DECLERATION

“Thereby declare that this report is the result of my own work except for quotation
and summaries which have been duly acknowledge”

NUR AININA BINTI NAZMI NURUL ADZWIN BINTI NOORDIN

2014456536 2014420954

SITI SOLEHAH BINTI OMAR MUHAMMAD NOR ASYRAF BIN

2015834112 MUHAMAD
2015636532

DENNIS RODY ANAK HO KOK

SUNTING@SUNTING
2015694896

i
 SUPERVISOR’S CERTIFICATION

“Thereby declare that I have read this thesis and in my own opinion this project
report is sufficient in terms of scope and quality for the award of the Bachelor in
Chemical Engineering (Hons).”

Signature : ………………………………….
Name : Siti Fatimah Abdul Halim
Date : ………………………………….

ii
 TABLE OF CONTENTS

TITLE PAGE
DECLERATION i
SUPERVISOR’S CERTIFICATION ii
TABLE OF CONTENTS iii
LIST OF TABLES iv
LIST OF FIGURES v
LIST OF PLATES vi
LIST OF SYMBOLS vii
LIST OF ABBREVIATIONS viii
EXECUTIVE SUMMARY ix

CHAPTER 2 MARKET ANALYSIS 1

2.1 ECONOMIC DATA/SUPPLY AND DEMAND 1
2.1.1 Product Market Survey 1
2.1.2 Demand and Supply for Phthalic Anhydride 2
2.1.3 Demand and Supply for Maleic Anhydride (by-product) 2
2.2 BREAK EVEN ANALYSIS 4
2.2.1 Estimation of Fixed Capital Investment (FCI) 4
2.2.2 Estimation of Cost of Operating Labor 5
2.2.3 Estimation of Cost of Utilities 7
2.2.4 Estimation of Manufacturing Cost 8
2.2.5 Estimate Sales Profit Margin 9
2.2.6 Variable Cost 9
2.2.7 Break Even Point (BEP) 10
2.2.8 Cash Flow Analysis 11
2.2.9 Payback Period (PBP) 11
2.3 CONCLUSION OF ANALYSIS 12
LIST OF REFERENCES 13
APPENDICES 14

iii
 LIST OF TABLES

PAGE
Table 2.1: Summary of Total Fixed Capital Investment ...............................................4
Table 2.2: Number of operator based on equipment for main process ........................6
Table 2.3: Number of operator based on equipment for utilities ..................................6
Table 2.4: List of the price and sale for raw material and product ...............................8
Table 2.5: Summary of Total Manufacturing Cost by using CAPCOST .......................8
Table 2.6: Purchase Equipment................................................................................14
Table 2.7: List of Purchased Utilities Equipment .......................................................15
Table 2.8: List of Estimation of Operating Labor .......................................................16
Table 2.9: List of power used by main process equipment ........................................17
Table 2.10: List of power used by utilities equipment ................................................17
Table 2.11: Non-discounted Profitability Criteria .......................................................17

iv
 LIST OF FIGURES

PAGE
Figure 2.1: World Consumption of Phthalic Anhydride ................................................1
Figure 2.2: World regional demand on Phthalic Anhydride on 2016 ............................2
Figure 2.3: Global demand on Maleic Anhydride on 2004-2016..................................3
Figure 2.4 Cash Flow Diagram for Phthalic Anhydride Plant .....................................11

