The purchased-equipment cost for a plant which produces pentaerythritol (solid-fuel- processing plant) is $450,000. The plant is to be an addition to an existing formaldehyde plant. The major part of the building cost will be for indoor construction, and the contractor’s fee will be 9 percent of the direct plant cost. All other costs are close to the average values found for typical chemical plants. On the basis of this information, estimate the following: (a) The total direct plant cost. (b) The fixed-capital investment. (c) The total capital investment

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
icon
Related questions
Question

The purchased-equipment cost for a plant which produces pentaerythritol (solid-fuel-
processing plant) is $450,000. The plant is to be an addition to an existing formaldehyde plant.

The major part of the building cost will be for indoor construction, and the contractor’s fee will
be 9 percent of the direct plant cost.
All other costs are close to the average values found for typical chemical plants. On the basis of
this information, estimate the following:
(a) The total direct plant cost.
(b) The fixed-capital investment.
(c) The total capital investment.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cost estimation of chemical processes and equipments
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…
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…
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…
Elements of Chemical Reaction Engineering (5th Ed…
Chemical Engineering
ISBN:
9780133887518
Author:
H. Scott Fogler
Publisher:
Prentice Hall
Process Dynamics and Control, 4e
Process Dynamics and Control, 4e
Chemical Engineering
ISBN:
9781119285915
Author:
Seborg
Publisher:
WILEY
Industrial Plastics: Theory and Applications
Industrial Plastics: Theory and Applications
Chemical Engineering
ISBN:
9781285061238
Author:
Lokensgard, Erik
Publisher:
Delmar Cengage Learning
Unit Operations of Chemical Engineering
Unit Operations of Chemical Engineering
Chemical Engineering
ISBN:
9780072848236
Author:
Warren McCabe, Julian C. Smith, Peter Harriott
Publisher:
McGraw-Hill Companies, The