Central Quality Office Rev:02 26th March 2013 1
F/QAP/021/001

General Instructions:
This coursework aims to develop an understanding of evaluating the economic viability of projects
in process industries. The students are presented with a case study related to an industrial
investment scenario. The case study requires the students to make wise judgements in uncertain
situations, and to propose and select from multiple possible options with proper justifications.
Each student is expected to prepare a separate project feasibility report based upon their
inferences and to report the same in a standard format. The report is expected to be free from
grammatical errors and should be organized well.
Assessment Methodology:
The assessment for this coursework is based on the feasibility and viability analysis of the given
project and the structured reporting of the same. The feasibility analysis carries 90% of the
assessment while the remaining 10% comes from the structuring of the report. The detailed
breakdown of marks for each assessment is shown under marking scheme.
Central Quality Office Rev:02 26th March 2013 2
F/QAP/021/001
Marking scheme

Please note all assignments shall subject to plagiarism software checks, “TURNITIN”.
Plagiarism
It is important to understand what plagiarism is and how it can be avoided.
“Unacknowledged copying from published sources (including the internet) or incomplete
referencing”.
The following also constitute plagiarism:
• Copying sections of work from a friend/colleague.
• Having a friend/family member dictate something to you.
• Copying and pasting from the internet without citing the source.
• Copying directly from a study text quotation without citing the source.
Quotations
When using quotations from books, websites or journal articles you should cite the author
and the year of publication then use the quote in quotation marks.
Paraphrasing
Paraphrasing is where you encapsulate another person’s original idea, argument or conclusion in
your own words. It is still necessary to attribute those ideas to the author, and you can do this by
using the formatting outlined above for direct quotations, taking care to include the author’s
surname and the year of publication.
Collaboration
We acknowledge that you may undertake joint study with colleagues or as part of a formal training
programme. However, working with another person to write assignments is not acceptable. Your
answers must be your own and in your own words.
Central Quality Office Rev:02 26th March 2013 3
F/QAP/021/001
Referencing
Harvard Referencing (CCE Style) First Edition 2013 should be followed for both in-text and listing
references. This downloadable document can be found in our CCE portal at:
http://portal.cce.edu.om/member/contentdetails.aspx?cid=628
Instructions
1. Plagiarism is a serious offence. In case of any plagiarism detected, penalty will be imposed
leading to zero mark.
2. Course work and reports should be solved by the individual/group.
3. Course work and reports should be submitted on time and submission after deadline will
be marked zero.
4. Course work should be submitted with an appropriate cover page, which can be obtained
from the departmental assistant at the department.
5. Name, student identification and title of the course work to be written clearly and legibly
on the cover page.
6. The completed course work is to be submitted to the departmental assistant on or before
the deadline and record your name, date of submission and signature in the book with the
departmental assistant.
Grading of Course work

Central Quality Office Rev:02 26th March 2013 4
F/QAP/021/001
CASE STUDY
Background of the problem
The demand for ammonia is on the increase. Emerging countries especially India and
China are looking forward to become self-sufficient in terms of food production, and are
seeking to produce more ammonia based fertilizers. The global demand for ammonia has
increased from 96 million tons in 2000 to 120 million in 2011 and it is expected to grow
further to reach the level of 160 million in 2020 (Source: Ammonia Global Market to 2020
– Food Security Concerns Driving Demand for Ammonia-Based Fertilizers, 2013).
Dhofar Fertilizers Company, a fertilizer manufacturing unit located in Sohar, has plans to
capitalize on this business opportunity by investing on a new ammonia plant.
Mr.Mohammed Al Farsi, the production manager, has been given the task to prepare a
cost estimation and feasibility study for this product. As a chemical engineer working in
the company you were delegated with this task. Prepare a comprehensive project report
to assess the economic viability of the project.
Tasks
1. Prepare a list of the major equipment required to start an ammonia plant having an annual
production capacity of 250,000 tonnes per year. (20 Marks)
2. Based on the purchased equipment cost, prepare a study estimate of the ammonia plant
(with an accuracy of ± 30 percent).
a. Determine the Fixed Capital Investment (FCI) (15 Marks)
b. Determine the Working Capital Investment (WCI) (05 Marks)
c. Determine the Total Capital Investment (TCI) (05 Marks)
3. Estimated the total production cost (TPC) per tonne of ammonia. (25 Marks)
4. Determine the Rate of Return (ROR) the project. Comment on whether this RoR is
justifiable to undertake the project. . (20 Marks)
5. Prepare a project feasibility report, which contains all of the above information laid out in
a standard feasibility report format. (10 Marks)
Central Quality Office Rev:02 26th March 2013 5
F/QAP/021/001
Additional Notes:
1. Assume any insufficient data needed for calculation.
2. If recent cost data is not available the cost could be determined using appropriate cost
indices/scaling factors.
3. The project feasibility report should contain all of the above information and should follow
a standard report structure.