v
LIST OF PLATES

vi
LIST OF SYMBOLS

vii
 LIST OF ABBREVIATIONS

CEPCI Chemical Engineering Plant Cost Index

DMC Direct Manufacturing Cost

FCI Fixed Capital Investment Cost

FMC Fixed Manufacturing Cost

GME General Manufacturing Expenses

MA Maleic Anhydride

PA Phthalic Anhydride

PEC Purchased Equipment Cost

P Sale Price

PBP Payback Period

Q Breakeven Point

UPE Utilities Purchased Equipment

VC Variable Cost

viii
 EXECUTIVE SUMMARY

This project is to design a production of phthalic anhydride (PA) using o-xylene

and the treatment plant for pollutant that will be removing from the production process
which is carbon dioxide (CO2). The major concern of the project is to reduce and treat
the pollutant product from the production of phthalic anhydride process and at the same
to achieve the requirement by Malaysia Department of Environment (DOE) in
Environmental Quality Act 1974 (Clean Air). Then, the other objective of this project is
to produce the phthalic anhydride to fulfil the public need as raw material to produce
their product. Phthalic Anhydride is one of importance material that used as raw
material in manufacture of phthalate plasticizers, the main product being dioctyl
phthalate (DOP) which is used as a plasticizer in polyvinyl chloride (PVC) industry. The
other objective of this design project is to produce 100, 000 tonnes per annum of
phthalic anhydride to meet the increasing market demand, thus being in line with
another phthalic anhydride producer in Malaysia and Asia. The site location for this
production is the Gebeng Industrial Park, Pahang which is selected due to
consideration of several factors. The factors include the strategic location, land price,
facilities, transportation and environmental aspects. In designing the production plant,
environmental and safety is highly priority consideration. Malaysia rules and
regulations are taken into account in designing the process and the whole plant. In
this production of phthalic anhydride, the proposed plant uses continuous process that
the inputs and outputs flow continuously throughout the process.

ix
 CHAPTER 2

MARKET ANALYSIS

2.1 ECONOMIC DATA/SUPPLY AND DEMAND

2.1.1 Product Market Survey

The demand for phthalic anhydride has been driven by strong global demand
for phthalate plasticizers. The phthalate plasticizers market dominated the demand for
PA and accounted for 52% of the global volume consumed in 2016. Asia is the largest
consumer of phthalic anhydride for the production of plasticizers, accounting for about
61% of consumption [1]. China is the world’s largest consumer of phthalic anhydride
for phthalate plasticizers. The next-largest markets for phthalic anhydride outside of
Asia are in Europe and North America. The growth of the industries such as
construction, automotive and marine in Asia make India, Taiwan, South Korea and
Malaysia to have the highest growth rate of phthalic anhydride.

Figure 2.1: World Consumption of Phthalic Anhydride in 2016 [1]

1
2.1.2 Demand and Supply for Phthalic Anhydride

Demand for phthalic anhydride in alkyd resins is expected to grow at about 5.0
– 10% per year for the next eight years. Above average growth is expected in Asia,
particularly in India, China, and Southeast Asia [1]. World consumption of phthalic
anhydride is forecast to grow at an average annual rate of 4.0-4.5% per year for the
next five years to 2024 [1]. During this time, world growth in the consumption of phthalic
anhydride is expected to vary greatly by application and region.

Figure 2.2: World regional demand on Phthalic Anhydride on 2016 [1]

2.1.3 Demand and Supply for Maleic Anhydride

. The unsaturated polyester resin market, maleic anhydride's largest

consuming market, took a large hit from the weak housing, construction, automotive
and boating industries. At the end of 2016, several markets started to improve and
there was a significant increase on demand in 2017. Unsaturated polyester resins will
continue to have the largest market share and will drive refined maleic anhydride
consumption on a global scale. Overall economic health will affect the unsaturated
polyester resin market because it is tied to the construction, automotive and marine
industries [2].

2
 Figure 2.3: Global demand on Maleic Anhydride on 2004-2016 [2]

2.1.4 Demand and Supply for Carbon Dioxide

3
2.2 BREAK EVEN ANALYSIS

2.2.1 Estimation of Fixed Capital Investment (FCI)

The capital cost pertains to the costs associated with construction of a new
plant of chemical manufacturing plant. The cost estimated to design the 100, 000
tonnes per annum of phthalic anhydride production. All the data generated by
CAPCOST by using (CEPCI 2018 = 609.28) [3] [4]

Table 2.1: Summary of Total Fixed Capital Investment [4]

