Equipment purchase costs

ECi = equipment purchased cost (when available) for year represented by E... 

Note that fm is not equal to the ratio of the metal prices, as the equipment purchased cost also includes labor costs, overheads, fabricator s profit, and other costs that do not scale directly with metal price. Equation 6.11 can then be expanded for each piece of equipment to give... 

The total equipment purchase cost was estimated to be around 2.8 million. The most expensive piece of equipment is the bioreactor used for cell culture and virus propagation, priced at 506,000. The cost of unlisted equipment (including the equipment used in the inoculum preparation section) was assumed to represent 20% of the total equipment cost. 

Step 2 Using the data in Step 1 with f.o.b. equipment purchase cost data, add to the equipment list the cost, Cp, and the corresponding cost index, 4, of the cost data. In the Guthrie method, the f.o.b. purchase cost is a base cost corresponding to a near-ambient design pressure, carbon steel as the material of construction, and a base design. 

The process system consists of two long-tube vertical evaporators, a draft-tube baffled crystallizer, a rotary-drum vacuum filter, and a direct-heat rotary dryer. Also, pumps are needed to move the solution from evaporator 1 to evaporator 2, to recycle the filtrate from the filter to the crystallizer, and to move the magma from the crystallizer to the filter and a heat exchanger is needed to heat the recycle filtrate. However, the purchase costs for the three pumps and the heat exchanger are not considered here because examples for these types of equipment are presented in Section 16.5. For the equipment considered here, assume fabrication from stainless steel, with a material factor of 2 for the ratio of stainless steel cost to carbon steel cost. For the process, using the following size factors and the equations in Table 16.32, the estimated f.o.b. equipment purchase costs at a CE index of 394 are included in the following table. 

Fixed-Capital Investment Summary. In this section, the fixed-capital investment is related to the purchase cost of the equipment items. If desired, the equipment list and the list of equipment purchase costs can be combined. The methods for estimating the fixed capital investment, beginning with the purchase costs, should be clearly stated. If a factored cost estimate is used, the overall factor or individual equipment factors should be noted. 

Positive displacement conpressors, performance curves, 632-638 Postmortem analysis, 815-816 Postrationalization, 817-818 Pot still distillation, 92 Power recovery equipment purchase cost curves, 931 table of heuristics, 376 turbines (expanders), simulating, 434 PPA (Pollution Prevention Act), 881-883 PR (Peng-Robinson) model, phase equilibria simulation, 446- 48 Predict, authenticate, reevaluate (PAR) process, 366-367 Predicting... 

Eor this example the cost of the battery limits plant is about four times the purchase cost of the equipment. This number is about two for module I-type plants designed and iastalled by the fine chemicals company itself, and about six for expanded module IV-type plants designed and built by contractors. 

Equipment Costs. Equipment costs include the purchased cost of process and materials handling equipment, storage faciUties, waste treatment equipment, stmctures, and site service faciUties. Installation costs such as insulation, piping, painting and finishing, foundations, process stmctures, instmmentation, and electrical service connections are estimated or factored separately. Actual quoted prices from suppHers are the best data, but these are not usually available when estimates are made. The quick, inexpensive cost estimates are based largely on personal cost files, internal company cost data, or pubUshed cost correlations. 

Published Cost Correla.tions. Purchased cost of an equipment item, ie, fob at seller s site or other base point, is correlated as a function of one or more equipment—size parameters. A size parameter is some elementary measure of the size or capacity, such as the heat-transfer area for a heat exchanger (see HeaT-EXCHANGETECHNOLOGy). Historically the cost—size correlations were graphical log—log plots, but the use of arbitrary equation forms for correlation has become quite common. If cost—size equations are used in computer databases, some limit logic must be included so that the equation is not used outside of the appHcable size range. 

Performance Data for Vacttum-Shelf Dryers The purchase price of a vacuum-shelf dryer depends upon the cabinet size and number of shelves per cabinet. For estimating purposes, typical prices (1985) and auxiliai y-emiipment requirements are given in Table 12-12. Installed cost of the equipment will be roughly 100 percent of the carbon steel purchase cost. 

