Economics amortization

Since power is a substantial component of the fixed operating cost of a unit, the operating cost would run approximately seven times more on a scrubber installation. The installation costs of a hot-rolled steel precipitator to handle 100,000 cfm would be between 3.50 and 4.50/cfm as opposed to 1.40 to 1.80/cfm for a venturi scrubbing system. Although the initial capital expenditure is high for the precipitator, if the total operating and capital costs are amortized over an acceptable period of time, 8 to 10 years, the precipitator will prove to be the. lore economically feasible choice because of its low operating and maintenance costs. 

Although the energy cost is continuous and the capital costs are one time, it is common to spread out (or amortize) the capital cost over a period of Y years i.e., over the economic lifetime of the pipeline. The reciprocal of this (X = 1/ Y) is the fraction of the total capital cost written off per year. Taking 1 year as the time basis, we can combine the capital cost per year and the energy cost per year to get the total cost (there are other costs, such as maintenance, but these are minor and do not materially influence the result). 

Although the initial capital expenditure is high for the precipitator, if the total operating and capital costs are amortized over 8 to 10 years, the precipitator will prove to be the more economically feasible choice because of its low operating and maintenance costs. 

Several alternate routes to MMA eliminate ammonium bisulfate byproduct—really a coproduct since its 1.5 tons for every 10 tons of MMA produced. They also do not involve HCN, always a safety problem in the plants and sometimes an unreliable market. Although these routes are more efficient and economical, American producers have stuck to the acetone cyanohydrin route. The plants are fully amortized and by staying with the old technology, producers can avoid the large capital investments associated with a new plant. 

For an automatic method to be preferable purely on economic grounds, its cost must be less than the manual cost by at least an amount equal to the cost of the automatic equipment amortized over a period of three to five years. For many of the more expensive instruments, particularly those in the clinical market, leasing agreements are common and in these cases the annual cost must be less for the automated regime. However, this simple algebraic treatment is very approximate and takes no account of the differences in reagent costs, power requirements, and supervisory cost between the two methods. 

A profitability worksheet is a simple economic evaluation intended to calculate rough estimates of projected costs, savings, and payback periods associated with each waste reduction option. These worksheets do not take into account amortization, depreciation, or tax factors. 

Describe flowsheet required or used and whether one or several bodies are required (or the economic factors which are to be used in determining the number of stages or effects. These factors include steam cost, water cost, electricity cost, amortization period, etc)... 

The total cost is the economic factor that normally decides the final cooling tower design however, the optimum selection must include not only the capital investment, but also all operating costs based on the period of amortization. Other factors to be considered are general design, manufacturer, replacement parts, flexibility of operation, etc. Costs include capital investment and operating costs. 

P denotes the economic value of the in- and outgoing exergy streams K denotes the capital investment, appropriately amortized over time... 

In eleclrodialysis, there are three categories or costs those that increase with corrent density (the cost of eaergy) those that decrease with current density (the coef of membrane replacement and amortization of capital investment) and those that are essentially invariant with current density (cost of chemicals, maintenance, and labor). Because two of these categories of costs vaty in opposite directions with current density, there is an economically optimum corrent density. However, for most applications of electrodi-alysis, the limiting current density is lower than the optimum current density. Therefore, determination of the limiting current density i, m by the previously described methods is usually the first step in design. 

The process design and economics are closely related in electrodialysis. The total process costs are the sum of flxed charges associated with amortization of the plant capital costs and operating costs, such as energy and labour costs. Membrane replacement costs are sometimes regarded as a separate item because of their relatively short life of 5 to 7 years. 

The aim of the present study was to investigate the effectiveness of passive protections of tankers in the reduction of the overall risk due to LPG road and rail transportation. In the first part of the study (Section 2) the effect of the thermal protection on the time to BLEVE was analyzed. In the second part of the study (Section 3), the results obtained were used to investigate the potential effect on risk due to the reduction of the probability of the fired BLEVE, following the adoption of the road tanker coating. A case-study derived from actual LPG road transportation scenario in Europe was analyzed, and a Transport Risk Analysis (TRA) was performed. Thus, TRA results allowed to widen the economic aspect of this issue (Section 3). Costs were identified and assessed considering also the amortization and taxes, while benefits were assessed taking into account the risk reduction as a number for life loss reduction. Finally, the comparison between costs and benefits provided an evaluation of the economic impact connected with the adoption of passive fire protections of tankers. 

Contemporary observers were stunned by the high annual dividends the leading dyestuffs firms paid from the 1890s to World War I between 18 and 26%. ° But hidden assets, for times of economic crisis like that after 1873, loans to pay back, a quick amortization of plants and equipment, and piling up of reserves, increased real fixed capital, so that paid dividends did not reflect the real value of these firms. Probably dividends should be halved to reach a serious level of valuation. More significantly, these dividends were paid by oligopolistic firms that had divided the German mar-... 

It is interesting to compare the economics of gas centrifugation to gaseous diffusion, albeit crudely. London (1961) divides enrichment cost into two principal categories (1) specific investment, i.e., capital cost per separative work unit (SWU) amortized over the plant life, and (2) power cost per SWU. (SWU, which is a function of quantities and concentrations of feed, product, and waste provides a quantitative measure of the isotope separation task for any conceivable process.) The latter comprises the bulk of operating costs. The estimates, which are crude, clearly demonstrate an advantage for gas centrifugation. 

The optimum or economic thickness of insulation is determined by optimizing the cost of energy and the costs of insulation. A discounted-cash flow analysis of insulation economics must be conducted using appropriate costs for investment and amortization periods. Insulation for energy conservation is an excellent investment and when optimized, a balance between investment and savings will be obtained. 

The above-mentioned analyses apply to economic conditions in the United States, in the 2013 time frame. Capital cost amortization can be much different in other countries, depending on the effective interest rate. Japan, for instance, has economic arrangements which result in an effective interest rate in the 2% range. Countries with high inflation rates might have much higher interest rates than those currently applying in the United States. 

In 2013, wholesale power rates in the United States have been in the 3 to 5 cents/kWh range, except during peak power periods. Thus, nuclear power, from existing plants, would appear to be quite competitive economically, with the current power rates. Obviously new plants, with the high capital cost, if amortized over a 30-year period, do not appear economical in the present electrical supply market. However, it is quite likely that the average wholesale electrical prices will increase in the next several years, to be more in line with the prices in the prerecessions days (before 2008). 

Analysis on the spot" eliminates the complications of sample transport, and it offers the potential for saving a considerable amount of time. This in turn facilitates rapid processing, an especially important factor when process control is dependent upon analytical data (e.g.. in blast furnace operation). Analysis of this type is always associated with a very specific objective, usually involving a single analytical method and a single specialized type of instrumentation, and its economic viability must be critically evaluated on a case-by-case basis. Costs related to acquisition, amortization, and the repair of expensive equipment must all be considered, as must demands for personnel — who are likely to require special skills and training. 

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