Type of Cost US$ per Year

Direct Project Expenses
- Purchase equipment cost (PEC) 7, 951, 400
(Refer Appendix Table 2.6)
- Materials requirement for installation 2, 862, 504
i. Piping (36% PEC) 238, 542
ii. Insulation (3% PEC) 954, 168
iii. Instrumentation and Painting (12%) 556, 598
iv. Electrical (7% PEC)
- Labor to install equipment 2, 385, 420
i. Piping (30% PEC) 397, 570
ii. Insulation (5% PEC) 238, 542
iii. Instrumentation and Painting (3% PEC) 397, 570
iv. Electrical (5% PEC)
1. TOTAL DIRECT COST 15, 982, 314
Indirect Project Expenses
- Freight, insurance and taxes
i. Import Cost (15% PEC) 1, 192, 710
ii. Incoming Taxes (5% PEC) 397, 570
iii. Transportation (5% PEC) 397, 570
- Contractor engineering expenses 4, 253, 539
2. TOTAL INDIRECT COST 6, 241, 389
3. BARE MODULE COST (DIRECT + INDIRECT) 22, 223, 703
Contingency and Fee
- Contingency (15% PEC) 1, 192, 710

4
 - Contractor’s Fee 313, 228
4. TOTAL CONTINGENCY AND FEE 1, 505, 938
Auxiliary Facilities
- Site Development
i. Purchase Land Cost (50,000 m2) 350, 000
ii. Repair and Modification (10% Land Cost) 35, 000
- Auxiliary Building
i. Construction Building
ii. Equipment (10% Building Cost) 248, 150
- Off-sites and utilities 24, 815
i. Utilities Purchase Equipment Cost (UPE)
(Refer Table 2.7 Appendix) 1, 199, 025
ii. Utilities Installation (3% UPE) 35, 970
5. TOTAL AUXILIARY FACILITIES 1, 892, 960
FIXED CAPITAL INVESTMENT COST (3+4+5) 25, 622, 601

Typical values for the working capital are between 15% - 20% of the fixed capital
investment. Assume working capital is 15% of fixed capital investment;

Working Capital = 15% x $ 25,622,601 = $ 3,843,390

Total Fixed Capital Investment (FCI) = $ 29,456,991

2.2.2 Estimation of Cost of Operating Labor

The calculation of workers is based on:

Assumption:
 95% of Malaysian workers and 5% of foreign workers
 A single operator works on the average 49 weeks a year
 3 weeks’ time off for sick, personal leave and vacation
 Operate 24 hour per day for chemical plant
 6 shifts/week for single operator and 294 shifts/year.

Added on the assumption:

Since the plant is operating all year,
(2 shift per day X 365 days) = 730 shifts are required per year.

5
The number of operators needed to fill 730 shifts is
(730 shifts/294 shift) = 2.5 operators ≈ 3 operators
The number of non-particulate steps in the phthalic anhydride plant:
Nnp = Σ equipment =

a) The number of operator for the main process

Table 2.2: Number of operator based on equipment for main process

Equipment Total Unit Operator/Shift

Compressor 1 2
Reactor 1 2
Exchanger 11 6
Tower 3 6
Condenser 3 6
Fired Heater 1 2
Tank 3 6
Reboiler 3 6
Total 36

b) The number of operator for utilities

Table 2.3: Number of operator based on equipment for utilities

Equipment Total Unit Operator/Shift

Air Plant 1 2
Generator 1 2
Cooling Tower 3 6
Waste Treatment 1 3
Refrigerator 3 6
Tank 1 2
Total 21

Nnp = Σ equipment = 14 Equipment include (compressor, tower, reactor, heater,

exchanger)

The theoretical number of operators per shift (NOL) is as follows

NOL = [6.29 + 31.7P2 + (0.23) Nnp] 0.5 = 4.1073

Operating Labor = (3) * (4.1073) = 12.32 ≈ 13 operators

6
*13 Operator for integer yield need to double up as a backup if the person in charge
have an emergency and need to replace by others operator in order to make sure the
operation run smoothly.

