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Section 2 Dr.Hoda’s part Sheet of: Total Capital Investment Eng. Reda Zein Total capital investment (TCI) TCI is the money utilized in a project to make a profit. TCI =Fixed capital investment (FCI) + Working capital investment (WCI). FCI is the sum of money paid to build up a plant and make ready for start up. WCI is the additional sum of money required to start and operate the plant to the point when income is earned (1-3 months). Working Capital Investment (WCI) - Coulson method: WCI=5-30% FCI Typically 15%FCI - Beters method: WCI=15-20%TCI Typically 15%TCI Fixed Capital Investment (WCI) - Coulson method: Works with factors FCI=Physical plant cost (PPC) + In direct plant cost (IPC) IPC=Design and Engineering + Contractor’s fee +Contingency Fixed Capital Investment (WCI) - Beters method: Works with percentages FCI=Direct plant cost (DPC) + (IPC) + Contractor’s fee +Contingency. IPC=Design and Engineering only Coulson: Items of PPC Fluid Solid-Fluid A Solid Equipment Say= A A Installation 0.4A 0.5A Piping 0.7A 0.2A Instrumentation 0.2A 0.1A Electrical 0.1A 0.1A Buildings 0.15A 0.05A Storages 0.15A 0.2A Utilities 0.5A 0.25A Site development 0.1A 0.1A Auxiliary Buildings 0.15A 0.15A PPC 3.45A 2.65A Design and Engineering 0.3 PPC 0.2 PPC Contractor’s fee 0.05 PPC 0.05 PPC Contingency 0.1 PPC 0.1 PPC IPC 0.45 PPC 0.35 PPC Beters: Items of PPC Fluid Solid-Fluid Equipment Say= A Installation 45%A 47%A Piping 66%A 16%A Instrumentation 18%A 9%A Electrical 10%A 10%A Buildings 18%A 25%A Site development 10%A 10%A Land 6%A 6%A Utility 70%A 40%A DPC 343%A 263%A Design and Engineering (IPC) A Solid A 33% DPC Contractor’s fee 5-7% (DPC+IPC) Contingency 10% (DPC+IPC) Note: Buildings here means all buildings in factory so it includes auxiliary buildings, storages and building of equipment Let’s begin our sheet 1) Prepare a study estimate of the fixed capital investment for a process plant handling fluids with a high degree of automatic controls knowing that purchased equipment cost is $ 100,000 (Ans.=$ 500,250) the 3) The total capital investment for a chemical plant is $ 1 million and the working is $100,000. If the plant can produce an a average of 8000 kg of final product per day during a 365-day year, what selling price in dollars per kg of product would be necessary to give a turn over ratio of 1? = () (Ans. =$ 0.3082/kg) 4) The purchased equipment cost for a plant which produces pentaerythritol (solid-fluid processing plant) is $ 300,000. The plant is to be an addition to an existing plant. The contractor’s fee will be 7% of the direct plant cost. All other values 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. (Ans.:a)$657,000, b)$ 1,007,181 c) $1,184,919) Any questions?