Management Project Economic Analysis Essay Example | Topics and Well Written Essays - 250 words

Management Project Economic Analysis - Essay ExampleThe ferment has a by crop of poly-di-isopropyl-benzene, which is easily disconnected by fractionation section. The byproduct is produced by an additional reactor. In order to attain a light cost and higher purity, recycle streams are used in the process. Further, temperature regulation is essential since the reaction occurs at high temperatures.The process has a byproduct of poly-di-isopropyl-benzene, which is easily sepa ranged by fractionation section. The byproduct is produced by an additional reactor. In order to attain a lower cost and higher purity, recycle streams are used in the process. Further, temperature regulation is essential since the reaction occurs at high temperatures. With reference to economic analysis, FCI has a total of 16.53 M$ that comprises of 14.53 M$ ISBL and 2.0 M$ OSBL. As such, bullion flow statement indicates that the payments will be rendered in full amounts within three years. Both the furnace an d shake up exchanger use ISBL while the feed tank uses OSBL. The impact of net present value (NPVO) on CumCF in a period of 3.2 years is 150.72 M$ and NPV 12 with an interest of 15% is 552.46 M$. The IRR is 24.28 % with a payback of 3.2 years, which implies that this project is viable and profitable. Considering economic sensitivities, FCI changes because of utilities and product price. From the tuition gathered, this project is profitable since the involved product is worth and FCI is low in terms of the cost of the product and raw material. The quantitative comparison indicates that changes in product price and FCI are critical and sensitive. In conclusion, this project is sensitive to product price changes, as well as FCI changes. However, the project is viable and profitable. Nevertheless, there is a need to gather economic information on Cumene price changes and establish the demand for the product. For now, there is a need to increase the production rate of the product.