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FACULTY OF CHEMICAL ENGINEERING

(EH220)
PLANT DESIGN AND ECONOMICS
(CPE604)

FULL REPORT OF MINI DESIGN PROJECT


TITLE: PRODUCTION OF MALEIC ANHYDRIDE

Prepared by:
NO. NAME STUDENT ID.

1. IKA FARZANA BT ABDUL GAAFFAR 2015229982


2. NAQIBAH BT ABDUL MALEK 2015430194
3. NURAZREEN SHAZWIN BT KAMARUDIN 2015230058
4. NUR AMIRA JASMIN BT MAT REFIN 2015663662
5. MADIHAH BT ZAIMURI 2015250034
6. ANIS SYAFIQAH BT JAMIAN 2015283408

Submitted to:
PROF. IR. DR. HJ. JAILANI BIN SALIHON
TABLE OF CONTENT
No. Title Page
1 1. Chemical Product Design
Identification of needs
Identification of ideas
Selection of the best idea to serve the need, through Concept
Screening and Concept Scoring
2 2. Selection of Process Routes
Chemical reaction(s) involved
Stoichiometric equation(s)
Reaction equilibrium-controlled or kinetic-controlled
Catalyst(s) used
Excess reactants to increase product yield at equilibrium
Competing reactions and selectivity
Special conditions of temperature or pH
Single pass conversion
3 3. Chemical Reactor Design
Batch or Continuous reactor and justification for the choice
Identification of input/output structure of the reactor
Material balance in the reacting system
Chemical Engineering Design (sizing) of reactor
4 4. Recycle Structure
Feedstock(s) is(are) to be recycled
Material balance of reactor with recycle(s)
5 5. Downstream Processing
Separation process(s) to be used and justifications
Separation system produce a pure stream of unreacted feed
material to be recycled
Material balance of the separation system
Chemical Engineering Design of the Separation System
Product purification process(es) is(are) to be used and
justifications
Product Purification System met the product purity specification
Material balance of the Product Purification System
Chemical Engineering Design of the Product Purification System
6 6. Capital Cost Estimation
Estimate the purchase cost at base conditions for each equipment
Estimate Bare Module cost of each equipment
Estimate the Total Module cost of each equipment
7 7. Manufacturing Cost Estimation
Estimate the annual cost of Raw Materials
Estimate the annual cost of Operating Labour
Estimate Total Direct Manufacturing Cost
Estimate Fixed Manufacturing Cost
Estimate General Manufacturing Cost
Estimate Total Manufacturing Cost
8 8. Profitability Analysis
Estimate Annual Revenue
Use Straight Line Depreciation over 5-year, i=0.15, salvage
value=0, and plant life span of 10 years to calculate NPV.
9 Cited the relevant and reliable references used
1. Chemical Product Design

Chemicals in the basic needs for all the industries which include chemical industry, car
manufacturing industry, food industry and others. For instance, in car manufacturing industry,
they need fibre glass to build a car and in food industry, they need fumaric acid as additives for
the food preservation. These show how important chemical is to every manufacture company
in order to fulfil the high demands of their potential customer. Therefore, we are trying to fulfil
the needs of the manufacture industries by producing an intermediate chemical production with
an more reliable and can reduce the cost of manufacturing those chemical product.

There are a few ideas that have been short-listed based on brainstorming session among
our team members to increase the production of intermediate chemical to help companies to
produce their product. All those ideas that has been chosen are production of maleic anhydride
made from isobutene, maleic anhydride made from benzene, ethyl benzene, drying oil and
ethylene oxide. In short, maleic anhydride is being used to produce fiber glass which normally
being used in automobile manufacture, to produce rosin adduct which useful for paper sizing
agent and to produce alkyd resin for paint industry. For ethyl benzene, it is usually being use
to make another chemical such as styrene. In addition, drying oil is used as additives to paints
and varnishes to aid in the drying process while for ethylene oxide is a chemical that being
used to make ethylene glycol which is the primary ingredient in antifreeze, polyethylene-oxide
and also polymers. Therefore, all these ideas is being analysed and undergo selection process
by applying screening concept and scoring concept.

Based on the ideas that have been short-listed, the screening concept and scoring concept have
been applied in order to decide the product to be produce. From these concept, the product that
obtained the highest score will be considered to be produce. There is five criteria that have been
considered in order to be choose.
Concept of screening
Maleic Maleic
Anhydride Anhydride Ethyl Ethylene
Drying Oil
made from made from Benzene Oxide
isobutene benzene
Feedstock - + + - +
Market + + + + +
Plant Cost + + - - -
Storage 0 0 0 0 0
Manpower 0 0 0 0 0
Total 1 3 1 -1 1

All criteria for the reference standard are assigned a value of zero, meaning “same as.” The
criteria for all other alternatives are assigned values of +, meaning “better than”; zero; or –,
meaning “worse than.” Then the number of “worse than” is subtracted from the number of
“better than”. The net score for each alternative provides a relative ranking. From the above
result of concept screening for product selection, we can observed that maleic anhydride made
from benzene has the highest number of score, followed by the maleic anhydride made from
isobutene which has the same score as ethyl benzene and ethylene oxide while drying oil has
the least score. Next, all the ideas with positive scores remain in selection process and will
proceed to the next step, which is concept scoring.
Concept of scoring
Maleic Maleic
anhydride anhydride Ethyl Ethylene
Product Weight (%)
made from made from benzene oxide
isobutene benzene
Feedstock 30 3 5 4 4
Market 20 4 4 4 4
Plant cost 20 2 3 3 3
Storage 15 4 4 4 3
manpower 15 3 3 3 3
Total score 3.15 3.95 3.65 3.5
Rank 4 1 2 3

Therefore, maleic anhydride made from benzene is being choose to be produce. Today, maleic
anhydride on of the largest chemical production of saturated polyester resins. These are used
primarily in fibre-reinforced plastics, materials with a wide and growing range of applications
in boating, automobile and construction industries.
2. Selection of Production Routes

Basically, maleic anhydride is produced in a large scale for applications in polymers and
coatings. The raw materials that being used in maleic anhydride production are benzene and
air with the chemical reactions as stated below:

