SCHOOL OF CHEMICAL ENGINEERING
ASSESSMENT COVER SHEET
Student Name: Quoc Anh Nguyen
Student ID: 1697736
Course (eg Materials I)
Calender No. (eg Chem Eng 1003)
Assessment Title (eg pollution today) Assignment 5
Lecturer/Tutor
OFFICE USE ONLY
Date Received
KEEP A COPY:
Please be sure to make a copy of your work. If you have submitted assessment work electronically
make sure you have a backup copy.
PLAGIARISM AND COLLUSION:
Plagiarism: Using another person’s ideas, designs, word or works without appropriate
acknowledgement.
Collusion: Another person assisting in the production of an assessment submission without the
express requirement, or consent or knowledge of the assessor.
CONSEQUENCES OF PLAGIARISM AND COLLUSION:
Penalties associated with plagiarism and collusion are design to impose sanctions on offenders that
reflect the seriousness of the University’s commitment to academic integrity. Penalties may include:
the requirement to revise and resubmit assessment work, receiving a result of zero for the
assessment work, failing the course, expulsion and/or receiving a financial penalty.
I declare that all material in this assessment is my own work except where there is clear acknowledgement
and reference to the work of others. I have read the University Policy Statement on Plagiarism, Collusion and
Related Forms on Cheating ([Link] I give permission for my
assessment work to be reproduced and submitted to other academic staff for the purposes of assessment
and to be copied, submitted and retained in a form suitable for electronic checking of plagiarism.
Signed: Date: 1/06/2020
Question 1.
a.
Item Relative Purchase Purchase Scale up Installed Scaled Updated
capacity cost($) year factor cost scale
factor cost($) cost($)
Compressor 120 900000 2013 0.7 2.5 79216 908596
5
Condenser 80 270000 2010 0.5 3.7 30186 391399
9
Accumulato 100 200000 2014 0.6 4 20000 222667
r 0
Economiser 75 80000 2011 0.6 4 95072 118485
Suction 150 80000 2015 0.6 4 62724 68464
drum
Updated Installed
Installed
Item Quantity scale cost factor
cost ($)
cost($) ($)
Compressor 1 908596 2.5 2271490
Condenser 1 391399 3.7 1448175
Accumulator 1 222667 4 890667
Economiser 1 118485 4 473942
Suction drum 2 68464 4 547709
Direct cost 5631983
Indirect cost 1407996
Direct plus Indirect cost 7039978
Contingency 1055997
Total capital cost 8095975
Example
Compressor
Scaled cost:
0.7
100
scaled cost of compressor=900000 x
120 ( ) =792165($)
Updated scale cost:
835
updated scale cost ( 2020 ) =792165 x =908596( $)
728
Installed cost:
installed cost=1 x 908596 x 2.5=2271490($)
Indirect cost:
indirect cost=0.25 xdirect cost=0.25 x 5631983=1407996($)
Direct plus Indirect cost
direct plus indirect cost=1407996+5631983=7039978($)
Contingency:
constigency =15 %x direct plusindirect cost=7039978 x 15 %=1055997 ($)
Total capital cost:
total capital cost =constigency +direct plus indirect cost=1055997+7039978=8095975($)
b. The capital cost estimated here is study estimate, as the estimate contains equipment costs
and installation factors.
c. The typical accuracy of Order of magnitude estimate (OOM) is about ±20 to ±30%.
d. The study estimate typically has 0.1 to 0.2 % cost to produce.
e. Assume the maintenance cost = 4% of the fixed capital investment:
maintenance cost=4 %x ¿ capital investment =direct plus indirect costx 5 %=7039978 x 5 %=352000(
Question 2.
