Capital outlay

In 1986 when the oil price crashed to 10 a barrel, operators began to look very hard at the requirements for offshore developments and novel slimline, reduced facilities platforms began to be considered. The reduced capital outlay and early production start up capability, coupled with the added flexibility, ensured that all companies now consider subsea systems as an important field development technique. Although the interest and investment in subsea systems increased dramatically, subsea systems still had to compete with the new generation of platforms, which were becoming lighter and cheaper. 

Equations (9-59), (9-60), (9-61), and (9-62) may be used as they stand to assess expenditure on energy-conservation measures since a constant amount of energy is saved in each year subsequent to the capital outlay. However, the annual cash flows Acf corresponding to the energy savings remain constant only if there is no inflation or if the money values are corrected to their purchasing power at the time of the capital expenditure. 

With a cost of capital of 10 percent the various cash flows can be discounted and summed. Thus for the base cases Z Af = 2,815,600, Z Ajp/d = 754,716, Z Aofd = 614,457, and Z C c/d = 61,446. With corporate taxes payable at 50 percent the aftertax cash flows of the first three items are (1 — 0.50) of the sums calculated above. The discounted working capital and the fixed-capital outlay are not subject to tax. These most probable values are listed and summed in Table 9-11 and, after adjustment for tax, give the modal value of the (NPV) as 276,224. 

Research and development ac tivities do not, in themselves, produce a salable product. Thus, they cannot direc tly generate a return on capital outlay. A successbil research and development projec t is one that results in an activity that earns revenue for the company. The life cycle of the revenue from an individual product may be as shown in Fig. 9-26. 

The annualized capital cost (ACC) is the product of the CRF and TCC and represents the total instaUed equipment cost distributed over the lifetime of the project. The ACC reflects the cost associated with the initial capital outlay over the depreciable life of the system. Although investment and operating costs can be accounted for in other ways such as present-worth analysis, the capital recovery method is preferred because of its simplicity and versatUity. This is especiaUy true when comparing somewhat similar systems having different depreciable lives. In such decisions, there are usuaUy other considerations besides economic, but if all other factors are equal, the alternative with the lowest total annualized cost should be the most viable. 

There is a clear correlation between quality or cost of materials and the durability/life expectancy of buildings. Greater resistance of better materials to wear and tear can be assumed, with obvious implications on future maintenance. Striking the best balance between initial capital outlay and maintenance cost requires complex calculations that take into account such intangibles as future interest rates and taxation of building operations. 

Contract hire. Although not strictly a source of outside finance, this is a method of avoiding capital outlay, especially favored for vehicles. Again, there are many varying systems to be found. 

Regenerators require larger capital outlay and more involved civil works as compared with recuperators. 

In the formulation above, the discrete optimization on the number of compressors has been transformed into a continuous optimization on suction and delivery pressures. This transformation was made possible by the form of the compressor cost function which vanishes when pd = ps. However, if the compressor costs include a fixed capital outlay, i.e., the cost function is a linear function of horsepower with a nonzero constant term, then a branch and bound procedure must be used in conjunction with the GRG method. 

There will often be areas where either technique could be used, and in such cases gc is usually chosen. One reason for this is that hplc tends to be a more expensive technique than gc, both in capital outlay for the instrument and in day-to-day running costs. The gc separation would also probably be faster and more sensitive. 

The higher the NPV among alternative investments with the same capital outlay, the more attractive the investment. 

Figure El 3.4b shows two different forms for the annualized capital cost of the compressors. Line A indicates the cost is a linear function of horsepower [ 70.00/(hp)(year)] with the line passing through the origin, whereas line B assumes a linear function of horsepower with a fixed initial capital outlay [ 70.00/(hp)(year) + 10,000] to take into account installation costs, foundation, and so on. For fine A, the objective function in dollars per year for the example problem is...