Benzene + Oxygen → Maleic Anhydride + Oxygen + Water


C6H6 + 4.5O2 → C4H2O3 + 2CO2 + 2H2O

Benzene + Oxygen → Carbon Dioxide + Water


C6H6 + 7.5O2 → 6CO2 + 3H2O

Maleic Anhydride + Oxygen → Carbon Dioxide + Water


C4H2O3 + 3O2 → 6O2 + 3H2O

Benzene + Oxygen → Quinone + Water


C6H6 + 1.5O2 → C6H4O2 + 2H2O

Short description of this process, benzene is vaporized in E-601, mixed with compressed air,
then it is being heated in a fired heater H-601, prior to being send to packed-backed catalytic
reactor, R-601. The process of maleic anhydride production is kinetic-controlled and catalyst
is being used in order to speed up the reaction. The catalyst that being used in this process is
the mixture of vanadium and molybdenum oxides on an inert support. Typical inlet reaction
temperatures are in the range of 350°C to 400°C. The catalyst is placed in 25 mm diameter
tubes that are 3.2 long. The size of the catalyst pallet diameter is 5 mm and the maximum
temperature that the catalyst can be exposed to without causing any irreversible damage
(sintering) is 650°C. For every production, there will be an excess reactant in order to increase
product yield at equilibrium. This the case of maleic anhydride production, air which
considered as one of the reactant is kept very high.
Single conversion can be seen through the packed-bed reactor, R-601 which producing maleic
anhydride by the reaction of benzene and air. 42.3 kmol/h benzene and 2890 kmol/h of air
are being fed to R-601 and producing 26.3 kmol/h maleic acid, 2575.9 kmol/h of air,91.2
kmol/h of water, 0.7 kmol/h of quinone and 128.3 kmol/h of carbon dioxide being ejected
through stream 7 as well as 2.6 kmol/h of unreacted benzene.

15

R-601
16

7
3.0 PRELIMINARY DESIGN EQUIPMENT

5.1 Reactor (R-601)

Reactor R-601 used in the plant is a packed bed catalytic reactor. There are four
reactions take place in this reactor. All these four reactions are exothermic which produce a
large amount of heat. The main reaction, which produces maleic anhydride, is:

C6 H6 + 4.5O2 → C4 H2 O3 + 2CO2 + 2H2 O

Due to the large amounts of heat produced in the reactions, a coolant stream is
introduced to the reactor. The coolant stream is molten salt, which is a mixture of sodium nitrate
and sodium nitrite will circulate through the shell of the reactor.

For the design of this reactor, heuristic from Table 11.17 is followed:

1. The rate of reaction in every instance must be established in the laboratory, and the
residence time or space velocity and product distribution eventually must be found from
a pilot plant.
2. Dimensions of catalyst particles are 2 to 5 mm, or 0.078 to 0.197 inches in fixed beds.
3. The effect of temperature on chemical reaction rate is to double the rate every 10℃.
4. Tubular flow reactors are suited to high production rates at short residence times,
seconds or minutes, and when substantial heat transfer is needed. Embedded tubes or
shell-and-tube construction are then used.
5. The value of a catalyst may be to improve selectivity more than to improve the overall
rate of reaction.

5.2 Distillation Column (T-602)


Design specifications
1. Material: stainless steel 6. Reflux ratio = 1.24
2. 21 sieve trays including reboiler 7. 38 cm tray spacing, 3.8 cm weir
and condenser height
3. 65% efficient trays 8. Column height = 9m
4. Feed on tray 10 9. Diameter = 0.9 m
5. Total condenser 10. Design pressure = 110 kPa

Applying heuristics from Table 11.13,


Rule 13 : For towers about 0.9 m diameter, add 1.2 m at the top for vapour
disengagement, and 1.8 m at bottom for liquid level and reboiler return.
Rule 14 : Limit the tower height about 53 m max and L/D should be less than 30.

Based on the design specifications,

The original height of the column is 6 m. Following rule 13, additional 1.2 m at the top and
1.8 m at the bottom have to be added to the column. Therefore;
Column height = 6m + 1.2m + 1.8m = 9m

Based on rule 14, the height of the column is 9m which is less than 53m.
Since the diameter of the column is 0.9m,
∴ L/D = 9/0.9 = 10 < 30

5.3 Heat Exchanger (E-603)


Design specifications
1. Material – stainless steel 4. Area = 1760 m2
2. 1-2 exchanger, floating head 5. Q = 31400 MJ/h
3. Process stream in shell 6. Design pressure = 4100 kPa

Applying heuristic from Table 11.11,


Rule 1 : For conservation estimate set F = 0.9 for shell-and-tube exchangers with no
phase changes, 𝑄 = 𝑈𝐴𝐹∆𝑇𝑙𝑚 .
Rule 6 : Minimum temperature approach is 10℃ for fluids.
Rule 7 : Cooling water inlet is 30℃, maximum outlet 45℃.
Rule 8 : Heat transfer coefficients, U for estimating purposes: gas to gas is 30 W/m2℃.

Rule 6 has been violated because from the stream summary,


∆𝑇𝑚𝑖𝑛 = 270 − 608 = −338℃

From stream summary,


31400𝑀𝐽 1ℎ
𝑄=( )( ) = 8722222𝑊
ℎ 3600𝑠

∆𝑇𝑙𝑚 = 348℃

𝑄 8722222
𝐴= = = 928.29𝑚2
𝑈𝐹∆𝑇𝑙𝑚 (30)(0.9)(348)
The area from the stream summary is 1760 m2. This value is different with the area that
had been calculated by heuristic method. This is because the temperature different is too
high.

5.4 Heater (H-601)


Design specifications
1. Material – stainless steel 4. Area = 1760 m2
2. 1-2 exchanger, floating head 5. Q = 31400 MJ/h
3. Process stream in shell 6. Design pressure = 4100 kPa
Applying heuristic from Table 11.11,
Rule 1 : For conservative estimate set F = 0.9 for shell-and-tube exchanger with no
phase changes, 𝑄 = 𝑈𝐴𝐹∆𝑇𝑙𝑚
Rule 6 : Minimum temperature approach is 10℃ for fluids.
Rule 7 : Cooling water inlet is 30℃ and maximum outlet 45℃.
Rule 8 : Heat transfer coefficient, U for estimating purpose; gas to gas is 30 W/m2℃.

