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An oil trading company is interested in building a new oil refinery, with an annual processing capacity, SA. of 800 thousand bbl/d, to meet growing demand for fuels. They currently have a refinery which processes 400 thousand bbl/d of crude oil with an estimated cost. C. of $1.50 billion. However, this is not the full processing capacity of the refinery. You have been requested to by the CEO to present a brief on the proposed refinery project is given below a) Calculate the estimated capital cost of the new refinery, CA b) Calculate the parentage rise in the capital cost e) Comment on the results and highlight your assumptions Hint: CA = CA AX
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