Expense operating

Land purchases and many of the costs associated with faciUty development can be accompHshed with long-term loans of 15 to 30 years. Equipment such as pumps and tmcks are usually depreciated over a few years and are funded with shorter-term loans. Operating expenses for such items as feed, chemicals, fuel, utilities, salaries, taxes, and insurance may require periodic short-term loans to keep the business solvent. The projected income should be based on a reaUstic estimate of farmgate value of the product and an accurate assessment of anticipated production. Each business plan should project income and expenses projected over the term of all loans in order to demonstrate to the lending agency or venture capitaUst that there is a high probabiUty the investment will be repaid. 

Ref 91. Discounted cash-flow models account for use of capital, working capital, income taxes, time value of money, and operating expenses. Real after-tax return assumed to be 12.0%. Short-rotation model used for sycamore and poplar. Herbaceous model used for other species. Costs ia 1990 dollars. Dry tons. 

Hydroperoxide Process. The hydroperoxide process to propylene oxide involves the basic steps of oxidation of an organic to its hydroperoxide, epoxidation of propylene with the hydroperoxide, purification of the propylene oxide, and conversion of the coproduct alcohol to a useful product for sale. Incorporated into the process are various purification, concentration, and recycle methods to maximize product yields and minimize operating expenses. Commercially, two processes are used. The coproducts are / fZ-butanol, which is converted to methyl tert-huty ether [1634-04-4] (MTBE), and 1-phenyl ethanol, converted to styrene [100-42-5]. The coproducts are produced in a weight ratio of 3—4 1 / fZ-butanol/propylene oxide and 2.4 1 styrene/propylene oxide, respectively. These processes use isobutane (see Hydrocarbons) and ethylbenzene (qv), respectively, to produce the hydroperoxide. Other processes have been proposed based on cyclohexane where aniline is the final coproduct, or on cumene (qv) where a-methyl styrene is the final coproduct. 

There are four key advantages to handling separated materials (/) separated materials systems are far less labor-intensive than other collection schemes (as mentioned eadier, labor costs are the largest component of most recovery facihties operating expenses) (2) the equipment needed to handle separated material is relatively simple and inexpensive (J) source separation is often the only method of resource recovery suitable for small communities ... 

The costs of building and maintaining a bromine plant are high because of the corrosiveness of brine solutions which contain chlorine and bromine and require special materials of constmction. The principal operating expenses are for pumping, steam, environmental costs, energy, and chlorine. The plants are very capital intensive. 

At processing complexes, central utiUties and other faciUties are shared by several battery-limits process plants. The capital cost of a central utiUty is sometimes charged to the capital cost of each battery-limits plant as an allocated capital cost based on the unit capital cost of the utiUty faciUty and the units of capacity of the utiUty required by the plant. In this case, the use charge per unit consumed only covers operating expenses. The alternative is to recover utihty capital costs, as well as operating expense, in the unit usage charge. 

All costs incurred during the startup period but excluding normal operating expenses... 

After an allowanee for insuranee and property tax, total operating expense is obtained for eaeh alternative. Under the assumed eonditions the steam turbine is very expensive to operate whereas the power reeovery alternatives are nearly free. 

Operating Expense — Utility Steam Turbine Driven Air Blower Motor Driven Air Blower One Stage Expander Driven Air Blower Two Stage Expander Driven Air Blower... 

Once the economic analysis has been completed, the project should be analyzed for unexpected as well as expected impacts on the economics. This is usually done through a set of what if calculations that test the project s sensitivity to missed estimates and changing economic environment. As a minimum, the DCF rate of return should be calculated for 10% variations in capital, operating expenses, and sales volume and priee. 

The cost of equipment determines the capital investment for a process operation. However, there is no direct relationship to profits. That is, more expensive equipment may mean better quality, more durability and, hence, longer service and maintenance factors. These characteristics can produce higher operating efficiencies, fewer consumption coefficients and operational expenses and, thus, fewer net production costs. The net cost of production characterizes the perfection rate of the total technological process and reflects the influences of design indices. Therefore, it is possible to compare different pieces of equipment when they are used in the manufacture of these same products. 

Savings in operating expenses due to heat recovery in die reaction-regeneration steps. 

Even today, msting of industrial plant and material is accepted by some as an inevitable operating expense. There is no necessity for this attitude, however, as the petroleum industry has evolved effective, easily applied temporary protectives against corrosion, which are well suited to the conditions met in practice. 

There is a formula for business failures based on Dun Bradstreet, Inc. annually published data. The vast majority of the firms involved are small. Why do failures occur D B has offered the following tabular explanation (apparent cause/percent) inadequate sales/49.9, competitive weakness/25.3, heavy operating expenses/13.0, receivables difficul-ties/8.3, inventory difficulties/7.7, excessive fixed assets/3.2, poor location/2.7, neglect/0.8, disaster/0.8, fraud/0.5, and others/1.1. Numbers do not add up to 100% because some failures are attributed to a combination of apparent causes. One can include that product design directly influences competitive weakness and heavy operating expenses. 

The costs listed above are the direct costs of producing the product at the plant site. In addition to these costs the site will have to carry its share of the Company s general operating expenses. These will include ... 

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