Rule 6 has been violated because from the stream summary,


∆𝑇𝑚𝑖𝑛 = 270 − 608 = −338℃

From stream summary,


31400𝑀𝐽 1ℎ
𝑄=( )( ) = 8722222𝑊
ℎ 3600𝑠

∆𝑇𝑙𝑚 = 348℃

𝑄 8722222
𝐴= = = 928.29𝑚2
𝑈𝐹∆𝑇𝑙𝑚 (30)(0.9)(348)
The area from the stream summary is 1760 m2. This value is different with the area that
had been calculated by heuristic method. This is because the temperature different is
too high.

5.5 Vessel (V-601)


Design specifications
1. Material – carbon steel 4. Orientation – horizontal
2. Column height = 1.5 m 5. Design pressure = 110 kPa
3. Diameter = 0.5 m

Applying heuristics from Table 11.6,


Rule 1 : Drums are relatively small vessels that provide surge capacity or separation of
entrained phases.
Rule 2 : Liquid drums are usually horizontal
Rule 4 : Optimum ratio of length to diameter = 3, but the range 2.5 to 5 is common.

Based on rule 1,
This particular drum is relatively small with the volume of 0.29 m3.
Based on rule 2,
The orientation for this particular drum vessel is horizontal as the feed is benzene in
liquid phase.
Based on rule 4,
L/D = (1.5m/0.5m) = 3
Therefore, design size for vessel V-601 follows the heuristic rule.

5.6 Compressor (C-601)


Design specifications
1. Material – carbon steel 4. Efficiency = 65%
2. Centrifugal/ electric drive 5. Power (shaft) = 3108 kW
3. Discharge pressure = 250 kPa

Applying heuristic from Table 11.10,


𝑃 𝑎
Rule 2 : Theoretical reversible adiabatic power = 𝑚𝑧1 𝑅𝑇1 [({𝑃2 } − 1)] /𝑎
1

Where 𝑇1 is inlet temperature, R = gas constant, 𝑧1 = compressibility, m =


molar flow rate, a = (k-1)/k and k = 𝐶𝑝 /𝐶𝑣 .
𝑃
Rule 3 : Outlet temperature for reversible adiabatic process 𝑇2 = 𝑇1 (𝑃2 )𝑎 .
1
Rule 4 : Exit temperatures should not exceed 167 − 204℃; for diatomic gases
𝐶𝑝
(𝐶 = 1.4). This corresponds to a compression ratio of about 4.
𝑣

From rule 2,
T1 = 303 K P1 = 101 kPa P2 = 250 kPa k = 1.3967 (assume) a = 0.2840
m = 775 mol/s z1 = 1 (assume air in ideal gas condition) R = 8.314 J/mol.K

250 0.2840
(775)(1)(8.314)(303) [({
101} − 1)]
𝑊𝑟𝑒𝑣 𝑎𝑑𝑖𝑎𝑏 = = 2018𝑘𝑊
0.2840

Using a compressor effeciency of 65%,


2018
𝑊𝑎𝑐𝑡𝑢𝑎𝑙 = = 3104.6𝑘𝑊
0.65
Comparing this analysis with the information in the stream summary, the heuristic
analysis consistent to the actual design.

Based on rule 3,

250 0.2840
𝑇2 = 303( ) = 391.95 𝐾
101

Comparing this analysis with information in stream summary, the heuristic analysis is
close to the actual design.

Based on rule 4,

The exit temperature from the compressor in this plant is 𝑇 =170℃. Therefore, it does
not exceed the limit of 167-204℃.

5.7 Heat Exchanger (E-601)


Design specifications
1. Area = 14.6 m2 4. Process stream in tubes
2. Type: 1-2 exchanger, floating 5. Q = 1750 MJ/h
head
3. Material: stainless steel 6. Design pressure = 600 kPa

Applying heuristics from Table 11.11,


Rule 1 : For conservative estimate set F = 0.9 for shell-and-tube exchangers with no
phase changes, 𝑄 = 𝑈𝐴𝐹∆𝑇𝑙𝑚
Rule 6 : Minimum temperature approach is 10℃ for fluids.
Rule 7 : Cooling water inlet is 30℃ and maximum outlet 45℃.
Rule 8 : U = 850 𝑊/𝑚2 . ℃

𝐻𝑇𝑠 + 𝐻𝑇𝑒 𝐶𝑇𝑠 + 𝐶𝑇𝑒 30 + 116 30 + 45


𝐴𝑀𝑇𝐷 = [ ]−[ ]=[ ]−[ ] = 35.5℃
2 2 2 2

1750𝑀𝐽 1ℎ
𝑄= × = 486111𝑊
ℎ 3600𝑠

To find the area,


𝑄 486111
𝐴= = = 17.9𝑚2
𝑈𝐹∆𝑇𝑙𝑚 850 × 0.9 × 35.5

From the calculations that have been made, the heuristic analysis is close to the actual
design. The fact that the minimum approach temperature of 10℃ has been violated
should not cause too much concern.

5.8 Distillation Column (T-601)


Design specifications
1. Material: stainless steel 6. Reflux ratio = 0.189
2. 7 sieve trays including reboiler 7. 61 cm tray spacing, 5 cm weir
and condenser height
3. 50% efficient trays 8. Column height = 5 m
4. Partial condenser 9. Diameter = 2.1 m
5. Feeds on trays 1 and 7 10. Design pressure = 110 kPa

Applying heuristic from Table 11.13,

Rule 14 : Limit the tower height to about 53 m max and L/D should be less than 30.

Applying heuristic from Table 11.14,

Rule 8 : Weir heights are 5 cm.

From rule 14,

The column height is 5 m therefore less than 53 m.

L/D = 5m/2.1m = 2.38 <30

Therefore, both of the design for the size follows the heuristic rule.

From rule 8,

Weir height = 5 cm
d. Recycle Structure

The feed stock that is being recycled is Dibutyl Phthalate. In the block flow diagram,
stream 14 is being recycled. It comes out from Dibutyl Tower Condenser (E-606) and being
recycled to mix with stream 10 which is pure feed of Dibutyl Phthalate. Below is the material
balance on the MA Scrubber reactor that involves with recycle stream.

