Capital sources

Degree of antiforeign or anti-United States discrimination Capital-sources factors... 

Port facilities Do United States or European capital sources favor loans here ... 

Where the process is a labor intensive, low-cost workers are required in numbers (for example, textiles and clothing). The cost of capital has little effect on the choice of location as capital sources can be from anywhere. The ability, however, to repatriate profits and the proceeds from the sales of assets and exposure to foreign exchange risk are important if the location options are abroad. This factor becomes more relevant, the greater the capital intensity of the project. 

Cash cost of production plus margin required to meet investor s cost of capital Source McKinsey... 

Table 32-4. Potential Capital Sources for Financing a New or Established Pharmacy Business...

Duty and tax drawbacks when imported goods are exported Availability of tariff protection Capital-sources factors Availability of local capital Costs of local borrowing Normal terms for local borrowing Availability of convertible currencies locally Modem banking system Government credit aids to new businesses Availability and cost of export financing, insurance Do United States or European capital sources favor loans here ... 

Figure 2.2 Flow of working capital. Source adapted from Ref. 27.

Capital sources Include credits and loans from banks, stocks, etc., as well as the net cash flow from selling the products. The sinks are the repayment of credits and of different debts, as well dividends to shareholders. 

We touched above on the impact of fiscal authorities and capital sources on the economic trade-off which determines the optimum choice of many plant design features. Their impact is such that they are worthy of further elaboration. 

Fig. 58.9 Urban communities and transport networks around the new capital. (Source Dulyapak Preecharushh)...

The cost of the capital depends on its source. The source of the capital often will not be known during the early stages of a project, and yet there is a need to select between process options and carry out preliminary optimization on the basis of both capital and operating costs. This is difficult to do unless both capital and operating costs can be expressed on a common basis. Capital costs can be expressed on an annual basis if it is assumed that the capital has been borrowed over a fixed period (usually 5 to 10 years) at a fixed rate of interest, in which case the capital costs can be annualized according to... 

As stated previously, the source of capital is often not known, and hence it is not known whether or not Eq. (A. 10) is appropiiate to represent the cost of capital. Equation (A. 10) is, strictly speaking, only appropriate if the money for capital expenditure is to be borrowed over a fixed period at a fixed rate of interest. Moreover, if Eq. (A. 10) is accepted, then the number of years over which the capital is to be annualized is unknown, as is the rate of interest. However, the most important thing is that even if the source of capital is not known, etc., and uncertain assumptions are necessary, Eq. (A. 10) provides a common basis for the comparison of competing projects. 

The choice of a mass spectrometer to fulfill any particular task must take into account the nature of the substances to be examined, the degree of separation required for mixtures, the types of ion source and inlet systems, and the types of mass analyzer. Once these individual requirements have been defined, it is much easier to discriminate among the numerous commercial instruments that are available. Once suitable mass spectrometers have been identified, it is then often a case of balancing capital and running costs, reUability, ea.se of routine use, after-sales service, and manufacturer reputation. 

The abrasive industry is highly competitive and many small companies worldwide successfully compete by specializing in a particular segment of the business, eg, disk wheels, mounted points, and mbber wheels. Costs in the fused abrasive industry are primarily in materials and electric power. Thus manufacturers seek out plant sites having the lowest power costs. Costs for coated abrasive manufacturers are capital and labor intensive and they seek out sources of low cost labor. 

Natural gas is by far the preferred source of hydrogen. It has been cheap, and its use is more energy efficient than that of other hydrocarbons. The reforming process that is used to produce hydrogen from natural gas is highly developed, environmental controls are simple, and the capital investment is lower than that for any other method. Comparisons of the total energy consumption (fuel and synthesis gas), based on advanced technologies, have been discussed elsewhere (102). 

The upper limit of efficiency of the biophotolysis of water has been projected to be 3% for weU-controUed systems. This limits the capital cost of useful systems to low cost materials and designs. But the concept of water biophotolysis to afford a continuous, renewable source of hydrogen is quite attractive and may one day lead to practical hydrogen-generating systems. 

---