Investment estimated

The three general types of cost estimates needed are equipment cost, capital investment cost, and product cost. Equipment cost estimates are needed as part of the capital investment estimate, which indicates the amount of money that is needed to start the venture. Both of these estimates are reflected in the product cost estimate, which is important to both management and marketing groups. 

Capital Investment Cost. The capital investment involved in a proposed project is important because it represents the money that must be raised to get the project started, is used in profitabiUty forecasts, and is reflected in the estimated manufacturing cost of a product. The capital investment is classified herein as fixed capital, working capital, and land cost. Sample capital investment estimate forms provide for separate materials (M) and labor (L) categories, or just combined M L figures. 

It is reported that between 10 and 11 million cars are taken apart every year in North America once the metallic portion has been recovered from the crushing operation, the remainder - representing over 20% of the total mass or 3.5 million tons - must be eliminated. Pyrovac, in collaboration with Universite Laval and under the sponsorship of E.T.P. Technologies, recently undertook a research programme to recover valuable products from this Automobile Shredder Residue. A process flow sheet for a 4000 kg/hr plant is presented, with fixed capital investment estimated to be 5 million US dollars. Details are given. 

Equipment Cost Data The foundation of a fixed capital investment estimate is the equipment cost data. From this information, through the application of lactors or percentages based upon the estimator s experience, the fixed capital investment is developed. 

Contingencies An allowance for unforeseeable elements of cost in fixed investment estimates that previous experience has shown to exist. 

Space Velocity = 20,000 h-1 N 2O conversion = 90% No Retrofit Factor Includes the costs of LPG as reducing agent at 0.35 EUR/kg, which includes transportation casts. All cost and investment estimates are based on 2001 casts. 

DSM Melamine plans to start up a new 30,000 tonne per year melamine plant towards the end of 2002. The investment estimate is EUR 90 million. However part of the investment will be used to expand urea capacity at the site115. 

Load-centered generation relieves much of the strain on the transmission grid imposed by central-station generation and allows utility planners to defer transmissionline investments. Estimates of the savings from these deferred investments range from about one cent to seven cents per kilowatt hour. 

Plant Site Scheduled Startup Design Capacity (Mbpd) F-T Unit Technology Investment Estimate/Daily Capacity Barrel ( /bbl)... 

Figure 6-4 shows the relationship between probable accuracy and quantity and quality of information available for the preparation of these five levels of estimates. The approximate limits of error in this listing are plotted and show an envelope of variability. There feaHarge probability that the actual cost will be more than the estimated cost where information is incomplete or in time of rising-cost trends. For such estimates, the positive spread is likely to be wider than the negative, e.g., +40 and - 20 percent for a study estimate. Table 2 illustrates the wide variation that can occur in the cost of making a capital-investment estimate depending on the type of estimate. 

For use with process-equipment estimates and chemical-plant investment estimates, the Marshall and Swift equipment cost indexes and the Chemical Engineering plant cost indexes are recommended. These two cost indexes give very similar results, while the Engineering News-Record construction cost index, relative with time, has increased much more rapidly than the other two because it does not include a productivity improvement factor. Similarly, the Nelson-Farrar refinery construction index has shown a very large increase with time and should be used with caution and only for refinery construction. 

Results obtained using this procedure have shown high correlation with fixed-capital investment estimates that have been obtained with more detailed techniques. Properly used, these factoring methods can yield quick fixed-capital investment requirements with accuracies sufficient for most economic-evaluation purposes. 

ORGANIZATION FOR PRESENTING CAPITAL INVESTMENT ESTIMATES BY COMPARTMENTALIZATION... 

To complete the initial project investment estimates, identify the cost of raw materials, people, training, time, capital expenditures, and other costs that will be required to bring your innovation to market. You can use Innovation Financial Management (Technique 11) to help you identify investment costs relative to your assumptions. 

Use cost correlation to estimate investment estimate product cost using %. Define risk and expected return Define tax and insurance impacts TNS renewable resources Bioassimilimlation of feedstock, product, byproducts, intermediates, and wastes... 

Note Costs may be calculated for these factors to support the indicated values with economics. In this project, investment estimates were provided for major equipment, heat exchangers of alternate metallurgy, and terminal separator modifications. 

Comparative study in terms of economic points of view should be undertaken to have a clear view on the practicability of membrane contactor systems before they can be further developed to the full-scale level. Thus, capital expenditures and rate of investment estimation for future pilot plant implementation of this technology should be determined. 

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