To a first approximation, the cost of a single MPI is assumed to vary with scale (vessel volume or process throughput) on an exponent of 0.7. The value of this exponent does vary from one plant item type to another and while it typically lies in the range 0.5-0.9 [40, 42] for some equipment types (e.g., centrifuges) it may be at or above unity. This indicates that the purchased cost of equipment per unit production rate, say /(tons per year), generally increases as manufacturing scale decreases well known as economies of scale, related to large bulk chemical plants. 

Using Eqn. (7..7-4) to calculate the purchased cost of equipment, the following expression is obtained for the total equipment costs ... 

Capital cost estimates for chemical process plants are often based on an estimate of the purchase cost of the major equipment items required for the process, the other costs being estimated as factors of the equipment cost. The accuracy of this type of estimate will depend on what stage the design has reached at the time the estimate is made, and on the reliability of the data available on equipment costs. In the later stages of the project design, when detailed equipment specifications are available and firm quotations have been obtained, an accurate estimation of the capital cost of the project can be made. 

Table 6.2. Purchase cost of miscellaneous equipment, cost factors for use in equation 6.7. Cost basis mid 2004...

Estimate the purchase cost of the major equipment items. Use Figures 6.3 to 6.6 and Tables 6.2 and 6.3, or the general literature. 

Total purchase cost of major equipment items (PCE)... 

The relative cost of equipment made from different materials will depend on the cost of fabrication, as well as the basic cost of the material. Unless a particular material requires special fabrication techniques, the relative cost of the finished equipment will be lower than the relative bare material cost. For example the purchased cost of a stainless-steel storage tank will be 2 to 3 times the cost of the same tank in carbon steel, whereas the relative cost of the metals is between 5 to 8. 

If the corrosion rate is uniform, then the optimum material can be selected by calculating the annual costs for the possible candidate materials. The annual cost will depend on the predicted life, calculated from the corrosion rate, and the purchased cost of the equipment. In a given situation, it may prove more economic to install a cheaper material with a high corrosion rate and replace it frequently rather than select a more resistant but more expensive material. This strategy would only be considered for relatively simple... 

In addition to the purchased cost of the equipment, investment is required to install the equipment. Installation costs include ... 

The total capital cost of the installed battery limits equipment will normally be two to four times the purchased cost of the equipment1112. 

Capital costs can be estimated by applying installation factors to the purchase costs of individual items of equipment. However, there is considerable uncertainty associated with cost estimates obtained in this way, as equipment costs are typically only 20 to 40% of the total installed costs, with the remainder based on factors. Utility investment, off-site investment and working capital are also needed to complete the capital investment. The capital cost can be annualized by considering it as a loan over a fixed period at a fixed rate of interest. 

For instance, equipment made of monel generally costs 6.5 times as much as the same item constructed of carbon steel. If 25% of the equipment purchased for a plant were made of monel, this would increase the equipment costs by 237%, and the factor cost estimate would be 2.37 times that for a plant constructed of carbon steel. This is unreasonable, since the cost of buildings, roads, wiring, piping utilities, insulating, and instrumentation are independent of the materials of construction. In fact the only major changes would be in the process piping, which,... 

Treatment systems should be demonstrated to be effective, and expandable (or reducible), in a stepwise modular fashion to ensure efficient design and operation. At many sites, it is cost-effective to install several temporary treatment systems in parallel configuration, and remove them as the need is diminished until the stable rate is achieved where a single unit can handle the load. After careful analysis, it may be determined that the best procedure is to install and operate the system at the projected long-term rate from the onset. Although this plan may extend the longterm remediation time, cost savings on equipment purchase (or lease) or initial operation labor may be justified. 

Including 20 ft2 for miscellaneous items not identified in this section, 110.3 ft2 must be rented, at an annual cost of 44,100/yr. Note that this moderately sized complex is added to an existing electronic materials manufacturing facility. Hence, no direct charges are added for infrastructure, such as non-clean room and office space. The total purchase cost, 6,492,100, provides equipment modules that require small installation costs, on the order of 1% that is, 65,000. Note also that two PECVD reactors are provided to assure uninterrupted operation when the plant is in operation, around the clock, 330 day/yr. While the robot loads and unloads one of the reactors, the other reactor is in operation. 

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