995159.51 0.1 = $ 599515.95

Start Up= Fix Capital Investment 0.07= $ 5995159.51 0.07 = $ 419661.17

3. Estimation of Operating Cost3.1. Use of UtilitiesSpecificationCost ($)Total ($)

Utilities Cost

Electricity55000 kW$ 0.06/ kW-hr26136000.00

Cooling Water50000 m/h$ 0.02/m7920000.00

Steam 100000 kg/h$ 6.60/1000kg5227200.00

Waste Water Treatment1261.58 kg/h$ 0.33/kg3297265.50

Total Utilities Cost42580465.50

SpecificationCost ($)Total ($)

Operational Cost

Direct Wages and benefits18$ 35/operator-hr4989600.00

Direct Salary and Benefits15% DW& B748440.00

Operating Supplies and Services6% DW& B299376.00

Technical assistance to manufacturing9$ 60000/ (operation/shift)-yr540000.00

Control Laboratory 9$ 60000/ (operation/shift)-yr540000.00

Total Operational Cost7117416.00

Total Cost of Utilities= $ 42580465.50 + $ 7117416.00= $ 49697881.50

3.2. Direct Production CostRaw MaterialPrice ($/kg)SpecificationCost ($)

Benzene1.3710905.7 kg118331207.28

Nitric Acid0.368797.4 kg25083146.88

Sulphuric Acid0.22136.9 kg238534.56

Total Raw Material Cost143652888.72

3.3. Indirect Production CostSpecificationCost ($)

Insurance 1% FCI59951.60

Rate (local Authority Taxes) 5% FCI299757.98

Total Indirect Cost359709.57

4. Manufacturing Cost Summary4.1. Total Manufacturing ExpensesTotal Manufacturing Expenses, AME= Direct Production Cost + Utilities + Indirect Production Cost= $ 143652888.72 + $ 359709.57 + $ 49697881.50= $ 193710479.79

4.2. General ExpensesSpecificationCost ($)

Distribution & Selling Expenses8% FCI479612.76

Research and development5% FCI299757.98

Administration3% FCI179854.79

Total General Expenses959225.52

4.3. Total Production CostTotal Production Cost, APC= Total Manufacturing Expenses + Total General Expenses= $ 193710479.79 + $ 959225.52 = $ 194669705.31

4.4. Production SalesRaw MaterialPrice ($/kg)SpecificationCost ($)

Nitrobenzene417181.53 kg544310870.40

Calsium Sulfate0.846.28kg29323008.00

Carbonic Acid0.246.28 kg73307.52

Total Revenue573707185.92

5. Cash Flow AnalysisDepreciation, AD= 15% of FCI= 0.15 $ 5995159.51 = $ 899273.93

Total Expenses, ATE= Total Production Cost, APC + Depreciation, AD= $ 194669705.31 + $ 899273.93 = $ 195568979.24

Net Annual Profit, ANP= Total Revenue - ATE= $ 573707185.92 - $ 195568979.24= $ 349108428.76

Income Taxes= 40% ANP= 0.04 $ 349108428.76 = $ 139643371.50

Net Annual Profit after tax, ANNP= ANP - Income Taxes= $ 349108428.76 - $ 139643371.50 = $ 209465057.26

Return of Investment == =

Assume no salvage value, Total Depreciation Capital, CTD = FCI= $ 5995159.51

Payback Period= = =: 0.028498936 year

First year: Assume capital Investment = 15% of TCI No sales (the plant still construction)

Second year: Assume capital investment = 30% of TCI No sales (the plant just start to operate)

Third year: Assume capital investment = 55% of TCI + Working capital No sales (the plant just start to operate)

Fourth year: Sales Income = Total revenue (sales) Federal income taxes existed

Fifth year onward: Sales income = Total revenue + 1% of total revenue Assume there is increment 1% of income from previous year