CAPEX investments

Phenyl magnesium bromide and boronic acid trimethyl ester react to give phenyl-boronic acid with high selectivity (about 90%) even at room temperature, which saves energy costs and the respective CAPEX investment [177]. The yield was about 25% higher with respect to industrial batch production. Purity of the crude product could be enhanced by about 10%, thereby allowing purification by favorable crystallization only, avoiding thus the distillation steps needed in the conventional process. 

Within the project box, the cashflow oi the project (or other investment opportunity) is the forecast of the funds absorbed and the money generated during the project lifetime. Take, for example, the development of an oil field as the investment opportunity. Initially the cashflow will be dominated by the capital expenditure (capex) required to design, construct and commission the hardware for the project (e.g. platform, pipeline, wells, compression facilities). 

Fiscal allowances for investment in capital items (i.e. capex) are made through capital allowances. The method of calculating the capital allowance is set by the fiscal legislation of the host government, but three common methods are discussed below. 

Economics The low-pressure technology and ease of operation ensures that the Innovene process is inherently safe, best-in-class environmentally and economically attractive with regard to both investment capex and opex. 

Before the introduction of income cap regulation it was sufficient to analyse investments with respect to costs (because of cost coverage). In an income cap (or price cap) regulatory regime distribution companies also evaluate projects with respect to income effects, since the difference between the allowed income (stated by the regulatory authorities) and the total costs (opex + capex) constitute the company profit. 

The main idea is to compare results between the cases corresponding to the relevant maintenance strategies. These results are ideally expressed in terms of discounted cost, integrating all cost contributors. This is the easiest way to provide decision support, because the higher CAPEX of e.g. investing in a new system compared to a smaller upgrade can be compared with the lower operating costs (OPEX and RISKEX) of the new system. 

An investment (CAPEX) comprises all the funds required to build and start up production assets. In addition, labor costs for planning, construction, installation. 

Depreciation is the cost item that reflects CAPEX and usually represents about 10% of the invested capital. The book value of fixed assets decreases year over year in the balance sheet of a company. 

The CAPEX is the initial investment costs which include material cost, fabrication cost, and installation cost. ASTM A135 steel is employed for piles and truss structures. Price of ASTM A135 is approximately 780 /ton. Using the dimensions of piles and truss structures, material costs could be... 

Table 6.2 Comparison of relative investment costs (CAPEX) and operating costs (OPEX) of membrane-based, solvent-based and hydrid processes for acid gas removal from natural gas...

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