Recycle Structure: Maleic Anhydride Scrubber (T-601)

Material balance on recycle stream:

Stream 9 = Stream 10 + Stream 14

Stream 9 = 0.1 kmol/h + 500.0 kmol/h

Stream 9 = 500.1 kmol/h

Material balance on MA Scrubber (T-601):

Input = Output

Stream 8 + Stream 9 = Stream 12 + Stream 11

2825.00 kmol/h + 500.1 kmol/h = 2798.9 kmol/h + 526.2 kmol/h

3325.1 kmol/h = 3325.1 kmol/h


e. Downstream Processing

In our production, there are separation occurs at Distillation Column (T-602). The
feed stream 11 consist of Maleic Anhydride, Dibutyl Phthalate, Quinone and Maleic Acid.
The distillation column is used to separate the top product that consist of Maleic Anhydride,
Maleic Acid and Quinone from bottom product that consist of and Dibutyl Phthalate and
Quinone. However, the stream 14 is being recycled to mix with stream 10 that consist of pure
feed of Dibutyl Phthalate.

Product separation: Distillation Column (T-602)

Maleic Anhydride Balance:

Input = Output

Stream 11 = Stream 13 + Stream 14

24.8 kmol/h = 24.8 kmol/h + 0.0 kmol/h

24.8 kmol/h = 24.8 kmol/h

Dibutyl Phthalate Balance:

Stream 11 = Stream 13 + Stream 14

500 kmol/h = 0.0 knol/h + 500.0 kmol/h

500.0 kmol/h = 500.0 kmol/h


Quinone Balance:

Stream 11 = Stream 13 + Stream 14

0.4 kmol/h = 0.4 kmol/h + 1.0 kmol/h

0.4 kmol/h = 1.4 kmol/h

Maleic Acid Balance:

Stream 11 = Stream 13 + Stream 14

1.0 kmol/h = 1.0 kmol/h + 0.0 kmol/h


1.0 kmol/h = 1.0 kmol/h

Material balance on distillation column (T-602):

Stream 11 = Stream 13 + Stream 14

24.8 kmol/h + 500.0 kmol/h + 0.4 kmol/h + 1.0 kmol/h = (24.8 kmol/h + 0.4 kmol/h + 1.0
kmol/h) + 500 kmol/h

526.2 kmol/h = 526.2 kmol/h


Product purification: Purification of Maleic Anhydride

In purification section, stream 13 that comes out from distillation column (T-602) that
contains Maleic Acid, Quinone and Maleic Anhydride is sent to Maleic Anhydride
purification in order to produce pure Maleic Anhydride. However, the purification reactor is
not included in the process flow diagram of our plant.

There are some theory of purification of Maleic Anhydride. The maleic acid that
comes out from stream 13 is impure. It contains mainly of Maleic Acid and small amount of
Quinone. The product in such condition is called raw maleic anhydride. The colouring
substances, not having a well-defined chemical constitution, are called chromogenic
substances. These substances have the same volatility as maleic anhydride, and therefore
cannot be completely separated from the useful product by rectification.

There are some application of Maleic Anhydride. The purified maleic anhydride can
be used in the preparation of resins for varnishes and polyesters which are white in colour,
that does not change in the course of time, particularly upon exposure to light and upon
heating. The colorimetric scale universally adopted by manufacturers for determining the
colour of maleic anhydride is the APHA scale.
Cost calculation
6.1 Bare module cost for each equipment

6.1.1 Reactor (R-601)

(A) Calculation of Cpº

The reactor is considered as a vertical vessel, with assumed sizing of diameter D = 2.17 m,
and length L = 4 m. Thus, the volume is:
D2 (2.17)2
V= π L= π (4) = 14.79 m3
4 4

Referring to Appendix A (Table A.1), for equipment type of vertical process vessel, the
values of K1, K2 and K3 were as follows:

K1 3.4974

K2 0.4485

K3 0.1074

Calculating Cpº from the formula:


log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 3.4974 + 0.4485 log(14.79) + 0.1074 [log10(14.79)]2
Cpº (2011) = $14761.91
(B) Calculation of CBMº

To calculate CBMº, FBM must be first calculated:


FBM = B1 + B2FPFM
To calculate the FBM, indicating at standard conditions and materials, the FM is set as 1 (standard
material of construction Carbon-Steel), while the FP is calculated using the formula for vessel:
(P+1)D
+0.00315
2[850−0.6(P+1)]
FP,vessel = , for tvessel > 0.0063 m
0.0063
Calculating FP for pressure of 1 atm (or 0 barg), the FP calculated is:
2.17
+0.00315
2[850−0.6(1)]
FP,vessel = = 0.70
0.0063
Since Fp,vessel is less than 1, then Fp,vessel =1
From table A.4, value of B1 and B2 for vertical process vessels are:
B1 = 2.25
B2 = 1.82
Therefore, FBM = 2.25 + 1.82(1)(1) = 4.07
Thus, CBMº = CpºFBM = $14761.91(4.07) = $60080.97
This CBMº is based on prices in 2001. To obtain the cost in 2017, the effect of time formula is
used, referring to the Chemical Engineering Plant Cost Index:
I
CBMº,2017 = CBMº,2011 ( 2017)
I2001

I2017 = 562.1, I2001 = 394


Therefore,
562.1
CBMº,2017 = $60080.97 ( ) = $85714.50
394

(C) Calculation of CBM

In calculation of CBMº, the FM and FP are calculated based on the process conditions. For this
process, the reactor is made up of stainless steel material and operating pressure of 300 kPa.
Referring to table A, in Appendix A, the FM for this vertical vessel with Material of Construction
(MOC) of stainless steel (SS) is 3.1, identification number of 20.

The FP is also calculated, by using the same formula shown above during calculation of F P at
standard pressure. Only this time, the pressure is 300 kPa, which is equivalent to 1.98675 barg.