Actual number of operators and supervisor per shift needed:

- Operator for main process unit = 36 operators per shift
- Operator for utilities unit = 21 operators per shift
- Supervisor = 2

Total number of operators per shift = 57 operators

Total number of operator and supervisor for overall shift (2 shift) = 118
Total all the worker = 154 (Refer Appendix Table 2.8)
Total Operating Labor Cost= $ 994,200/year (1$ = RM4.25)

2.2.3 Estimation of Cost of Utilities

The amount of power used by utilities equipment used were presented in Appendix
The amount of electricity for process equipment for major uses
= 19.75 hp
i. Amount of electricity needed by utilities unit.
= 207.5 hp
Total Electricity used: 19.75 + 207.5 = 227.25

The amount of electricity needed for instrumentation purposes and control is estimated
at 10% of the need for process tools and utilities.
Then the need for electricity for instrumentation and control = 22.73
*Refer to the sample calculation.
Generate from CAPCOST. From the given information:

Utility Cost (CUT) = $ 5,893,700 include electricity

Backup electricity = $ 10,368
Total Utility Cost (CUT) =$ 5,904,068

7
2.2.4 Estimation of Manufacturing Cost

In this section, manufacturing cost will explain about the cost associated with
day-to-day operation of a chemical plant. There are many elements that influence the
manufacturing cost of chemical production plant especially in petrochemical industry.
There are three cost items need to be evaluate in order to general manufacturing cost
and total manufacturing cost per year. The three important items or categories for
manufacturing cost are direct manufacturing costs (DMC), fixed manufacturing costs
(FMC) and general manufacturing expenses (GME).

Price of Raw Material and Product

Table 2.4: List of the price and sale for raw material and product

Price Flowrate
Material Name Classification ($/kg) (kg/h) Annual Cost
O-Xylene Raw Material $ 0.35 10828.93 $ 31,541,424
Vanadium
Oxide Raw Material $ 3.30 198.63 $ 5,742,096
Phthalic
Anhydride Product $ (1.20) 11537.49 $ (115,217,990)

Carbon Dioxide Product $ (0.12) 1584.36 $ (1,582,205)

Maleic
Anhydride Product $ (0.90) 594.55 $ (4,453,061)

Table 2.5: Summary of Total Manufacturing Cost by using CAPCOST [4]

Cost Items Multiplying Cost in US$

Factor
Direct Manufacturing Cost (DMC)
- Raw Materials
i. O-xylene ($0.35/kg) (10,828.93 CRM 31, 541, 424
kg/h)
ii. Vanadium Oxide 5,742,096
- Waste treatment CWT 6, 726, 726
- Utilities CUT 5, 904, 068
- Operating Labor COL 994, 200
- Direct Supervisory and clerical labor 0.18COL 178,956

8
 - Maintenance and repair 0.06FCI 1, 537,356
- Operating Supplies 0.009FCI 230, 603
- Laboratory charges 0.15COL 149,130
- Patents and royalties 0.03COM 2, 696, 560
TOTAL DMC $ 55, 701, 119
Fixed Manufacturing Cost (FMC)
- Depreciation 0.1FCI 2, 562, 260
- Local taxes and insurance 0.032FCI 819, 923
- Plant overhead cost 0.708COL + 1, 626, 307
0.036FCI
TOTAL FMC 5, 008, 490
General Manufacturing Expenses (GME)
- Administration costs 0.177COL + 406, 576
0.009FCI
- Distribution and selling costs 0.11COM 6, 678, 056
- Research and development 0.05COM 3, 035, 480
TOTAL GME 4, 120, 112
TOTAL MANUFACTURING COST $ 64, 829, 721