X-ray fluorescence spectrometry was the first non-destructive technique for analysing surfaces and produced some remarkable results. The Water Research Association, UK, has been investigating the application of X-ray fluorescence spectroscopy to solid samples. Some advantages of nondestructive methods are no risk of loss of elements during sample handling operations, the absence of contamination from reagents, etc. and the avoidance of capital outlay on expensive instruments and highly trained staff. 

Foley develops a circuit of capital that locates money outlays as the starting point (ibid. 67). The money capital outlay is represented by C(l), where t is the current period of production. These capital outlays are used to... 

Under simple reproduction, the receipts from sales provide sufficient money revenue to meet the capital outlays in the next period ... 

Because of the time delay between sales in one period and capital outlays in the next period capitalists set aside a hoard of money. As mentioned in Chapter 3, when capitalists are ready for new capital outlays money is drawn from the money hoard. De Brunhoff (1973 38-44) shows how money hoards are essential to the circulation of money and commodities in Marx s system, enabling a continuous production process. As lucidly stated by Marx (1964 136), The hoards thus act as channels for the supply or withdrawal of circulating money, so that the amount of money circulating as coin is always just adequate to the immediate requirements of circulation. ... 

However, under expanded reproduction a much more demanding requirement is placed on the circuit of money. Capitalists increase then-capital outlay on new elements of constant and variable capital. If we define dC as new constant capital and dV as new variable capital, there is an extra amount of money (dC + dV) that is required to service expanded... 

It follows that if capitalists decide to expand their capital outlays this places a drain upon the money hoard, which is not sufficiently replenished by sales. Moreover, as capital expands in each period the shortfall will get bigger ... 

The conclusion drawn by Foley is that new borrowing is required to meet this shortfall. There is a paradox of borrowing, the borrowing requirement contrasting with the received opinion in Marxist circles that all investment is drawn from an existing pool surplus value.1 With B(t) defined as new capital borrowing (ibid. 89), capital outlays under expanded reproduction are met by setting... 

Borrowing in period t is used to supplement the money hoard inherited from sales in period t - 1. At the end of period t, capital outlays lead to expanded sales, which enhance the size of the money hoard. Under expanded reproduction, capital outlays are met from a growing hoard of money that is replenished by a combination of borrowing and sales. 

In (5.5) borrowing is used to finance all money capital outlays on capitalist consumption (u) and new constant and variable capital (dC + dV) in (5.6) this outlay has a multiplier effect (in proportion m) on total sales. As a consequence, the money circuit is viable without the requirement of a money hoard, accumulated from the previous period s sales. 

Such conclusions (termination) can prevent economic losses or disasters with a minimum of capital outlay. The TOS comprises everything needed to improve on any inferior sampling process or procedure. The present chapter is but an introduction sufficient for the process analytical domain. The reader is also referred to the literature list and the secondary literature referenced herein. 

Hand in hand with lessons learned is the preplanning process for facility projects requiring major capital outlays. Preplanning is a recognized industry best practice that is applicable to different types of facilities, technologies, and projects (DuPont, 1995). It is intended to meet many stakeholder needs, to avoid injuries, and to save time and money. 

Atc Annual capital outlay MACRS Modified Accelerated Cost ... 

Generally, capital outlay costs are lower because the modular, enclosed equipment is rented or leased during the remediation period at a fraction of the cost of a permanent plant (D13109Z,... 

One of the main issues confronting today s food scientist is the development of new products for the market. Today s consumer oriented products must address the consumer s desire and demand for nutritionally sound, highly flavorful, and more natural products. Food scientists must also address the ergonomics of the situation and maintain maximal utilization of food crops within that society while at the same time maintaining capital outlays. These are difflcult tasks for today s food and agricultural scientist to meet. 

The scope of the economic evaluation includes estimation of capital cost figures for a nitric add plant producing 280 tonnes/day of a 60% product. Following this capital cost estimation the total annual operating costs are estimated, both variable and fixed components being considered. Also considered is the cost of providing finance for the initial capital outlay at 25% interest per annum. 

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