Economic Analysis

For this process it was determined that the COMd is $116.79 million. The fixed capital cost (FCIL) of process was found to be $3.97 million with a working capital of $9.69 million. The total cost of the raw materials (CRM), propylene and benzene, is $92.79 million. The process, which has benzene and di-isopropyl benzene as waste products, has a waste treatment cost (CWT) of $981,000. The total utilities cost (CUT) for the process was found to be $361,000. The total cost of labor (COL) was found to be $106,000. A total summary for the cost of manufacturing can be found in the file CAPCOSTanalysis.xlsx.

The revenue generated from the sale of cumene is $134.25 million dollars. Completing a cash flow analysis on the process shows the generation of a profit in year four of operation with a cash flow of $4.03 million. At the end of 12 years (2 years for construction and 10 years of operation) proposed plant would have a net present value (NPV) of $53.11 million. The discounted cash flow rate of return (DCFROR) is 63.11%. Based on the Monte Carlo Analysis of the NPV there is a 26% chance that the proposed process will not turn a profit. The median NPV is $39 million. Approximately 58% of the calculated values lie above the projected NPV for the process, $53.11 million. The summary for the Cash Flow and Monte Carlo analyses can also be found in CAPCOSTanalysis.xlsx.