(2.98675)2.17
+0.00315
2[850−0.6(2.98675)]
FP,vessel = = 1.106
0.0063
Since value of B1 and B2 are the same, the value of FBM calculated is:
FBM = 2.25 + 1.82(3.1)(1.106) = 8.49
Thus, CBM = CpºFBM = $14761.91(8.49) = $125328.62

I2017 = 562.1, I2001 = 394


Therefore,
562.1
CBM,2017 = $125328.62 ( ) = $178800
394

6.1.2 Distillation column (T-602)


a) Bare module cost at process condition
Bare module cost for tower
Equation for Bare Module Cost,
𝑪BM =𝑪𝒑°𝑵𝑭BM 𝑭𝒒

The parameter of the tower is Volume of the tower T-602


A is the parameter of tower
Diameter of the tower = 0.9 m
D2 (0.9)2
V= π L= π (9) = 5.726 m3 = A
4 4

Referring to Appendix A (Table A.1), for equipment type of towers, the values of K1, K2 and
K3 were as follows:

K1 3.4974

K2 0.4485

K3 0.1074

Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 3.4974 + 0.4485 log(5.726) + 0.1074 [log10(5.726)]2
Cpº(2001) = $7924.65
562.1
Cpº(2017) = $7924.65 ( )
394

Cpº(2017) = $11305.70
Quantity factor, Fq
Fq =1 for N ≥ 20
From table A.4, value of B1 and B2 for vertical process vessels (including towers) are:
B1 = 2.25
B2 = 1.82
Therefore, FBM = 2.25 + 1.82 FPFM
At pressure of 1 bar, Fp =1
From Table A.3 from textbook,
Identification number: 20
Figure A.18 from textbook,
Fm =3.1

Thus, FBM = 2.25 + 1.82 (1)(3.1) = 7.892

Bare module cost (tower):

𝐶BM =($11305.70)(21)(7.892)(1)

𝑪BM =$1920050.82

Bare module cost for trays


Equation for Bare Module Cost,
𝑪BM =𝑪𝒑°𝑵𝑭BM 𝑭𝒒
Referring to Appendix A (Table A.1), for equipment type of trays (sieve), the values of K1,
K2 and K3 were as follows:

K1 2.9949

K2 0.4465

K3 0.3961

(0.9)2
Area of tray, A = π = 0.6362 m2
4
Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 2.9949 + 0.4465 log(0.6362) + 0.3961 [log10(0.6362)]2
Cpº (2001) = $836.536
562.1
Cpº(2017) = $836.536 ( )
394

Cpº(2017) = $1193.44
Quantity factor, Fq
Fq =1
From table A.6,
Identification number = 61
And from figure A.19,
FBM = 1.8
Bare module Cost for tray (CBM)
CBM = ($1193.44)(21)(1)(1.8)
CBM = $45112.03
Total bare module cost for tray and tower:
CBM (tower + tray) = $1920050.82 + $45112.03
CBM = $1965162.85

b) Bare module cost at base condition


Bare module cost for tower
Pressure factor
Fp = 1
Material Factor
FM =1
Quantity Factor
Fq =1
FBM = 2.25 + 1.82 FmFp
FBM = 2.25 + 1.82 (1)(1)
FBM = 4.07
𝑪BM° =𝑪𝒑°𝑵𝑭BM 𝑭𝒒
𝐶BM° = ($11305.70)(21)(4.07)(1)
𝐶BM° =$966298.18
Bare module cost for trays:
𝐶BM° = $45112.03
Total bare module cost for tray and tower:
CBM,TOTALº =$966298.18 + $45112.03
CBM,TOTALº = $1011410.21
6.1.3 Heat exchanger (E-603)
A = 928.29 m2
1-2 exchanger, floating head, stainless steel
Process stream in shell
Q = 31400 MJ/h
Design pressure = 4100 kPa

a) Bare module cost at process condition


Referring to Appendix A (Table A.1), for equipment heat exchanger (floating head), the
values of K1, K2 and K3 were as follows:

K1 4.8306

K2 -0.8509

K3 0.3187

Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cp = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cp = 4.8306 - 0.8509log(928.29) + 0.3187 [log10(928.29)]2
Cp = $129489.79

Based on equipment type of heat exchanger (floating head) at table A.2 from textbook,

C1 0.03881

C2 -0.11272

C3 0.08183

log10 Fp = C1 + C2 log(P) + C3 [log10(P)]2


log10 Fp = 0.03881 - 0.11272 log(40) + 0.08183 [log10(40)]2
Fp = 1.1
Based on table A.3 from textbook,
Identification number = 2
𝐹M =1.4
From table A.4, value of B1 and B2 for heat exchanger (floating head) are:
B1 = 1.63 and B2 = 1.66
CBM(2001) = 𝐶𝑝 FBM
CBM(2001) = 𝐶𝑝 (B1 + B2FpFM)
CBM(2001) = $129489.79 (1.63 + 1.66(1.1) (1.4)) = $542096.06
Cp(2017) I(2017)
=
Cp(2001) I(2001)

562.1
(2017)= ($542096.06) = $773381.21
394

𝐶BM (2017)= $773381.21(1.63 + 1.66(1.1)(1.4)) = $3237683.10


b) Bare module cost at base condition
𝐶BM(2017)(𝑎𝑡 𝑏𝑎𝑠𝑒 𝑐𝑜𝑛𝑑𝑖𝑡𝑖𝑜𝑛) =$773381.21(1.63+ 1.66(1)(1)) = $2544424.18
6.1.4 Heater (H-601)
a) Bare module cost for both at process and base conditions
Total (process) heat duty required = 363.7 kW
Design capacity = 32,000 kW
Carbon steel tubes
85% thermal efficiency
Design pressure = 300 kPa
Referring to Appendix A (Table A.), for equipment type of heater (steam boiler), the values
of K1, K2 and K3 were as follows:

K1 6.9617

K2 -1.48

K3 0.3161

Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 6.9617 – 1.48 log(363.7) + 0.3161 [log10(363.7)]2
Cpº (2001) = $175628.87
For latest Cpº (2017) = $175628.87 (576/394) = $256756.93
Based on equipment type of heaters (steam boiler) at table A.2 from textbook,

C1 0

C2 0
C3 0

log10 Fp = C1 + C2 log(P) + C3 [log10(P)]2


log10 Fp = 0 – 0 log(3) + 0 [log10(0)]2
Fp = 1
(equation A.3 from textbook),
Fp = 1 , P < 20
No of Identification = 53
FBM = 2.2 (Figure A.19 from textbook)
FT = 1 + 0.00184T – 0.00000335(T)2
(Table A.5 from textbook) ,
FT = 1 + 0.00184(460-153) – 0.00000335(460-153)2
FT = 1.2031
CBM = CpºFBM FpFTCBM = ($256756.93)(2.2)(1)(1.2031) = $679589.38

