Salvage

Ultimately, the process might be permanently shut down or given a major revamp. This marks the end of the project, H. If the process is shut down, working capital is recovered, and there may be salvage value, which would create a final cash inflow at the end of the project. 

At first glance it seems problematic whether anything is salvageable from the random walk model with so many areas of difference. 

With the results of the preceding section thus salvaged, let us look in more detail at the specific areas of discrepancy between the perfectly flexible model... 

Other acetyl chloride preparations include the reaction of acetic acid and chlorinated ethylenes in the presence of ferric chloride [7705-08-0] (29) a combination of ben2yl chloride [100-44-7] and acetic acid at 85% yield (30) conversion of ethyUdene dichloride, in 91% yield (31) and decomposition of ethyl acetate [141-78-6] by the action of phosgene [75-44-5] producing also ethyl chloride [75-00-3] (32). The expense of raw material and capital cost of plant probably make this last route prohibitive. Chlorination of acetic acid to monochloroacetic acid [79-11-8] also generates acetyl chloride as a by-product (33). Because acetyl chloride is cosdy to recover, it is usually recycled to be converted into monochloroacetic acid. A salvage method in which the mixture of HCl and acetyl chloride is scmbbed with H2SO4 to form acetyl sulfate has been patented (33). 

Life cycle cost analysis is the proper tool for evaluation of alternative systems (11,12). The total cost of a system, including energy cost, maintenance cost, interest, cash flow, equipment replacement and/or salvage value, taxes, inflation, and energy cost escalation, can be estimated over the useflE life of each alternative system. A Hst of life cycle cost items which may be considered for each system is presented in Tables 3 and 4. Reference 14 presents a cash flow analysis which also includes factors such as energy cost escalation. 

W. H. Dzik, "Characteristics and Controversies of Blood Collected by Intra Operative Salvage."... 

The eady juice industry was largely a salvage operation. The principal source of raw material was misshapen, poorly colored, or skin blemished fmit unsuitable for the fresh, canned, or frozen fmit market. In the 1990s, raw materials are selected for suitabiUty for juice production, except for apple juice production which still uses much cull fmit (4). 

Quahty control iaspection is a post-, or at best concurrent, manufacture activity. The QC laboratory reports on ia-process and finished product quahty based on testing. Thus QC confirms whether a material has been manufactured in conformance. Sometimes QC also assists the production unit in salvaging process material or reworking off-standard finished product. 

Approximately 0.05 to 0.2% of vitamin > 2 stores are turned over daily, amounting to 0.5—8.0 )J.g, depending on the body pool size. The half-life of the body pool is estimated to be between 480 and 1360 days with a daily loss of vitamin > 2 of about 1 )J.g. Consequentiy, the daily minimum requirement for vitamin B22 is 1 fig. Three micrograms (3.0 J.g) vitamin B22 are excreted in the bile each day, but an efficient enterohepatic circulation salvages the vitamin from the bile and other intestinal secretions. This effective recycling of the vitamin contributes to the long half-life. Absence of the intrinsic factor intermpts the enterohepatic circulation. Vitamin > 2 is not catabolized by the body and is, therefore, excreted unchanged. About one-half of the vitamin is excreted in the urine and the other half in the bile. 

The nondepreciable investments, ie, land and working capital, are often assumed to be constant preoperational costs that are fully recoverable at cost when the project terminates. Equipment salvage is another end-of-life item that can represent a significant fraction of the original fixed capital investment. However, salvage occurs at the end of life, can be difficult to forecast, and is partially offset by dismantling costs. Eor these reasons, a zero salvage assumption is a reasonable approximation ia preliminary analysis. 

Fnd-of-Tife Items. The end-of-life items are working capital return, sale of land, and salvage. If there is a capital gain on land sale or salvage, above the remaining tax-basis asset value, then this gain is treated as taxable ordinary income ia the United States historically, capital gains were taxed separately at a... 

For this example, the tax-basis depreciation method in line-item 11 is a straight-line calculation based on the capitalized fixed capital, ie, fixed capital plus interest to the start of operation any salvage should be subtracted from the capitalized fixed capital and the result divided by the number of expected operating years to obtain the aimual tax-basis depreciation. 

Inflationary Effects. Inflation can have a significant effect on the profitabiUty of a venture. However, the U.S. federal tax laws do not allow for indexing the inflationary effects on depreciation schedules, salvage values, replacement costs, or taxable income. Inflation rates can vary unpredictably with time and can differ for certain revenues of expenditures. 

In the fourth case, a plant or a piece of equipment has a limited use-Ril life. The primary reason for the decrease in value is the decrease in future life and the consequent decrease in the number of years for which income will be earned. At the end of its life, the equipment may be worth nothing, or it may have a salvage or scrap value S. Thus a fixed-capital cost Cpc depreciates in value during its useful life of s years by an amount that is equal to (Cpc S). The useful life is taken from the startup of the plant. 

A fourth method of computing depreciation (now seldom used) is the sinking-fund method. In this method, the annual depreciation A is the same for each year of the life of the equipment or plant. The series of equal amounts of depreciation Aq, invested at a fractional interest rate i and made at the end of each year over the life of the equipment or plant of s years, is used to build up a future sum of money equal to (Cpc S). This last is the fixed-capital cost of the equipment or plant minus its salvage or scrap value and is the total amount of depreciation during its useful life. The equation relating i Fc S) and Ao is simply the annual cost or payment equation, written either as... 

Estimated salvage value of plant items S = 20,000 Working capital C yc = 10,000 Cost of land Cj, = 20,000... 

Ck is in excess of Cpc by an amount which, when compounded at an annual interest rate i for n years, will have a future worth of less the salvage or scrap value S. 11 the renewal cost of the equipment remains constant at (Cp S) and the interest rate remains constant at i, then Ck is the amount of capital required to replace the equipment in perpetuity. 

Example 2 Net Present Value for Different Depreciation Methods The following data descrihe a project. Revenue from annual sales and the total annual expense over a 10-year period are given in the first three columns of Table 9-5. The fixed-capital investment Cpc is 1,000,000. Plant items have a zero salvage value. Working capital C vc is 90,000, and cost of land C/ is 10,000. There are no tax allowances other than depreciation i.e., is zero. The fractional tax rate t is 0.50. 

The annual rate of straight-line depreciation of the fixed-capital investment Cfc, from 1,000,000 at startup to a salvage value S, of zero at the end of a productive life s of 10 years, is given hy... 

Manual Component Separation The manual separation of solid-waste components can be accomplished at the source where solid wastes are generated, at a transfer station, at a centralized processing station, or at the disposal site. Manual sorting at the source of generation is the most positive way to achieve the recoveiy and reuse of materials. The number and types of components salvaged or sorted (e.g., cardboard and high-quality paper, metals, and wood) depend on the location, the opportunities for recycling, and the resale market. There has been an evolution in the solid waste indus-tiy to combine manual and automatic separation techniques to reduce overall costs and produce a cleaner product, especially for recyclable materials. 

Land area Area should he large enough to hold all wastes for a minimum of 5 years hut from the unloading area no salvage storage on site. 

Weld overlays of stainless steel or cobalt-based wear-resistant and hard-facing alloys such as Stellite may salvage damaged equipment. In addition, weld overlays incorporated into susceptible zones of new equipment may provide cost-effective resistance to cavitation damage. 

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