Mass balance around the tur deaerator:
The deaerator uses 3 tonnes of LP steam per 100 tonnes of boiler feedwater
¿> ṁ steam¿ deaerator ¿ =3/100
ṁ boiler feedwater
ṁcondensate
100−3 97
ṁboiler feedwater= =
100 100
100 t
ṁboiler feedwater = x 291=300 ( )
97 d
t
ṁ steam¿ deaerator ¿=ṁ boiler feedwater −ṁ condensate =300−291=9( )
d
t
ṁ HP steam =291+9=300( )
d
The incremental steam consumption for the TA is 0.16 t/d per net KW generated, thus the power
generated can be calculated as:
300 kWh
powergenerated= =1875 ( kW )=45000( )
0.16 d
-300 t/d
-291 t/d
-300t/d -291 t/d
-9 t/d
-300 t/d
-300 t/d
Incremental saving
300t/d steam @ 25$/t= 300x25=7500($)
Total incremental saving=7500($)
Incremental cost
Purchase power 45000 kWh @ 0.19$/kWh= 8550 ($)
Additional raw material 2.4t/d @ 800$/t= 1920($)
Total incremental cost 10470($)
Decision
as the Total incremental cost > Total incremental saving => do not to proceed with proposal.
The decision is clear cut as the difference between the Total incremental cost and the Total
incremental saving is larger than 10% of the Total incremental cost.
If the turbo-alternator was operating at full capacity and 100 t/d of HP steam was being let-
down and desuperheated to satisfy the LP steam demand
ṁ HP steam¿ desuperheter ¿=100 ( dt )=¿ ṁ LP steam =
100
0.8
t
=125 ( )
d
t
¿> ṁ HP steam ¿ TA ¿=300−125=175 ( )
d
t
¿> ṁ HP steam =100+175=275( )
d
The power generated can be calculated as:
175
powergenerated=ṁ HP steam ¿ TA ¿ = =1094 ( kW ) =26250(kWh)
0.16 0.16
-275 t/d -100 t/d
-125 t/d
-175 t/d
-291 t/d
-175 t/d -300 t/d -291 t/d
-9 t/d
-300 t/d
Incremental saving
275 t/d steam @ 25$/t= 275x25= 6875($)
Total incremental saving=6875($)
Incremental cost
Purchase power 26250 kWh @ 0.19$/kWh= 4987.5 ($)
Additional raw material 2.4t/d @ 800$/t=1920 ($)
Total incremental cost 6907.5($)
Decision: as the Total incremental cost > Total incremental saving => do not to proceed with
proposal.
The decision is not clear cut as the difference between the total incremental cost and the total
incremental saving is larger than 10% of the Total incremental cost.
Question 3.
The annual maintenance cost is 5% of the capital cost
maintenance cost=0.05 x 6000000=300000( $)
Operating supplies and expenses for the replacement TA are $250,000 per annum
The average power requirement over a 365-day year is 10 MW for processing LP steam=>
the power cost for processing LP steam= 10 x 1000 x 0.08 x 24 x 365=700800($ )
The replacement TA generates 125 kWh of net AC power per tonne of HP steam, thus maximum
7 x 1000 t
steam capacity of TA= =1344 ( )
125/24 d
¿ 4 ṁcondensate
ṁsteam¿ deaerator = =¿ =96 /100
ṁboiler feedwater 100 ṁboiler feedwater
t
ṁcondensate =1680( )
d
ṁ condensate x 100 100 t
ṁboiler feedwater = =1680 x =1750( )
96 96 d
t
ṁ steam¿ deaerator ¿=1750−1680=70( )
d
ṁ HP steam : ṁ LP steam produced by desuperheter :ṁ boiler feedwater ¿ desuperheater ¿=1:1.25 :0.25
Case 1 if everything go through the desuperheater
t
ṁ LP steam produced by desuperheter =1750( )
d
1750 t
ṁ HP steam = =1400( )
1.25 d
1750
ṁboiler feedwater ¿ desuperheater ¿= =350 ($)
5
-1400t/d
-350 t/d -1750t/d
-70t/d
-1680t/d
-1750t/d
Incremental HP steam cost=1400 t/d steam @ 20$/t= 1400x20=28000($/d)
Installed cost $ 6,000,000
Maintenance $ 300,000
Other expenses $ 250,000
Incremental HP steam
cost $ 12,182,240
Power cost for LP $ 7,008,000
Power cost for AC $ -
Pretax operating cost $ 25,740,240
Case 1 the AC function at maximum capacity go through the desuperheater
t
ṁ HP steam¿ TA ¿=1344 ( )
d
-325t/d
-1669t/d
-1344t/d
-406t/d
-1344t/d
-1750t/d -70t/d
-1680t/d
-1750t/d
t
ṁ LP steam produced by desuperheter =1750−1344=406 ( )
d
406 t
ṁ HP steam = =325( )
1.25 d
ṁHP steam =325+1344=1669($)
Incremental HP steam cost=1669 t/d steam @ 20$/t= 1669x20=33376($/d)
Power cost for AC=7000x24x0.08x365= 4905600
Installed cost $ 6,000,000
Maintenance $ 300,000
Other expenses $ 250,000
Incremental HP steam $ 12,182,240
cost
Power cost for LP $ 7,008,000
Power cost for AC $ 4,905,600
Pretax operating cost $ 30,645,840
Question 4.
