 |  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 Overview| A
n acceptable plant design must represent a plant that can produce a product
which will sell at a profit. Initially, sufficient capital must be committed to
construct all aspects of the facility necessary for the plant. Since net profit
equals total income minus all expenses, it is essential that the chemical engineer be
aware of the various types of costs associated with each manufacturing step. Funds
must be available for direct plant expenses, such as those for raw materials, labor, and
utilities, and for indirect expenses, such as administrative salaries, product sales, and
distribution costs. In this chapter, investment and plant operation costs are reviewed as
well as cash flow and gross and net profits. |
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2003 McGraw-Hill Higher Education