2.2.5 Estimate Sales Profit Margin

Total Raw Material Cost = $ 37, 283, 520 / year

Total Product Price = $ 119, 671, 051 / year
Estimate Profit Margin = Product price – Raw Material Price
= $ 119, 671, 051 - $ 37, 283, 520
= $ 82, 387,531 / year

2.2.6 Variable Cost

Variable Cost = Raw Material + Labor Cost + Utilities + Waste Treatment

= $ 37, 283, 520 + $ 994,200 + $ 5,904,068 + $ 6, 726, 726
= $ 50,908,514

$ 50,908,514/year
Total Variable Cost =
100 000 tonne/year

9
 = $ 509.09 tonne

2.2.7 Break Even Point (BEP)

Breakeven analysis is one of the most common tools used in evaluating the
economic feasibility of a new enterprise or product. The breakeven point is where the
revenue is exactly equal to costs. Therefore,
TR = TC
PQ = FC +VC

Since VC = VQ then,

PQ - VQ = FC
Q(P-V) = FC
FC
Q=
P−VC
Where;

FCI = Fixed Capital Investment Cost

P = Sales price per unit
VC = Variable cost
Q = Breakeven point
$ 119,671,051 /year
Sales price per unit =
100,000 tonne/year
= $ 1,196.71/tonnes

Thus, from the value achieved, the breakeven analysis can thus be calculated by using
equation as follows;

FC
Q=
P−VC

25,622,601
$
year
= 1,196.71 509.09 = 37, 475.87 tonne/year
$ −$
tonne tonne

From the analysis, the breakeven point occurs at the production of 32, 475.87 tonne
per annum. The total production of phthalic anhydride plant is 100,000 tonne per
annum. Hence, it can be concluded that this project is feasible.

10
2.2.8 Cash Flow Analysis

The cash flow was used to determine the timing of the cash flows in the plant.
It also the movement of money whether gives profit or loss of some production plant.
It is usually measures by using limited period of time or project life year. In the
construction of plant, 10,12 and 15 are commonly used. This project life year was
directly related to profitability. This is depending on the value of income earned during
the time the plant generated whether smaller or greater at the beginning of the project.
(Refer to Table 2.11 Appendix) for non-discounted cash flow table.

Figure 2.4 Cash Flow Diagram for Phthalic Anhydride Plant

2.2.9 Payback Period (PBP)

The payback period determined is within 2.3 years of operation. However, period may
be change due to the economic condition. This is because the price of raw materials
is cheaper, and the product price is higher and, taxes or equipment can be changed
over years.

11
 Discounted Profitibility Criterion Non-Discounted Profitibility Criteria
Net Present Value (millions) 38.94 Cumulative Cash Position (millions) 103.34

Discounted Cash Flow Rate of Return 31.20% Rate of Return on Investment 35.08%

Discounted Payback Period (years) 2.9 Payback Period (years) 2.3

Payback
Cumulative Cash Flow 3rd Year−(Cost of Land+Working Capital)
Period (PBP) = 2 +
Cumulative Cash Flow for 3rd year−Cumulative Cash for 4th Year

−$ 7,538,000−$ 4,193,390
=2+
−$ 7,538,000+$ 5,460,000
= 2 + 0.3
= 2.3 years

CONCLUSION

Based on the review of operating conditions, the selection of raw materials,

products and process technology, then the Phthalic Anhydride plant from o-xylene and
air with capacity of 100,000 tons / year belongs reasonable plant.

Break Even Point (BEP) is 32, 475.87 tonne per annum, already in the
reasonable range is in the range of 40-60%. Moreover, Payback Period within 2.3 year
because of the cheaper the raw material and high sale price of product.

From the results of economic analysis above can be concluded that Phthalic Plant
Anhydride from o-xylene and air with a capacity of 100,000 tons / year feasible and
need to be studied further for other improvement.

