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Capital investments estimating major equipment costs

Piping is a major item in the cost of chemical process plants. These costs in a fluid-process plant can run as high as 80 percent of the purchased equipment cost or 20 percent of the fixed-capital investment. There are essentially two basic methods for preparing piping-cost estimates-the percentage of installed equipment method and the material and labor take-off method. Several variations of each method have appeared in the literature. [Pg.497]

The two major costs associated with evaporators, as with any process equipment, are capital investment and operating costs. The best estimate of the installed cost of evaporation systems is, of course, a firm bid from a vendor. The installed cost, however, can be estimated based on the heat transfer surface area, as in Peters and Timmerhaus. Costs taken from published references must be adjusted for changes subsequent to the time of publication. To do this, one may use an index such as the Marshall and Swift allindustry index. The value of this index is published each month in Chemical Engineering, a McGraw-Hill publication. Further information on the use of this and other cost indices as well as their histories are available, for example, in Peters and Timmerhaus and Ulrich.f Variation of purchased evaporator costs with material of construction and pressure can also be found in Ulrich. ... [Pg.1606]

Total fixed capital cost estimation, total fixed capital investment = 3 to 10 (4 to 5 usual) X FOB major pieces of equipment. The factor decreases as more alloys are used in the process. [Pg.21]

Aspen IPE usually begins with the results of a simulation from one of the major process simulators (e g., ASPEN PLUS, HYSYS, CHEMCAD, and PRO/II), it being noted that users can, alternatively, provide equipment specifications and request investment analysis without using the process simulators. In these notes, only results from ASPEN PLUS are used to initiate Aspen IPE evaluations and only capital cost estimation is emphasized. Readers should refer to the Aspen IPE User s Guide (press the Help button in Aspen IPE) for detailed instructions, explanations, and for improvements in new versions of the software system. [Pg.789]

Two tasks are required to conduct an NPV analysis. First, investment and revenues must be estimated. For a retrofit project, a total capital cost required becomes the investment. The total cost should include all possible major capital cost related items such as equipment, installation, infrastructure, downtime, and so on. The revenues are the net benefits expected in the future. Second, an appropriate rate of return must be identified. Most investments undertaken by companies are financed with retained earnings with profits from previous activities instead of borrowing. Thus, once a company approves and undertakes one investment, it cannot execute other investments at the expense of the approved investment, and the interest rate has to account for the internal corporate value of funds. As a result of these factors, interest rates of 10-20% are common for evaluating the NPV of projects. [Pg.469]


See other pages where Capital investments estimating major equipment costs is mentioned: [Pg.924]    [Pg.591]    [Pg.1314]    [Pg.503]    [Pg.505]    [Pg.573]    [Pg.590]    [Pg.60]    [Pg.2298]   
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