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A plant to make 30 000 t y-1 of glycerine and comprising 11 process steps was...

A plant to make 30 000 t y-1 of glycerine and comprising 11 process steps was built in the UK five years ago, with a total investment cost of GBP 48 million. A new plant for the production of 50 000 t y-1 of glycerine is now to be built near Ankara, Turkey. Because of more stringent international legislation, new glycerine plants require additional pollution control equivalent to 3 further process steps. Estimate the total investment cost in TRY (Turkish Lira) of such a plant using the data below.

Scale factor = 0.6

DATA

8 y ago

5 y ago

Now

Cost index: Turkey

150

223

342

Cost index: UK

201

262

285

Location factor, Turkey/UK

0.82

not available

not available

Exchange rate, TRY/GBP

2.43

2.77

2.82

Solutions

Expert Solution

Amanda K answered 5 months ago
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