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256 Lawrence K. Wang et al.

Note: The Venturi scrubber will generate wastewater during normal operation. The
cost of treating this water is not included in this discussion.
6. The total annual direct cost is determine from the summation of direct annual costs:
Total annual direct cost = $331,000 + $79,200 + $19,400 + $2,910 + $10,700 +
$10,700
Total annual direct cost = $453,910 or $454,000/yr

C. Indirect Annual Costs—Venturi Scrubber
The TCC from Table 18 is $459,000 for equipment only (without site preparation and
building). Although the actual TCC = $459,000 + SP + building, it is assumed that the
annual costs of SP and building will be estimated separately together with all other
sites and buildings. Accordingly, the annual costs of the subject Venturi scrubber are
estimated assuming TCC = $459,000 for equipment only. Table 17 lists indirect cost
factors. These factors and the value for TCC are utilized to determine indirect annual
costs (IAC) as follows:
Overhead = 0.60(annual operating labor and maintenance costs)
Overhead = 0.60($19,400 + $2,910 + $10,700 + $10,700)
Overhead = $ 26,226–$26,200/yr
Property Tax = 0.01(TCC) = 0.01($459,000)
Property Tax = $4,590/yr

Insurance = 0.01 (TCC) = 0.01($459,000)
Insurance = $4,590/yr
Administration = 0.02(TCC) = 0.02($459,000)
Administration = $9180/yr
Capital Recovery = 0.1628(TCC) = 0.1628($459,000)
Capital Recovery = $74,725/yr

The total indirect annual cost is the summation of the cost list above.
Total indirect annual costs = $26,200 + $4,590 + $4,590 + $9,180 + $74,725
Total indirect annual costs = $119,285/yr
D. Total Annual Cost is determined by summation of Annual Direct and Annual Indirect
costs
Total annual costs = Total direct annual cost + Total indirect annual costs
Total annual costs = Total DAC + Total IAC
Total annual costs = $454,000 + $119,285
Total annual costs = $573,285/yr
E. Cost Update—see Example 15, which describes the cost indices found in refs. 28, 31,
and 32.
Example 17

In this example, the definition and classification of air pollutants is discussed. Several
terms commonly encountered when discussing air pollutants need to be defined:
•Volatile organic compounds (VOCs)
• Semivolatile organic compounds (SVOCs)
•Volatile inorganic compounds (VICs)