Scribd Logo
Upload

Welcome to Scribd!

  • 15 views

    خالد محمد محمد سالم

    Uploaded by

    khaledmhmad157
    The document summarizes a project proposal for a wood plastic composite production facility. It includes a list of required equipment and their costs totaling $3.05 million. Raw material and labor costs are estimated to be $7.92 million annually. The projected annual profit is $9.19 million with a 5.02% return on investment and a payback period of 0.1989 years. An analysis of production rates determines the maximum profit of $108.79 million would be achieved at 1781 tons per hour.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    خالد محمد محمد سالم

    Uploaded by

    khaledmhmad157
    15 views11 pages
    The document summarizes a project proposal for a wood plastic composite production facility. It includes a list of required equipment and their costs totaling $3.05 million. Raw material and labor costs are estimated to be $7.92 million annually. The projected annual profit is $9.19 million with a 5.02% return on investment and a payback period of 0.1989 years. An analysis of production rates determines the maximum profit of $108.79 million would be achieved at 1781 tons per hour.

    Original Description:

    خالد

    Original Title

    خالد محمد محمد سالم (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes a project proposal for a wood plastic composite production facility. It includes a list of required equipment and their costs totaling $3.05 million. Raw material and labor costs are estimated to be $7.92 million annually. The projected annual profit is $9.19 million with a 5.02% return on investment and a payback period of 0.1989 years. An analysis of production rates determines the maximum profit of $108.79 million would be achieved at 1781 tons per hour.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    15 views11 pages

    خالد محمد محمد سالم

    Uploaded by

    khaledmhmad157
    The document summarizes a project proposal for a wood plastic composite production facility. It includes a list of required equipment and their costs totaling $3.05 million. Raw material and labor costs are estimated to be $7.92 million annually. The projected annual profit is $9.19 million with a 5.02% return on investment and a payback period of 0.1989 years. An analysis of production rates determines the maximum profit of $108.79 million would be achieved at 1781 tons per hour.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 11

    Suez University

    Faculty of Petroleum and mining engineering


    Petroleum Refining and Petrochemical
    Engineering Department

    Project:
    Wood Plastic Composite

    1
    Equipment

    Wood Chipper Machine

    2
    Plastic Granulator Machine

    Plastic Mixer Machine


    3
    Extruder Machine

    Cooling4 System
    Sawing Machine

    5
    Packaging Machine

    Data For Project


    Equipment Cost
    Extruder Machine 1000000 EGP
    Woodchipper Machine 200000 EGP
    Plastic Granulator Machine 500000 EGP
    Mixer Machine 50000 EGP
    Cooling System 100000 EGP
    Sawing Machine 50000 EGP
    6
    Packaging Machine 50000 EGP
    Another Tools 100000 EGP

    Required Per Year Cost


    Raw Material 2000000 EGP
    Labor Salaries (100 X 4000) 4800000 EGP
    Electricity 500000 EGP
    Marketing 100000 EGP
    Maintenance 200000 EGP
    Insurance 500000 EGP

    Data
    Land + Construction = 1000000 EGP
    365 Working Days per year
    24 hours divided into 2 shifts.
    Production Rate = 1000 TON / Yr.
    Selling Price = 100000 EGP / TON
    Original Depreciable value = 2550000 EGP
    7
    N=25 Years
    Salvage value = 200000 EGP

    Calculations
     Fixed Capital Investment (FCI) = Equipment + Tools + Land
    FCI = 1950000 + 100000 + 1000000
    FCI = 3050000 EGP
     Working Capital Investment (WCI) = Raw Material + Salaries +
    Electricity + Marketing +Maintenance
    WCI = 2000000 + 4800000 + 500000 + 100000 + 20000 +
    500000
    WCI = 7920000 EGP
     Total Capital Investment = FCI + WCI
    TCI = 3050000 + 7920000 = 10970000 EGP
     Depreciation (Straight line method)

    d = V-Vs
    n = 2550000-200000 = 94000 EGP/yr
    2
    8
     Fixed Cost = Depreciation + Insurance
    Fixed Cost = 94000 + 500000 = 594000 EGP /yr.

     Direct Cost = Raw Material + Salaries + Electricity +


    +Maintenance
    Direct Cost = 2000000 + 4800000 + 500000 + 200000
    D.C= 7500000 EGP/ yr.
     Total Production Cost = Fixed Cost + Direct Cost
    Total Production = 594000 + 7500000= 8094000 EGP
     Total Sales = Selling Price X Production Rate
    Total Sales = 1000 X 100000 = 100000000 EGP
     Profit = Total Sales – Total Production Cost
    Profit = 100000000 – 8094000 = 91906000 EGP
    9
     Net Profit = Profit – Taxes
    Net Profit = (1- .4) 91906000 = 55143600 EGP
     Production At Break Even Point
    T.S ( ) D.C
    Total Production * P BEP = Total Production * P (BEP) + F.C

    100000000 * P (BEP) = 7500000 * P (BEP) + 594000


    1000000 1000000

    P (BEP) = 6421.62 KG

     Return of Investment ROI = NetT.C.I


    Profit = 55143600 = 5.02
    10970000
    y -1

     Pay Back Period time = ROI1 = 0.1989

    10
    Production Rate Fixed Cost Operating Cost Total Cost Total Sales Profit
    1000 549000 7500000 8049000 700800000 692751000
    1200 549000 9000000 9549000 840960000 831411000
    1300 549000 12600000 13149000 911040000 897891000
    1400 549000 20160000 20709000 981120000 960411000
    1500 549000 36288000 36837000 1051200000 1014363000
    1600 549000 72576000 73125000 1121280000 1048155000
    1700 549000 159667200 160216200 1191360000 1031143800

    Profit = -561.5P2 + 2E+06P- 8E+08

    d Profit' = -1123P + 2X106 = 0


    dx
    P = 1781 Ton/hr
    Maximum Profit = 1087908600 EGP

    1.2E+09 PROFIT
    1E+09
    800000000
    600000000 y = - 419.9092x2 + 2E+06x - 6E+08
    400000000
    200000000
    0
    1 30 330 530 730 930 1 1 30 1 330 1 530 1730 1 930

    11

    You might also like