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

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Amanda K answered 3 months ago

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