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ANSWER TO QUESTION #3 OF "MONDAY MATH." POST 5

Question #3 What is the GROSS returns in dollars for the production of two algae products....oil and protien meal. We asume that the algae production will be equally
divided; 50% oil and 50% meal. Here are some additional
assumptions: oil sells for $80.00 per barrel, algae meal sells for $300.00 dollars per ton.

OK, here we go.....

Lets solve this problem for one days production first.

We know from Q #2 that we are producing 793.368 tons
of dry algae per day from a CO2 source of 25,000 scfm.

We assume that this dry algae is 50% oil and 50% meal.

793.368 tons per day of dry algae
./. 50% 50/50 oil and meal
= 396.684 tons of oil and tons of meal per day

Lets work with the meal first.

396.684 tons of meal per day
X $300 $300.00 per ton = ~what SBOM is worth
119,005.20 Dollars per day for algae meal

Now lets work the returns for the algae oil.

396.684 tons of oil per day
X 2,000 lbs. per ton
= 793,368 lbs. oil per day

793,368 lbs. oil per day
./. 7.5 lbs. per gallon of oil
105,782 gals of oil per day

105,782 gals of oil per day
./. 42 gals of oil per barrel
=2,518.6 barrels of oil per day
X $80 $ per barrel
=$201,488 Dollars per day from algae oil
119,005.20 Dollars from algae meal per day
=$320,493.20 Total gross dollars per day

WHAT IS RETURN PER MINUTE?

320,493.20 returns per day for oil and meal
./. 1,440 # of minutes in a day
= $222.56 Dollars per minute

WHAT IS THE DOLLARS PER YEAR??

$320,493.20 returns per day for oil and meal
X 365 Days per year
=$116,980,018.00 GROSS Return per year for a 25,000 scfm

NOW THERE IS A WORTH WHILE GOAL!

HAVE A GREAT WEEKEND

A man and his dog.

Alan Schaefer and "Annie"
Sat May 22 2010 09:51:27 AM by SAMDevelopment 1464 views

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