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70 Chapter 2
Table 2.16 Calculation Procedure for Depreciable Capital Cost—
Individual Factor Method___________________________
1. Obtain purchased equipment costs for carbon steel at the tabulated size
and also the capacity exponent from Table 2.9.
2. Calculate the equipment cost at the required size from Equation 2.15.1
in Table 2.15.
3. Obtain cost indexes from Table 2.12.
4. Calculate the equipment base cost, C PB2i, at the present time from
Equation 2.15.2.
5. Calculate the equipment cost, C PAi, at the design pressure and tempera-
ture, material of construction, and the required equipment design from
Equation 2.15.3.
6. Obtain the direct-cost factors for each piece-of-equipment from Table
2.8.
7. Calculate the equipment installation factor, f, from Equation 2.15.4.
M
8. Repeat steps 1 to 7 for all major equipment.
9. Calculate the installed equipment cost at actual process conditions, C Ai,
from Equation 2.15.5.
10. Calculate the installed equipment cost at the base conditions, C Bi,
from Equation 2.15.6.
11. Obtain f AB, the combined factors for buildings and auxiliaries, from
Equation 2.15.8.
12. Calculate the depreciable capital cost from Equation 2.15.7.
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