 |  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
Profitability, Alternative Investments, and Replacements
Chapter Outline
C H A P T E R 8
PROFITABILITY, ALTERNATIVE INVESTMENTS, AND REPLACEMENTS
Profitability Standards
Cost of Capital
Minimum Acceptable Rate of Return
Methods for Calculating Profitability
Methods That Do Not Consider the Time Value of Money
Methods That Consider the Time Value of Money
Selecting a Profitability Method
Effect of Inflation on Profitability Analysis
Start-up Costs
Spreadsheet for Economic Evaluation Calculations
Alternative Investments
Alternatives When an Investment Must Be Made
Analysis with Small Investment Increments
Replacements
Methods of Profitability Evaluation for Replacements
Typical Example of Replacement Policy
Book Values and Unamortized Values
Investment on Which the Replacement Comparison Is Based
Practical Factors in Alternative-Investment and Replacement Analysis
Nomenclature
Greek Symbol
Problems
|
|
2003 McGraw-Hill Higher Education