6.1.5 Vessel (V-601)


a) Bare module cost for both at process and base conditions
CBMº = 𝐶𝑝º(B1 + B2FpFM)
From table A.4, value of B1 and B2 for horizontal process vessels are:
B1 = 1.49 and B2 = 1.52
Based on figure A.18 from textbook,
Fp =1, FM = 1
Referring to Appendix A (Table A.), for equipment type of process vessel (horizontal), the
values of K1, K2 and K3 were as follows:

K1 3.5565

K2 0.3776

K3 0.0905
A = 0.29 m2
Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 3.5565 + 0.3776 log(0.29) + 0.0905 [log10(0.29)]2
Cpº = $2396.94
To calculate CBM
CBMº = 𝐶𝑝º(B1 + B2FpFM)
CBMº = $2396.94(1.49 + 1.52(1)(1)) = $7214.79
Cp°(2017) I(2017)
=
Cp°(2001) I(2001)

562.1
°(2017)= ($2396.94) = $3419.59
394

CBM = (B1 + B2FpFM)


CBM = $3419.59 (1.49 +1.52(1)(1)) = $10292.97
6.1.6 Compressor (C-601)
a) Bare module cost for both at process and base conditions
Compressor
1. Material – carbon steel
2. Centrifugal/electric drive
3. Discharge pressure = 250 kPa
4. Efficiency = 65%
5. Molar flow inlet = 33.89 mol/s
6. Design power (shaft) = 135.766 kW
Design power calculation:
𝑃2
Wrev = mz1RT1[( )a – 1] / a
𝑃1

m = 33.89 mol/s
𝑧1= 1 (assume air in ideal gas condition)
R = 8.314 J/mol.K
𝑇1 = 303K, 𝑃1 = 101 kPa, 𝑃2 = 250 kPa, 𝑘 = 1.3967 (assume), 𝑎 = 0.2840
𝑃2
Wrev = mz1RT1[( )a – 1] / a
𝑃1

Wrev = (33.89)(8.314)[(250/101)0.2840 -1] / 0.2840 = 88.248 kW


Using a compressor efficiency of 65%
100
Wshaft = 88.248 ( ) = 135.766 kW
65

CBM = 𝐶𝑝º(B1 + B2FpFM)


Referring to Appendix A (Table A.1), for equipment type of compressor (centrifugal), the
values of K1, K2 and K3 were as follows:

K1 2.2897

K2 1.3604

K3 -0.1027
A = 135.766 kW
Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 2.2897 + 1.3604 log(135.766) – 0.1027 [log10(135.766)]2
Cpº = $52964.81
The value of 𝐹BM is taken from the table A.3 from textbook
𝐹BM = 2.8
Cp°(2017) I(2017)
=
Cp°(2001) I(2001)

562.1
°(2017)= ($52964.81) = $75562.23
394

𝐶BM= 𝐶p°𝐹BM = $75562.23(2.8) = $211574.24


6.1.7 Heat exchanger (E-601)
Design specifications:
1. Area = 14.6 m2
2. Type - 1-2 exchanger, floating head,
3. Material - stainless steel
4. Process stream in tubes
5. Q = 1750 MJ/h
6. Design pressure = 600 kPa
a) Bare module cost at process condition
Referring to Appendix A (Table A.1), for equipment type of heat exchanger (floating head),
the values of K1, K2 and K3 were as follows:

K1 4.8306

K2 -0.8509
K3 0.3187

Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cp = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cp = 4.8306 - 0.8509 log(14.6) + 0.3187 [log10(14.6)]2
Cp = $18706.8
Based on equipment type of heat exchanger (floating head) at table A.2 from textbook,

C1 0

C2 0

C3 0

log10 Fp = C1 + C2 log(P) + C3 [log10(P)]2


log10 Fp = 0 – 0 log(3) + 0 [log10(0)]2
Fp = 1
FM = 1.4
From table A.4, value of B1 and B2 for heat exchanger (floating head) are:
B1 = 1.63
B2 = 1.66
𝐶BM= 𝐶p𝐹BM = (B1 + B2FpFM)
𝐶BM (2001) = $18706.8(1.63 + 1.66(1)(1.4)) = $73966.69
Cp°(2017) I(2017)
=
Cp°(2001) I(2001)

562.1
(2017)= ($73966.69) = $105524.56
394

𝐶BM (2017)= 𝐶p𝐹BM = $105524.56(3.95) = $416822.01


b) Bare module cost at base condition
Fp = 1, FM = 1, B1 = 1.63, B2 = 1.66
𝐶BM°= 𝐶p𝐹BM = (B1 + B2FpFM)
𝐶BM° = $18706.8(1.63 + 1.66(1)(1)) = $61545.37
𝐶𝐵𝑀 °(2017) I(2017)
=
𝐶𝐵𝑀 °(2001) I(2001)

562.1
𝐶BM°(2017)= ($61545.37) = $87803.69
394

𝐶BM°(2017) = $87803.69(3.29) = $288874.14

6.1.8 Distillation column (T-601)


a) Bare module cost at process condition
Bare module cost for tower
Equation for Bare Module Cost:
𝑪BM =𝑪𝒑°𝑵𝑭BM 𝑭𝒒
Referring to Appendix A (Table A.1), for equipment type of towers, the values of K1, K2 and
K3 were as follows:

K1 3.4974

K2 0.4485

K3 0.1074

The parameter of the tower is volume of the tower T-601


A is the parameter of tower
Diameter of the tower = 2.1 m
D2 (2.1)2
V= π L= π (5) = 17.318 m3 = A
4 4

Equation of purchased cost of the equipment, based on equation A.1 from Appendix A:
log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2
log10 Cpº = 3.4974 + 0.4485 log(17.318) + 0.1074 [log10(17.318)]2
Cpº (2001) = $16504.58
562.1
Cpº(2017) = $16504.58 ( )
394

