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2.1. A soap making plant is producing 10,000 metric tons per year (10 KMTA) of a product. The overall yield is 80%, on a mass basis (kg of product per kg raw material). The raw material costs R500/metric ton, and the product sells for R900/metric ton. A process modification has been devised that will increase the yield to 85%. The additional investment required is $1,250,000, and the additional operating costs are negligible. Is the modification worth making?

2.1. A soap making plant is producing 10,000 metric tons per year (10 KMTA) of a product. The overall yield is 80%, on a mass basis (kg of product per kg raw material). The raw material costs R500/metric ton, and the product sells for R900/metric ton. A process modification has been devised that will increase the yield to 85%. The additional investment required is $1,250,000, and the additional operating costs are negligible. Is the modification worth making?

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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2.1. A soap making plant is producing 10,000 metric tons per year (10 KMTA) of a product. The overall yield is 80%, on a mass basis (kg of product per kg raw material). The raw material costs R500/metric ton, and the product sells for R900/metric ton. A process modification has been devised that will increase the yield to 85%. The additional investment required is $1,250,000, and the additional operating costs are negligible. Is the modification worth making?
Transcribed Image Text:2.1. A soap making plant is producing 10,000 metric tons per year (10 KMTA) of a product. The overall yield is 80%, on a mass basis (kg of product per kg raw material). The raw material costs R500/metric ton, and the product sells for R900/metric ton. A process modification has been devised that will increase the yield to 85%. The additional investment required is $1,250,000, and the additional operating costs are negligible. Is the modification worth making?
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