Other investment costs site factors

Table 16.15 continues the cost estimate to obtain the total capital investment. After all other investment costs are added to the total bare-module cost of the on-site equipment, the total capital investment becomes 179,730,000. The total permanent investment is 169,640,000, which is a factor of 5.38 times the total f.o.b purchase cost of the on-site process equipment. The start-up cost here is taken as 8% of Ctdc-... 

In many companies, investment site factors, F,sp, are used to multiply the total permanent investment, Cppi, to account for different costs in different localities, based on the availability of labor, the efficiency of the workforce, local rules and customs, union status, and other items. Typical factors in recent use by one of the major chemical companies are provided in Table 16.13, where a plant in the U.S. Gulf Coast area is given a base factor of 1.0. The factors range from 0.85 in India to 1.25 in the U.S. West Coast area. The corrected total permanent investment is computed as ... 

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