Given
Loan value LV= 30000$
Loan tenure n=5 years
Interest rate i=5%
Let the equivalent interest rate be i equv
Let monthly repayment be R
Ignorance of any loan fees and charges
Loan interest:
loan interest =LVxnxi=30000 x 5 x 0.05=7500 ( $ )
Total repayment:
total repayment=loan value+ loan interest=30000+ 7500=37500( $)
Annual repayment:
37500 $
anual repayment= =7500( )
5 year
Monthly repayment:
7500 $
R= =625 ( )
12 year
5 year=60 month
Use the mortgage calculation method:
R [ 1−( 1+i )−n ] 625 [ 1−( 1+ i )−60 ]
i= =¿ i=
LV 30000
Using trial and error methods 2 with the value of “I” initial trial twice the simple interest rate period=
2x0.05/12=0.00833
The exact solution i=0.00763
The equivalent annual rate:
i equv =( 1+i )12 −1=( 1+0.00763 )12−1=0.0955=9.55 %
Thus, the equilibrium interest rate per annum is 9.55%
Question 5.
Given
Rate of interest per annum i=6.5%
Growth rate g= 5%
Number of year n=10 years
Let X be the first year investment.
Future value FV=250000$
Future value of growing annuity of payment at 5%:
X
FV = [ ( 1+i )n−( 1+ g )n ]
(i−g)
X
¿>250000=
0.065−0.05
[ ( 1+ 0.065 )10−( 1+0.05 )10 ]
X
¿>250000= [ 1.06510−1.0510 ]
0.01 5
X
¿>250000= [ 1.06510−1.0510 ]
0.01 5
250000
¿>250000=Xx 16.55=¿ X= =15106( $)
16.55
Thus, the investment value in first year is 151056$
First year
Interest=0
Total investment1=first year investment=15106 ($)
Second year
Interest:
Interest 2= Xxi=15106 x 0.065=982($ )
Second year investment:
second year investment =first year investmentx 0.05=15106 x 0.05=15861($)
Total investment in second year:
total investment 2=total investment 1+ second year investment + Interest 2=15106 +15861+ 982=31950(
Third year
Interest:
Interest 3=total investment 2 xi=31950 x 0.065=2077( $)
Third year investment:
second year investment =second year investmentx 0.05=15861 x 0.05=16655($)
Total investment in third year:
total investment 3=total investment 2+ third year investment + Interest 3=16655+2077+ 31950=50681($
………………………………
Last year
Interest:
Interest 10=total investment 9 xi=212737 x 0.065=13828($)
Tenth year investment:
tenth year investment=nighth year investmentx 0.05=22319 x 0.05=23435($)
Total investment in tenth year:
total investment 10=total investment 9+ tenth year investment + Interest 10=212737+23435+13828=2500
Year Annual Interest Investment
investment total
0 15106 15106
1 15861 982 31950
2 16655 2077 50681
3 17487 3294 71462
4 18362 4645 94469
5 19280 6140 119889
6 20244 7793 147926
7 21256 9615 178797
8 22319 11622 212737
9 23435 13828 250000