Document yk1o8nJ4rVoK6dgxYpkzmJjnD
CI
THE DOW CHEMICAL COMPANY
P. O. BOXi 625 September 7, 1966
MIDLAND. MICHIGAN 4SS41
Joseph J. Kelly, Esq. Johns-Manville Research Center Manville, New Jersey
08835
j"/7 ' nu*
Dear Mr. Kelly:
Mr. J. W. Mighton of our economic evaluation group with the technical assistance of Dr. Harmer has worked out two cases for the economic evaluation of irradiated PVC Styrene Pipe. Three copies of this study are enclosed.
The basic assumptions are numbers 1 through 10 at the top of the page and the case for 9% and 27% Styrene is calculated through. We were rather pleasantly surprised to find that both cases actually show a dollar savings without assuming any increase in the rate of extrusion.
After thinking for some time about how to describe this fairly complicated economic evaluation exercise to you, I concluded that it would be best if one of your people familiar with such calculations could talk to Mr. Mighton on the telephone. His number is: (517) ME6-J4505.
Sincerely,
I
Director of Plastics Research
RFB/bp end. cc: J. W. Mighton
D. E. Harmer N. J. Rudy
r*rtNT otvT.
MTC 017262
PRELIMINARY ECONOMICS PVC/STYRENE IRRADIATED PIPE
BASES ;
1. ASSUME 3" I.D. SCHED. 40 PIPE,, 50% NSF GRADE, 50% OTHER
2. TWO LEVELS STYRENE: 3. WEIGHT ~/FT.
9% T734
27% T726
4. CAPACITY #/YR. FT./YR.
5 MM 3.7 MM
4.67 MM 3.7 MM
5. DOSE REQUIRED, MEGARADS 6. CESIUM SOURCE1 REQ'D, CURIES
0.3 157,000
1.2 592,000
COBALT SOURCE REQ'D, CURIES
42,000
157,000
7. AM' T . EXPOSED2, #/HR .
718 675
8. STABILIZER LEVEL2, AVE. PHR
1.8 1.0
9. RESIN SAVINGS BASED ON PVC @ $ .135/# & STYRENE @ $.09/#
10. EXTRUSION RATE ASSUMED SAME AS REGULAR PIPE (SHD ACTUALLY INCREASE).
COSTS:
RAW MAT'L. SAVINGS, PVC STAB.
LABOR, S7850/YR. UTILITIES, $3600/YR. MAINT, DEPR., I & T, F.E.
S31.540/YR. SOURCE ADDITION4 & AMORT.
SAVINGS PER YR.
9%
CESiu&t
s+voow# +.0132
-.0015 -.0007
CobALT
$+.oo20/# +.0132 -.0015 -.0007
-.0063 -.0005 $+.0062/# $31,000
-.0063 -.0012 $+.0055/# $27,500
27%
Cesium
cobalt
s+.0089/# 5+.00S9/#
+ .0196
+ .0196
-.0016
-.0016
-.0007
-.0007
-.0067 -.0012 S+ .0183/# $85,400
-.0067 -.0047 S+.OJLW# S69,070
CAPITAL:
EQUIP. RADIATION CAVE SOURCE ADD'N'L. WORKING CAP.,
INVENTORIES
RETURN ON INVESTMENT
$77,000 71,000 39,000
15,000 $202,000
15.3%
. $77,000 71,000 30,300
15,000 $103,300 .
14.2%
$77,000 71,000
148,000
13.000 $309' OOl)'
27.6%
$77,000 71,000 92,600
13.000 $253,6o0
27.2%
1CESIUM AVAILABLE IN 18 MOS.
2BUNDLES OF 20 FT. LONG PIPE IS CONVEYED VERTICALLY THROUGH CAVE @3.35 FT./HR. ^ASSUMING 50% PIPE PRODUCTS USE 2 PHR TIN STABILIZER @ $2.25/# & 50% USE 5 PHR
LEAD @ .25/# WITH REGULAR COMPOUNDS AND STYRENE COMPOUNDS REQUIRE 1/2 & 2/7 OF THIS AM'T. RESPECTIVELY
4APPR0X. 1.75% OF CESIUM IS ADDED EACH YEAR (OR 7% EACH 4 YRS.) TO MAINTAIN
CURIE LEVEL. APPROX. 10% OF COBALT IS ADDED EACH YEAR TO MAINTAIN CURIE LEVEL.
JWM 082966
MTC 017263