12
 LIST OF REFERENCES

[1] ITA Conference, No Title, in: Phthalic Anhydride, ITA Conference, Prague,
2017.
[2] Merchant Research and Consulting, Phthalic Anhydride Market, (2016).
[3] Matche.com, Chemical Engineering Equipment Cost, (n.d.). matche.com
(accessed January 1, 2017).
[4] J. Richard Turton, Bailie, Wallace, Analysis, Synthesis and Design of Chemical
Process, Fourth Edi, Pearson, United States, 2014.

13
 APPENDICES

Table 2.6: Purchase Equipment

User Added Equipment

Purchased Equipment
Compressors Compressor Type Bare Module Cost
Cost
C-701 Centrifugal $ 505,000 $ 1,380,000
Purchased Equipment
Exchangers Exchanger Type Bare Module Cost
Cost
E-701 Floating Head $ 28,200 $ 177,000
E-702 Floating Head $ 30,900 $ 197,000
E-703 Floating Head $ 35,000 $ 216,000
E-704 Floating Head $ 30,500 $ 188,000
E-705 Floating Head $ 28,100 $ 173,000
E-706 Fixed, Sheet, or U-Tube $ 30,000 $ 185,000
E-707 Floating Head $ 70,500 $ 232,000
E-708 Floating Head $ 67,000 $ 413,000
E-709 Floating Head $ 52,300 $ 322,000
E-710 Floating Head $ 51,400 $ 317,000
E-711 Floating Head $ 60,900 $ 375,000
E-712 Floating Head $ 43,200 $ 266,000
Purchased Equipment
Fired Heaters Type Bare Module Cost
Cost
H-701 Process Heater $ 887,000 $ 2,490,000
Pumps (with Purchased Equipment
Pump Type Bare Module Cost
drives) Cost
P-701 Centrifugal $ 3,830 $ 19,000
P-702 Centrifugal $ 4,390 $ 21,800
Purchased Equipment
Towers Tower Description Bare Module Cost
Cost
T-701 24 Carbon Steel Sieve Trays $ 55,600 $ 116,000
T-702 19 Stainless Steel Sieve Trays $ 74,500 $ 316,000
T-703 23 Carbon Steel Sieve Trays $ 71,500 $ 281,000
Purchased Equipment
Vessels Orientation Bare Module Cost
Cost
V-701 Horizontal $ 6,550 $ 40,700
V-702 Horizontal $ 6,430 $ 40,000
V-703 Vertical $ 8,420 $ 66,600
V-704 Vertical $ 8,480 $ 67,100
V-705 Horizontal $ 8,390 $ 52,200
Total Bare Module Cost $ 7,951,400

14
 Table 2.7: List of Purchased Utilities Equipment

Unit Total Price

No. Equipment Amount Unit Size
Price US $
1. Container Tub and settling 1 532 m3 2,603 2,603
2. Tank Premix 1 976.21 gal 27,261 27,261
3. Alum Solution Tank 1 256.86 gal 13,971 13,971
4. Tank Ca(OH)2 Solution 1 256.86 gal 13,971 13,971
5 Clarifier 1 162.38 gpm 76,800 76,800
6. Tank 1 44.24 m3 216 216
7. Sand Filter 2 88.47 m3 17,900 17,900
8. Filtered Water Tank 1 11686.23 gal 37,484 37,484
9. Cooling Tower 2 1796.53 gpm 149,934 299,869
10. Hot Basin 1 940.11 m3 4,600 4,600
11. Cold Basin 1 940.11 m3 4,600 4,600
12. Chlorination Tank 1 2008.04 gal 35,780 35,780
13. Distribution Tub 1 48192.91 gal 102,228 102,228
14. Chlorine Tank 1 1204.82 gal 14,482 14,482
15. Molten Salt Tank 1 85409.61 gal 136,304 136,304
16. Discharge Pumps 1 857.55 gpm 16,200 16,200
17. Oilterm Tank 1 43586.61 gal 105,636 105,636
18. Downterm Tank 1 2265.62 gal 20,446 20,446
19. Air Compressor 1 475.51 gpm 136,302 136,302
20. Air Tank 1 1629.94 gal 32,372 32,372
21. Diesel Generator 1 1000 kW 100,000 100,000
Total $ 1,199,025

