WELCOME To Cost & Evaluation Workbook by Peters, Timmerhaus and West. Accompanying Plant Design and Economics For Chemical Engineers, 5th Edition
WELCOME To Cost & Evaluation Workbook by Peters, Timmerhaus and West. Accompanying Plant Design and Economics For Chemical Engineers, 5th Edition
WELCOME To Cost & Evaluation Workbook by Peters, Timmerhaus and West. Accompanying Plant Design and Economics For Chemical Engineers, 5th Edition
accompanying Plant Design and Economics for Chemical Engineers, 5th edition,
by Peters, Timmerhaus and West.
These spreadsheets are made available for convenient implementation of methods
presented in the text. The sheets are color coded to assist the user. A hypothetical
example, 'Illustration 101', is included. The basis for all costs is Jan. 2002.
Steps to follow:
1. Please download the workbook to your computer.
2. The sheets are intended for use in the sequence presented. However, any sheet
may be by-passed so long as the information skipped is input manually where needed
in subsequent sheets. Default values may be replaced by the user.
3. Purchased Equipment Costs may be obtained from the file "Equipment Costs,"
the graphs in the text, or otherwise, and entered manually into cell H12 on the
Capital Inv.' spreadsheet.
4. On the sheet 'Capital Inv.' enter the estimated current total purchased cost of the
process equipment. For the proposed plant type, copy the corresponding "Fraction of
delivered equipment" column entries into the tan "User" column. The sheet then
calculates and transfers results to appropriate subsequent sheets.
5. On the sheet 'Materials & Labor' enter the product prices and flowrates, the raw
materials prices and flow rates, and the labor requirements and current ENR labor index.
6. On the sheet 'Utilities' the quantity of each utility needed annually must be entered
in appropriate units. The total annual utilities cost is transferred to sheet 'Annual TPC'.
7. The 'Depreciation' sheet is used only if the user wishes to change the default
(5-year MACRS) depreciation method. To make a change, copy the appropriate MACRS
row to the 'Annual depreciation" row of sheets 'Evaluation' and 'Year-0 $', or, enter
constant annual (straight line) value into depreciation row of those sheets.
8. On the 'Annual TPC' sheet, all values are calculated from information available on
other sheets. The user may change defaults or enter preferred values. The calculated
annual TPC is transferred to 'Evaluation'.
9. The sheet 'Evaluation' uses values from other sheets to calculate the common
profitability measures. The user may change defaults, or enter desired values
into the sheet. In particular, the user may change the default inflation rates in
order to study their effects on profitability.
All calculations in 'Evaluation' are made in current (i.e. inflated) dollars. Inflation
adjustments are made from the time of the estimates.
To make evaluations for periods of less than 10 years, leave unneeded columns blank.
For periods greater than 10 years, insert columns as needed and copy from an existing
year column into the new columns. Check equations for correct cell references.
10. A second evaluation sheet, 'Year-0 $', also is included. It is the same as
sheet 'Evaluation', except that all the inflated $ values are converted to constant,
year-0 dollars (as discussed in the text). This method is considered to reflect more
realistically the effect of inflation on the profitability measures. The user may change
the default inflation rates in order to study their impacts on profitability.
Indirect Costs
0.33
0.39
0.04
0.17
0.35
1.28
0.32
0.34
0.04
0.19
0.37
1.26
0.33
0.41
0.04
0.22
0.44
1.44
0.33
0.41
0.04
0.22
0.44
1.44
0.70
0.75
3.194
3.969
0.387
2.130
4.259
13.939
48.787
0.89
0.89
8.615
Price,
$/kg
Annual
Amount,
million
kg/y
Annual
value of
product,
million $/y
Main
Byproduct
1.60
0.25
30.000
12.000
48.00
3.00
0.00
0.00
0.00
0.00
51.00
Number of
operators per
shift*
Price,
$/kg
1
2
3
0.45
0.25
0.05
Sent to 'Evaluation'
and 'Year-0 $'
9.00
3.00
0.65
0.00
0.00
0.00
12.65
3
0.885
3
33.67
*See Tables 6-13 and Fig. 6-9.
**Default = 3 for continuous process.
Enter appropriate value for batch operation.
#
To obtain current, local value, enter (latest local
1
ENR skilled labor index)/6067 =
Raw Materials
Name of
Material
Sent to sheet
'Annual TPC'
UTILITY COSTS
See Table 6-14 and Table B-1 for ranges of utility unit costs and sources of information. Default
values are rough averages and may be changed. Utility costs can differ widely with location.
