DeShaylaTran

MTWR8:00am
4416

MATH1210:PipelineProject
DearCEO,
Afterassessingyourrequest,Ihaveconstructedaproposal,containingdiverging
scenarios,inordertodetectthepreeminentdecisionfortheVernalPipelineProject.Withinthis
report,Iwillhavearundownofallthepossibleoutcomesinordertodeterminethemostminimal
costfortheproject.

EventAcontainstwooptionswherethepipelinewillrunonlythroughBLMground,avoiding
privateground.
A)
1. Headingeastthroughthemountainandthensouthtotherefinery.
20mileseastthroughthemountain
i)

Costofdrillingpermileis$500,000

ii)

Costofmaterial,labor,andfeespermileis$300,000

iii)

Costofenvironmentalimpactstudy$100,000

iv)

Delayoftheprojectis$50,000permonth.(Delayof3monthsforstudy)

5milessouth
i)

CostofpipelineacrossBLMgroundis$300,000permile

20mi($500,000+$300,000)+5mi($300,000)+$100,000+3months($50,000)=$17,750,000


2.Runningwest,south,andtheneasttotherefinery
1mileswest + 5milessouth + 21mileseast = 27milesontotal
BLMgroundis$300,000permile

27mi($300,000)=$8,100,000

B.)Costofrunningthepipelinethoughprivatepropertyinastraightlinefromthewelltotherefiner

52 + 212 = C 2 C = 425 C=20.61552813

Distancebetweenthewellandtherefineryisapproximately20.61552813miles.
Costofrunningpipelineonprivatelandhasapriceof$200,000permileinadditionto
$300,000permileforlabor,material,andfees.
425miles($200, 000 + $300, 000) = $10,307,764.06

c.)MinimumcostofthepipelinethatincludesrunningthepipeonbothprivateandBLMground.

C ost = y($300, 000 + $200, 000) + (20 x )($300, 000)

y = x 2 + 25
C (x) = x 2 + 25(500, 000) + 6, 000, 000 300, 000x
C (x) = 12 (x 2 + 25)1/2 (500, 000)(2x) 300, 000
C (x) =

500,000x

x2 +25

300, 000 = 0

500, 000x = 300, 000x 2 + 25

500,000x
300,000

= x 2 + 25

( 500,000x
)2 = x 2 + 25
300,000
( 500,000x
)2 x 2 = 25
300,000
500,000 2
x 2 (( 300,000
) 1) = 25

x2 =
x =

25
500,000
( 300,000 )2 1)

25
500,000
( 300,000 )2 1)

x = 3.75

8, 000, 000 = 3.752 + 25(500, 000) + 6, 000, 000 300, 000(3.75)

10, 250, 000 = 3.752 + 25(500, 000) + 6, 000, 000 300, 000( 3.75)
Minimum:$8,000,000
Maximum:$10,250,000
Theminimumcostofthepipelineprojectwouldbe$8,000,000,when6.25milesisbuiltonprivate
ground,goingsoutheast,and16.25milesisbuiltonBLMground,headingeasttotherefinery.

Todiscoverthecostfunctionofthepipeline,ifitweretorunonbothgrounds,Isolved
forxthenfounditsderivative.Fromthederivative,Idiscoveredwhereitwasequaltozero,in
ordertofindthemaximumandminimumcostofconstructingthepipelineproject,becausethat's
whentheslopeofthefunctionequalszero.Takingintoconsiderationofalloftheoptions,itcan
beenseenthatthebestdecisionistohave6.25milesconstructedonprivategroundinaddition
to16.25milesonBLMground.Hopefullythisinformationwasusefultoreducingthecostofthe
pipeline.
BestRegards,
DeShaylaTran

Reflection
FromtakingCalculus,Idiscoveredhowtotakethederivativeofafunction.Thisisextremely
essentialintherealworldinbeingthat,itallowsustoestimatehowsomethingchangesovertime.it
couldvaryfromthepositionofanobjecttotheamountofmoneyonehasintheirbankaccount.I
believethatCalculusisausefultoolforreasonbeingthat,optimizationcanbeutilizedforeconomic
issuesinvolvingtheinterestrates.Beingabletopredictmyfuturefinancialstatuswillliftamassive
burdenoffofmyshouldersbecauseIcouldalwaysbepreparedfortheworse.Calculusisntreallyused
inmyareaofinterestduetothefactthatpsychologyfocusesmoreonstatsandisnotarequiredcourse.
Conclusively,Calculusisagreatcoursethatissignificanttoavarietyofdifferentmajorsandcanassist
onetosolvereallifepredicaments.