15
Table 2.8: List of Estimation of Operating Labor

No of
Position US$/Month Total US$/Year
Worker
CEO 1 6,000 72,000
COO 1 5,000 60,000
HR
Manager 1 2,000 24,000
Assistance 2 1,600 19,200
Sales, Marketing & Finance
Manager 1 1,100 13,200
Assistance 2 1,600 19,200
Business Development &
Admin 1 1,100 13,200
Manager 1 800 9,600
Assistance
QC & QA
Supervisor 1 700 8,400
Technician 2 1,200 14,400
Operation
Manager 1 3,500 42,000
Engineer 2 4,000 48,000
Operator 118 35,400 424,800
HSE
Manager 1 3,000 36,000
Assistance 3 3,000 36,000
Maintenance
Engineer 1 2,000 24,000
Technician 3 1,500 18,000
Logistic
Manager 1 1,400 16,800
Assistance 3 2,400 28,800
Lab
Engineer 1 2,000 24,000
Chemist 2 1,600 19,200
Assistance 2 1,200 14,400
Security Guard 3 750 9,000
994,200
TOTAL

16
 Table 2.9: List of power used by main process equipment

Power (Hp)
No. Equipment Amount
Power/Unit Total Power
1. Pump (P-701) 1 5.00 5.00
2. Pump (P-702) 1 1.50 1.50
3. Reflux Pump (T-701) 1 0.25 0.25
4. Reflux Pump (T-702) 1 0.25 0.25
5. Reflux Pump (T-703) 1 0.75 0.75
6. Compressor (C-701) 1 7.50 7.50
7. Discharge Pump 1 1.50 1.50
8. Belt Conveyor 1 1.75 1.75
9. Bucket Elevator 1 0.25 0.25
10. Recycle Pump 1 1.00 1.00
Total 19.75

Table 2.10: List of power used by utilities equipment

No Equipment Power, hp

1. Molten Salt Pump 60.00

2. Oil term Tank 46.25
3. Down term Tank 5.00
4. Other Utilities Pumps 88.75
5. Air Compressor 6.5
Total 207.5

Table 2.11: Non-discounted Profitability Criteria

Cumulative
Cash Flow Cumulative Cash Flow
FCIL- (R-COMd- (Non- Cash Flow Cash Flow (Non-
Year Investment dk Sdk R COMd dk)*(1-t)+dk discounted) (discounted) (discounted) discounted)
0 0.00 29.46 0.00 0.00 0.00 0.00
0 0.35 29.46 (0.35) (0.35) (0.35) (0.35)
1 17.67 29.46 (17.67) (16.07) (16.42) (18.02)
2 11.78 29.46 (11.78) (9.74) (26.16) (29.81)
2 3.84 29.46 (3.84) (3.18) (29.33) (33.65)
3 2.95 26.51 82.39 69.06 13.00 13.00 9.77 (19.57) (20.65)
4 5.30 21.21 82.39 69.06 13.07 13.07 8.93 (10.64) (7.58)
5 4.24 16.97 82.39 69.06 13.04 13.04 8.10 (2.54) 5.46
6 3.39 13.58 82.39 69.06 13.01 13.01 7.34 4.80 18.47
7 2.71 10.87 82.39 69.06 12.99 12.99 6.67 11.47 31.46
8 2.18 8.69 82.39 69.06 12.97 12.97 6.05 17.52 44.43
9 1.94 6.75 82.39 69.06 12.97 12.97 5.50 23.02 57.40
10 1.94 4.80 82.39 69.06 12.97 12.97 5.00 28.02 70.36
11 1.91 2.89 82.39 69.06 12.96 12.96 4.54 32.56 83.33
12 1.91 0.97 82.39 69.06 15.82 15.82 5.04 37.60 99.14
12 4.19 1.34 38.94 103.34

17
1