Cpº(2017) = $23546.25

Quantity factor, Fq
log10 Fq =0.4771 +0.08516 log10 N -0.3473 (log10N)2 for N<20
N = number of trays = 7 (in this tower)
Log10 Fq =0.4771 +0.08516 log10 (7) -0.3473 (log107)2
Fq =2
Equation A.4 from textbook (Bare Module Factor)
FBM = (B1 + B2FpFM)
From table A.4, value of B1 and B2 for vertical process vessels (including towers) are:
B1 = 2.25
B2 = 1.82
Therefore, FBM = 2.25 + 1.82 FPFM
Calculate pressure factor
P = 1.1 barg – 1 bar = 0.1 barg
(0.1+1)2.1
+0.00315
2[850−1.2(0.1+1)]
FP,vessel = = 0.7160
0.0063
From Table A.3 from textbook,
Identification number: 20
Figure A.18 from textbook,
Fm =3.1

Thus, FBM = 2.25 + 1.82 (0.7160)(3.1) = 6.289

Bare module cost (tower)

𝐶BM =($23546.25)(7)(6.289)(2)

𝑪BM =$2073153.13

Bare module cost for trays

Equation for Bare Module Cost,


𝑪BM =𝑪𝒑°𝑵𝑭BM 𝑭𝒒

A is the parameter of trays


The parameter of the tray is area
(d)2 (2.1)2
Area of tray, A = π =π = 3.4636 m2 = parameter of tray
4 4
Referring to Appendix A (Table A.), for equipment type of trays (sieve), the values of K1, K2
and K3 were as follows:

K1 2.9949

K2 0.4465

K3 0.3961

log10 Cpº = K1 + K2 log(A) + K3 [log10(A)]2


log10 Cpº = 2.9949 + 0.4465 log(3.4636) + 0.3961 [log10(3.4636)]2
Cpº (2001) = $2244.40
562.1
Cpº(2017) = $2244.40 ( )
394

Cpº(2017) = $3201.97
Quantity factor, Fq
log10 Fq =0.4771 +0.08516 log10 N -0.3473 (log10N)2 for N<20
N = number of trays = 7 (in this tower)
Log10 Fq =0.4771 +0.08516 log10 (7) - 0.3473 (log107)2
Fq =2
(Table A6 from textbook)

Identification number= 61

(Figure A19 from textbook)

FBM = 1.8

Bare module Cost for tray (CBM)

CBM = ($3201.97)(7)(2)(1.8)

CBM = $80689.64

Total bare module cost for tray and tower:

CBM (tower + tray) = $2073153.13 + $80689.64

CBM = $2153842.77

b) Bare module cost at base condition


Bare module cost for tower

(0.03125+1)2.1
+0.00315
2[850−1.2(0.03125+1)]
FP,vessel = = 0.6989
0.0063

FBM = 2.25 + 1.82 FPFM


FBM = 2.25 + 1.82 (3.1)(0.6989) = 6.1932
𝑪BM =𝑪𝒑°𝑵𝑭BM 𝑭𝒒

𝐶𝐵𝑀 ° = ($23546.25)(7)(6.1932)(2) = $2041572.90

Bare module cost for trays

𝐶BM ° = $80689.64

Total bare module cost for tray and tower:


CBM,TOTALº = $2041572.90 + $80689.64 = $2122262.54

6.2 Grassroots cost calculation


CBM (at process
No Main equipment CBM °(at base condition)
condition)
1 C-601 $211574.24 $211574.24
2 E-601 $288874.14 $416822.01
3 E-603 $2544424.18 $3237683.10
4 H-601 $679589.38 $679589.38
5 R-601 $85714.50 $178800
6 T-601 $2122262.54 $2153842.77
7 T-602 $1011410.21 $1965162.85
8 V-601 $10292.97 $10292.97
TOTAL $6954142.16 $8853767.32
Table 1: Purchase cost for main equipment

CBM (at process


No Other Equipments CBM °(at base condition)
condition)
1 E-602 $70103.81 $146470.94
2 E-604 $268223.80 $498293.00
3 E-605 $94386.48 $197205.78
4 E-606 $63456.57 $117886.50
5 E-607 $116529.23 $224419.72
6 P-601 $14906.71 $14906.71
7 P-602 $17533.27 $21063.92
8 P-603 $7422.81 $11752.84
9 P-604 $10057.9 $15919.76
10 P-605 $17896.89 $21245.91
11 P-606 $19953.85 $23687.79
12 V-602 $354207.99 $729831.47
13 V-603 $32827.61 $66145.69
TOTAL $1087506.48 $2088833.03
Table 2: Purchase cost for other equipment
Total bare module cost at process condition, CBM (TOTAL) :
CBM (TOTAL) = CBM (MAJOR EQUIPMENT) + CBM (OTHER EQUIPMENT)
CBM (TOTAL) = $8853767.32 + $2088833.03
CBM (TOTAL) = $10942600.35
Total bare module cost at base condition, CBMº(TOTAL):

CBMº (TOTAL) = CBM°(MAJOR EQUIPMENT) + CBM°(OTHER EQUIPMENT)

CBM°(TOTAL) = $6954142.16$ + $1087506.48

CBM°(TOTAL) = $8041648.64

Total Module Cost, CTM :

CTM = 1.18 Σ CBM

CTM = 1.18 ($10942600.35)


CTM = $12912268.41
Grassroots Cost, CGR :

CGR = CTM + 0.5 CBM° (TOTAL)

CGR =$12912268.41 + 0.5 ($8041648.64)


CGR = $16933092.73
Conversion $ into RM:
𝑅𝑀4.43
$16933092.73 ×
$1.00

= RM 75,013,600
6.3 Manufacturing cost per year

6.3.1 Cost for utilities, CUT

The function of utilities are to assist the main process stream to complete. In
industries, the most typical utilities used are electrically, mainly for pumps, compressor and
drives, cooling water, saturated steam and boiler feed water. Every each of these utilities
has their own cost to bare. True cost of utilities can be complicated to calculate, thus this
section will shows the calculations for the cost of supply of the utility.

