 |  Plant Design and Economics for Chemical Engineers, 5/e Max S. Peters,
University of Colorado
Klaus Timmerhaus,
University of Colorado, Boulder
Ronald E. West,
University of Colorado, Boulder
Analysis of Cost Estimation
Chapter Outline
C H A P T E R 6
ANALYSIS OF COST ESTIMATION
Cash Flow for Industrial Operations
Cash Flow
Cumulative Cash Position
Factors Affecting Investment and Production Costs
Sources of Equipment
Price Fluctuations
Company Policies
Operating Time and Rate of Production
Government Policies
Capital Investment
Fixed-Capital Investment
Working Capital
Estimation of Capital Investment
Types of Capital Cost Estimates
Cost Indexes
Cost Components in Capital Investment
Purchased Equipment
Estimating Equipment Costs by Scaling
Purchased-Equipment Delivery
Purchased-Equipment Installation
Instrumentation and Controls
Piping
Electrical Systems
Buildings
Yard Improvements
Service Facilities
Health, Safety, and Environmental Functions
Land
Engineering and Supervision
Legal Expenses
Construction Expenses
Contractor’s Fee
Contingencies
Methods for Estimating Capital Investment
Estimation of Revenue
Estimation of Total Product Cost
Manufacturing Costs
Variable Production Costs
Plant Overhead Costs
General Expenses
Gross Profit, Net Profit, and Cash Flow
Contingencies
Summary
Nomenclature
Greek Symbol
Problems
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2003 McGraw-Hill Higher Education