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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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