Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987 a plant in Alabama, that manufactured 10,000 units per hour, cost $12,000,000 to construct. This type of construction is estimated to have a cost capacity exponent of 0.65. The cost index for Idaho in 2018 is 718, and it was 128 in 1987. The value of the Alabama cost index in 2018 is 770, but we do not know its value for 1987. We expect costs to increase 8% between 2018 and 2020. What is the best estimated cost for electrical installation in a plant built in 2020 in Idaho to produce 15,000 units per hour.
Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987 a plant in Alabama, that manufactured 10,000 units per hour, cost $12,000,000 to construct. This type of construction is estimated to have a cost capacity exponent of 0.65. The cost index for Idaho in 2018 is 718, and it was 128 in 1987. The value of the Alabama cost index in 2018 is 770, but we do not know its value for 1987. We expect costs to increase 8% between 2018 and 2020. What is the best estimated cost for electrical installation in a plant built in 2020 in Idaho to produce 15,000 units per hour.
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
Related questions
Question
Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987 a plant in Alabama, that manufactured 10,000 units per hour, cost $12,000,000 to construct. This type of construction is estimated to have a cost capacity exponent of 0.65. The cost index for Idaho in 2018 is 718, and it was 128 in 1987. The value of the Alabama cost index in 2018 is 770, but we do not know its value for 1987. We expect costs to increase 8% between 2018 and 2020. What is the best estimated cost for electrical installation in a plant built in 2020 in Idaho to produce 15,000 units per hour.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, chemical-engineering and related others by exploring similar questions and additional content below.Recommended textbooks for you
Introduction to Chemical Engineering Thermodynami…
Chemical Engineering
ISBN:
9781259696527
Author:
J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:
McGraw-Hill Education
Elementary Principles of Chemical Processes, Bind…
Chemical Engineering
ISBN:
9781118431221
Author:
Richard M. Felder, Ronald W. Rousseau, Lisa G. Bullard
Publisher:
WILEY
Elements of Chemical Reaction Engineering (5th Ed…
Chemical Engineering
ISBN:
9780133887518
Author:
H. Scott Fogler
Publisher:
Prentice Hall
Introduction to Chemical Engineering Thermodynami…
Chemical Engineering
ISBN:
9781259696527
Author:
J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:
McGraw-Hill Education
Elementary Principles of Chemical Processes, Bind…
Chemical Engineering
ISBN:
9781118431221
Author:
Richard M. Felder, Ronald W. Rousseau, Lisa G. Bullard
Publisher:
WILEY
Elements of Chemical Reaction Engineering (5th Ed…
Chemical Engineering
ISBN:
9780133887518
Author:
H. Scott Fogler
Publisher:
Prentice Hall
Industrial Plastics: Theory and Applications
Chemical Engineering
ISBN:
9781285061238
Author:
Lokensgard, Erik
Publisher:
Delmar Cengage Learning
Unit Operations of Chemical Engineering
Chemical Engineering
ISBN:
9780072848236
Author:
Warren McCabe, Julian C. Smith, Peter Harriott
Publisher:
McGraw-Hill Companies, The