Other investment costs site preparation

The total direct cost (TDC) includes both the direct installation costs and the costs of site preparation and buildings. Further, the sum of the total direct cost and total indirect cost (or direct installation costs) is termed the battery limits cost. Finally, the battery limits cost plus the cost of off-site facilities (e.g., a railroad spur) comprise the total depreciable investment. Put simply, this is the portion of the TCI for which the firm is permitted to take a depreciation deduction on its corporate income tax return. The other portion of the TCI, namely, land and working capital, may not be depreciated. Hence, this portion is called the total nondepreciable investment. 

The cost of any required external ductwork and other nonstandard auxiliary equipment must be added to C, and the total multiplied by 1.08 to cover sales taxes and freight. The product is the total purchased equipment cost, PEC. The PEC must be multiplied by 1.61 to cover direct and indirect installation costs. The resulting installed equipment cost plus the cost of site preparation and buildings, as required, represents the total capital investment for the fixed-bed adsorption system. 

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