manager of a company that was expanding its operations in 2004 had to install another production line to make liquid product. Some of the major equipments included; 4 floating head, shell & tube heat exchangers of fully stainless steel materials to operate at 25 bars. The approximate heat transfer area for each exchanger was 20m². Some of the major capital equipments had the quotation of £300.000 including all installations. The other major equipments to be included were; a propeller, a boiler 8 bar, carbon steel jacketed reactor 20m² and 2 conical storage tanks of 50m³ capacity each made of stainless steel and 2 horizontal tanks, each 100m³ made of carbon steel. The design and engineering was 10% physical project cost. The plant was expected to produce 8000 tons annually of the products each selling at £200 per tom. If the project was estimated to last years, determine whether the project was worthy. The utilities needed for the process were 20 tons steam per year, electricity 2000000 MJ/year, refrigeration 1000000 MJ/year. The cost factor for equipment erection, piping, instrumentation, and electrical were 0.4, 0.7, 0.2 and 0.1 respectively. The cost factor for design and engineering was 0.2 and initial, catalysts/solvents costs is approximated as 7% fixed costs. The raw material consumption was twice the products formation. The cost of each raw material was £10 per ton. The fixed costs were estimated as £250,000 per year. The boiler working was approximated to be 3000hrs per year. Assume a constant inflation of 2% per year. The cost of utilities are: 1 p/MJ electricity, 7£/ton steam and 1p/MJ refrigeration. Don't factor in installation costs here