water separator efficiency will be lower if oilwater emulsion is present in the separator feed (iniet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system (chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000 barrels of fluid per day. However, the actual average daily demand is 90%. The following cost expenditure data are below. Determine the present worth, future worth and annual worth capital equivalent. Use 8% interest rate per year. Estimate the unitary cost per barrel (S/bbl) for the use of this chemical, assuming a project life of 10 years. Investment: Chemical iniertion
water separator efficiency will be lower if oilwater emulsion is present in the separator feed (iniet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system (chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000 barrels of fluid per day. However, the actual average daily demand is 90%. The following cost expenditure data are below. Determine the present worth, future worth and annual worth capital equivalent. Use 8% interest rate per year. Estimate the unitary cost per barrel (S/bbl) for the use of this chemical, assuming a project life of 10 years. Investment: Chemical iniertion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![te tacilities.
An oil/water separator efficiency will be lower if oil/water emulsion is present in the separator feed
(inlet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system
(chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000
barrels of fluid per day. However, the actual average daily demand is 90%. The following cost
expenditure data are below. Determine the present worth, future worth and annual worth capital
equivalent. Use 8% interest rate per vear. Estimate the unitary cost per barrel (S/bbl) for the use of
this chemical, assuming a project life of 10 years.
Investment:
Chemical injection system: $ 50,000 (the investment includes 3 positive displacement 0.25 hp
pumps, each with electric motor, and storage tanks)
Annual expenses
Electricity: $ 600
Maintenance and repair: $ 10,000
Operation: $ 120,000
Chemical consumption and cost: 10 gallons of demulsifier per day at $60 per gallon.
Future
Pump overhaul cost $400 per pump at the fifth year.
Salvage value at end of the useful life: negligible.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0037f6d4-02ee-4e85-ba77-fd8ddb1cd9c1%2F82a9a571-778b-439b-8fe6-ab149fb4a180%2Flt24yj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:te tacilities.
An oil/water separator efficiency will be lower if oil/water emulsion is present in the separator feed
(inlet fluid). One alternative to break emulsions is the use of chemical demulsifiers. A demulsifier system
(chemical pump injection), installed upstream of the separator, has a capacity to treat up to 40,000
barrels of fluid per day. However, the actual average daily demand is 90%. The following cost
expenditure data are below. Determine the present worth, future worth and annual worth capital
equivalent. Use 8% interest rate per vear. Estimate the unitary cost per barrel (S/bbl) for the use of
this chemical, assuming a project life of 10 years.
Investment:
Chemical injection system: $ 50,000 (the investment includes 3 positive displacement 0.25 hp
pumps, each with electric motor, and storage tanks)
Annual expenses
Electricity: $ 600
Maintenance and repair: $ 10,000
Operation: $ 120,000
Chemical consumption and cost: 10 gallons of demulsifier per day at $60 per gallon.
Future
Pump overhaul cost $400 per pump at the fifth year.
Salvage value at end of the useful life: negligible.
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