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Production and Capital Cost Estimation                         67

            Table 2.13 Summary of Equations for Depriciable Capital Cost -  Average
            Factor Method (Based on the FOB Cost) ___________________

            The subscript i refers to the FOB cost of a major piece-of-equipment.
            The subscript k refers to a component of the installation cost listed in Table 2.6.



                                                                   (2.13.1)




                                                                   (2.13.2)
                       In

            CPA i = fr i fp ; ffn ; fb i C PB ;  —  for some equipment and  (2.13.3)
            CPA i = f-r i (fp i +  fo 0  fM i CPB ; —  for heat exchangers

            C SAi =  1.10  C PAi  —  for actual conditions or       (2.13.4)
            C SB ; =  1 . 1 0 CPB i for base conditions

            fi = I  k fik + foe  — fikfrom  Table 2.6               (2.13.5)

            foe  =  f(process type, material ....) —  from Table 2.7  (2. 13.6)

            CsAi=fi(IiC SAi )                                       (2.13.7)

            CsBi = fi(SiC S Bi)                                    (2.13.8)

            fAB = auxiliary-facilities  factor  + buildings factor, from  Table 2.6  (2.13.9)

            C D = C SAI + f ABC SB,                               (2.13.10)



            To calculate the depreciable capital cost we need to calculate the cost of  buildings
            and  auxiliary  facilities.  Table  2.6  contains  factors  for calculating  these  costs.  Ul-
            rich [31] pointed out that these costs are not affected  by process-equipment operat-
            ing  temperature  and  pressure,  materials  of  construction,  or  equipment  design.
            Thus,  we  calculate  the base  installed  cost,  which  is  the  installed  cost  of  carbon-
            steel equipment at ordinary operating conditions and equipment design. To  obtain
            the  cost  of  auxiliary  facilities  and  buildings,  multiply  CSBI  by  fAB-  Now, we  can
            now  complete  the  calculation  of the  depreciable  capital  cost  as outlined  in  Table
            2.14.




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