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Question 1 26 marks
a) A sugar company wishes to determine what is the monthly break-even tonnage of sugar given
the following data. The monthly overhead (fixed) costs of the company is R 12.4 million. The
selling price of sugar is R 2853 per ton. Other costs (in R/ton sugar) are: cane R 1187, extraction
R 582, refining R 238, packaging R 156. [8]
b) The following table gives net income figures (after tax) of a given company over 6 years.
Calculate the net present value (NPV) using a discount rate of 9%. Work out the answer in a neat
table.
Year Net income
Rmillion
1 15.2
2 13.7
3 22.5
4 18.4
5 20.6
6 23.1
[10]
c) A distillation column will need to be replaced in 5 years and 4 months time. It is estimated that
it will cost R R 2.93 million at the time it has to be replaced. How much money needs to be set
aside by the company per month, earning 10.5% interest p.a., compounded monthly, in order
for the company to be able to replace the distillation column when required? [8]
Question 2 44 marks
Question 3 30 marks
a) The following diagram represents the tasks of a particular project. Determine the critical path,
the length of the project and the slack time on each path. Present your answer in a neat table.
[12]
5 days
3 days 2 3
7days
4 days
1 2 days 6
3 days 11 days
6 days
8
4
8 days 5 7 9 days
6 days
b) The following diagram for another project shows lengths of activities in days. If the
standard cost of the project is R 2000/day, determine the length of each path and the
standard length of the project. Use the data in the table below to determine the
optimum cost of the project if certain activities are crashed. Show your working clearly
using a table which indicates how you obtained your answer. What will now be the
optimal length of the project if crashing is done methodically. [18]
7 days
2 5 12 days
4 days
3 days
1
7
5 days 4
8 days
6 days
3 6
9 days
Activity Normal time (days) Crash time Crash Cost (R/day)
1-2 4 4 580
2-5 7 5 820
2-4 3 2 670
4-6 8 6 390
1-3 5 4 410
3-6 9 7 510
5-7 12 9 480
6-7 6 4 600
Formulae
FV = PV ( 1+i)n
1 i n 1
FV A
i
n
Ct
NPV
t 0 1 k t
ENCH4PE MAIN EXAM 2011
SOLUTIONS
Question 1 26 marks
a) Variable costs = 1187 +582 + 238 + 156 = R 2163 / ton sugar (3)
b) Formula: (2)
n
Ct
NPV
t 0 1 k
t
k= 0.09
c) Formula:
i
A FV
1 i n
1
Question 2 44 marks
b) The two processes are aerobic and anaerobic treatment. Micro-organisms use organic
and inorganic constituents in wastewater for energy and generating more micro-
organisms
Aerobic process
Micro-organisms use free dissolved oxygen in water for the breakdown of organic
material.
C, H, O, N, P, S, + O2 aerobic_> CO2 + H2O + NO3-+ SO42-+ PO43-+ new cells + energy
micro-organisms
The O2 used in the breakdown must continuously be replaced for further growth of
micro-organisms. This requires artificial aeration using aerators.
For the process of breakdown of organic constituents to be efficient, the micro-organisms
must be present in sufficient numbers or concentration (expressed as mixed liquor
suspended solids MLSS).
The products of aerobic processes are usually not objectionable.
1 mark for each relevant statement (6)
Anaerobic process
This occurs when free dissolved oxygen is not present in water.
The micro-organisms take oxygen from inorganic salts (NO3-, SO42-, PO43-) which
contain oxygen in bound form and produce the reduced forms of the constituent elements
(N2 , PH3 , H2S).
C, H, O, N, P, S, + NO3-+ SO42-+ PO43-
__anearobic___ > CO2 + CH4 + N2 + PH3 + H2S + new cells + energy
micro-organisms
The products of anaerobic processes are usually more objectionable than those of aerobic
processes.
CH4 and PH3 are combustible (fuels).
1 mark for each relevant statement (6) [12]
d 2 x 25 2
(c) (i) Volume of plant = xh x 2.3 1129 m 3
4 4
3
V 1129 m
t 0.806 d or 19.4 h (3)
Q 1400 m 3 / d
(ii) COD loading = 1400 m3/d x (0.850 0.120) kg COD/m3 = 1022 kg COD/d (2)
Mass COD / d 1022
(iii) Vol . org. loading 0.905 kg COD / m 3 .d (2)
Vol of plant 1129
(iv) Mass MLSS in aeration tank = 1129 m3 x 2.25 kg MLSS/m3 = 2540 kg MLSS
[10]
Vol. of CO2 released = (273 + 26)/ 273 x 22.4 x 372.7 = 9144 m3 CO2 (4)
[10]
Question 3 30 marks