Question 10.4: You are part of a team designing a new plant and have respon...
You are part of a team designing a new plant and have responsibility for process B. You are considering three alternates. All meet the project’s technical requirements and are sound from an environmental and safety standpoint. You have estimated capital and production costs for each option; they are summarized below:
Cost Category |
Option 1 |
Option 2 |
Option 3 |
Capital ($M) |
2.5 |
2.9 |
3.2 |
Raw materials, catalyst ($M/yr) |
0.70 |
0.50 |
0.30 |
Manufacturing costs ($M/yr) | |||
Operating labor |
0.25 |
0.20 |
0.17 |
Employee benefits, supervision, laboratory |
0.18 |
0.14 |
0.12 |
Utilities |
0.37 |
0.19 |
0.13 |
Maintenance |
0.15 |
0.17 |
0.19 |
Insurance and taxes, operating supplies, plant | |||
overhead |
0.13 |
0.15 |
0.16 |
Depreciation |
0.17 |
0.19 |
0.21 |
Total ($M/yr) |
1.25 |
1.04 |
0.98 |
Production cost differences ($M/yr) |
1.95 |
1.54 |
1.28 |
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