1. Heat Exchanger Utility Streams

The medium used for heat transfer from or to the main process stream in heat
exchangers are cooling water, boiler feed water and saturated steam. Fired heaters, use
fuel gases to help heat up the main process stream directly. In the production of maleic
anhydride from benzene process, a total of six heat exchangers and one fired heater is
used. The utility costs for all of these equipment are calculated in the table below. The
formula for calculating cost is:

24ℎ𝑟 365 𝑑𝑎𝑦


𝐶𝑜𝑠𝑡 = 𝑄 ∗ 𝐶𝑜𝑠𝑡𝑈𝑡𝑖𝑙𝑖𝑡𝑦 𝑆𝑡𝑟𝑒𝑎𝑚 ∗ ( . )
1 𝑑𝑎𝑦 1 𝑦𝑒𝑎𝑟

Where:

- Q is heat duty of heat exchanger or fired heater in GJ/hr, or flowrate of boiler


feed water in kg/hr
- Costutilitystream is the standard cost of the utility stream supply per GJ, or per 1000
kg for boiler feed water
Equipment Type of Utility Used Cost of Utility ($ per GJ)/ Heat Duty/ Yearly Cost
($ per 1000kg) Flowrate (in $)

E-601 Low Pressurized Steam (lps) 14.05 $ per GJ 1.750 GJ/hr 156376.5

E-602 Boiler Feed Water (bfw) 2.45 $ per 1000 kg 7295 kg/hr 113670.7

E-603 Boiler Feed Water (bfw) 2.45 $ per 1000 kg 13717 kg/hr 213738.3

E-604 Cooling Water (cw) 0.354 $ per GJ 86.9 GJ/hr 195650.1

E-605 Hot Pressurized Steam (hps) 17.70 $ per GJ 19.15 GJ/hr 2155754

E-606 Cooling Water (cw) 0.354 $ per GJ 3.05 GJ/hr 6866.892

H-601 Natural Gas (fuel) 11.1 $ per GJ 2.68 GJ/hr 189197.3

Ʃ of cost 3031254

CHE = $3.0312x106 x (RM 4.09/$ 1.00) = RM 12,397,608

2. Electricity

Most of the equipment in the plant requires work, for instance compressors, pumps and
drives. Thus, the amount of work, or power is required to run these equipment is used as a
base for calculation of electricity utility. Electric cost for the usage of those equipment used
in the process are shown in table below. The formula used:

𝑊 24ℎ𝑟 365 𝑑𝑎𝑦


𝐶𝑜𝑠𝑡 = 𝜀
∗ 𝐶𝑜𝑠𝑡𝑒𝑙𝑒𝑐𝑡𝑟𝑖𝑐 ∗ (1 𝑑𝑎𝑦 .
1 𝑦𝑒𝑎𝑟
)

Where:

- W is power used by equipment in kW


- ɛ is the efficiency of the equipment

- Costelectric is the cost of electric in $ per kWh

Equipment Work, W in kW Efficiency, ɛ Cost of electric (RM cents per Yearly cost
kWh)
C-101 3108 0.65 18429962

P-601 0.3 0.65 1778.95

P-602 3.8 0.65 22533.42


0.44
P-603 0.1 0.65 592.98

P-604 6.75 0.65 40026.46

P-605 0.7 0.65 4150.89

P-606 2.4 0.65 14231.63

D-601* 3200 0.98 12585795.92

Ʃ of cost 31099072.25
*the drive D-601 is not shown in the process flow diagram PFD

Therefore, the total utility cost, CUT is the total cost of electric summed up with cost
of heat exchanger and fired heater stream utilities.

CUT = RM 12,397,608 + RM 31,099,072.25 = RM 43,496,680.25


6.3.2 Cost for labour, COL

Alkayat and Gerrard has correlated the technique used to calculate operating labor requirements.
Based on this method, the equation for the operating labor requirement for a chemical processing
plant is given by:

NOL= (6.29 + 31.7P2 + 0.23Nnp)0.5

Where ;

NOL is the number of operators per shift,

P is the number of processing step involving the handling of particulate solids,

Nnp is the number of nonparticulate processing steps handling steps includes compression,
heating and cooling, mixing, and reaction.

Nnp = ∑ 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡

Equipment type Number of equipment Nnp

Compressor 1 1

Tower 2 2

Reactor 1 1
Heater 1 1

Heat Exchanger 2 2

Vessel 1 -

Pump 4 -

Total 12 7

Hence, when Nnp is equal to 7, the number of operating labor requirement is

NOL = [6.29 + 31.7(0)2 + 0.23(7)]0.5


NOL = 2.81
The value of NOL is the number of operators required to run the process unit per shift. A

single operator works on the average 49 weeks (3 week time off for vacation and sick leave)

a year, five 8-hour shift a week. = 49 week/year × 5 shift/week

= 245 shifts per operator/year

A chemical plant operates 24 hours per day. This requires (365 days/year × 3 shift/day)
1095 operating shifts per year. The number of operators needed to provide this number of
shifts is

The number of operators = 1095 shift/year ÷ 245 shifts per operator/year

= 4.5 operators

Hence,

The operating labor = NOL × 4.5 operators

= 2.81 × 4.5

= 12.65 ≈ 13

The cost of operating labor, COL is equal to the salary given to each of operator yearly which
in this case the yearly salary given is $ 20 000

COL = $ 20 000 × 13

= $ 260 000.00

COL = $ 260 000 × (RM 4.43/$ 1.00)

= RM 1 151 800.00
6.3.3 Cost for raw material, CRM

Raw Material : Benzene

According to Platts Global Petrochemical Index, the latest global Benzene index is $785.52
per metric ton (/mt) in October 2017.

So,

$785.52 / mt = 785.52 * 1 mt/1000 kg

= $ 0.785 / kg

Total Benzene used in this process: 145.23 kg/hr = 1272214.8 kg / year

CRM = $ 0.785 / kg x 1272214.8 kg / year

= $ 998688.62 / year

= RM 4084636.46/ year

6.4 Land cost approximation

Industrial land located at Bukit Raja, Klang Selangor currently cost at RM 160.00/ft2.
The estimated land size required for construction of this plant is 16145.87 ft2 based
on 1000 ton production per year.
Land cost = area × price
= RM 160.00/ft2 × 16145.87 ft2
= RM 2583339.20

6.5 Working capital calculation

Total capital investment = Fixed capital + Working capital (20% from fixed capital investment)

Fixed capital = Grassroots cost + land cost


= RM 91,145,594 + RM 2583339.20
= RM 93,728,933.20

Total capital investment = RM 93,728,933.20 + (0.2 × RM 93,728,933.20)


= RM 112,474,719.80

6.6 Revenue per year and salvage value approximation

Revenue per year is estimated to be RM 150,000,000.

Salvage value is assumed to be zero.

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