Process Identifier: Illustration 101
Utility
Result
2.025
million $/y
Sent to sheet 'Annual TPC'
Default
unit cost
Default
cost units
Annual utility
Default units Annual utility
requirement, in
of utility
cost, million
appropriate units requirement
$/y
Air, compressed
Process air
Instrument air
0.45
0.90
$/100m3 #
$/100m3 #
100 m3#/y
100 m3#/y
0.000
0.000
kWh/y
kWh/y
0.081
0.000
GJ/y
GJ/y
GJ/y
GJ/y
0.000
0.000
1.080
0.000
GJ/y
GJ/y
GJ/y
GJ/y
0.000
0.000
0.000
0.000
1000 kg/y
1000 kg/y
1000 kg/y
0.000
0.240
0.000
m3/y
m3/y
0.212
1000 kg/y
1000 kg/y
0.000
0.000
Electricity
Purchased, U.S. average
Self-generated
0.045 $/kWh
0.05 $/kWh
1800000
Fuel
Coal
Fuel oil
Natural gas
Manufactured gas
1.66
3.30
3.00
12.00
$/GJ
$/GJ
$/GJ
$/GJ
4.00
5.00
8.00
14.00
$/GJ
$/GJ
$/GJ
$/GJ
8.00
6.00
2.00
$/1000 kg
$/1000 kg
$/1000 kg
0.53
0.53
$/m3
$/m3
360000
Refrigeration, to temperature
15 oC
5 C
-20 oC
-50 oC
Steam, saturated
3550 kPa
790 kPa
Exhaust (150 kPa)
40000
Waste water
Disposal
Treatment
400000
Waste disposal
Hazardous
Non-hazardous
145.00 $/1000 kg
36.00 $/1000 kg
Water
Cooling
Process
General
Distilled
#
0.08
$/ m3
2500000
m3/y
0.200
0.53
0.90
$/m3
$/m3
400000
m3/y
m3/y
0.212
0.000
DEPRECIATION
Default = 5-y MACRS. Default is in place in sheets 'Evaluation' and 'Year-0 $'.
To use a different recovery period, copy the entire row into the depreciation row of
sheets 'Evaluation' and 'Year-0 $' (add columns to these sheets as needed).
User may elect straight-line depreciation and period (d = FCI/period), and
substitute the value into the depreciation row on sheets 'Evaluation' and
'Year-0 $'.
Entry = MACRS depreciation as fraction/y of FCI
YEAR
Recovery
period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
3-year
0.333 0.444 0.148 0.074
f
0.200 0.320 0.192 0.115 0.115 0.058
7-year
0.143 0.245 0.175 0.125 0.089 0.089 0.089 0.045
10-year
0.100 0.180 0.144 0.115 0.092 0.074 0.066 0.066 0.066 0.066 0.033
15-year
0.050 0.095 0.086 0.077 0.069 0.062 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059
20-year
0.038 0.072 0.067 0.062 0.057 0.053 0.049 0.045 0.045 0.045 0.045 0.045 0.045 0.045
15
16
0.059
0.030
0.045
0.045
17
18
19
20
21
0.045
0.045
0.045
0.045
0.022
30
50.114
Default
factor, user
may change
Basis
0.15
of operating labor
0.885
0.06
0.15
0.15
of FCI
50.114
of maintenance & 3.007
of operating labor 0.885
of co
26.674
--
= co =
12.650
0.885
0.133
2.025
3.007
0.451
0.133
0.267
0.000
19.550
1.002
0.000
0.501
0.000
1.503
2.415
2.415
23.468
0.805
1.334
1.067
3.206
26.674
Sent to 'Evaluation'
and 'Year-0 $'
'Year-0 $'
ECONOMIC EVALUATION
Project identifier: Illustration 101
Expenditures, entries must be negative
Default values, can be changed
0.15
0.14
RESULT
10
0.00
Row
Sum
0.00
-5.01
0.50
25.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-50.11
8.85 0.00
0.00 0.00
-58.96
0.00 0.00
0.90
45.90
1.00
51.00
1.00
51.00
1.00
51.00
1.00
51.00
1.00
51.00
1.00
51.00
1.00
51.00
1.00
51.00 479.40
-17.93
-26.76
-29.45
-30.04
-30.64
-31.25
-31.88
-32.51
-33.17
-33.83 -297.45
0.20
10.02
-7.47
-7.47
2.56
2.56
-56.41
0.320
16.04
3.11
2.02
18.06
18.06
-38.35
0.192
9.62
11.93
7.75
17.38
17.38
-20.98
0.115
5.77
15.19
9.87
15.65
15.65
-5.33
0.115
5.77
14.59
9.48
15.25
15.25
9.92
0.058
2.89
16.86
10.96
13.85
13.85
23.77
19.12
12.43
12.43
12.43
36.20
18.49
12.02
12.02
12.02
48.22
17.83
11.59
11.59
11.59
59.81
17.17
11.16
11.16
11.16
70.97
50.11
126.82
79.82
129.93
70.97
Profitability measures including time value of money, with ANNUAL END-OF-YEAR cash flows and discounting
21. Present worth factor
22. Present worth of annual cash
flows, 106$
23. Net present worth, 106$ =
24. Discounted cash flow rate of
return, DCFR, %/y =
Iterated discount rate=
0.152
25. Present worth factor
26. Present worth of annual cash
flows, 106$
1.52
1.32
1.15
1.00
0.87
0.76
0.66
0.57
0.50
0.43
0.38
0.33
0.28
0.25
0.00
-9.68
-20.03
-34.23
2.22
13.65
11.42
8.95
7.58
5.99
4.67
3.93
3.30
2.76
0.53
15.0 %/y
To get DCFR, go to "Tools" and function "Solver." Set target cell as $R$41, to be made = 0 by
15.2 changing cell $C$39. Solver must be rerun after a change on any sheet.
1.53
1.33
1.15
1.00
0.87
0.75
0.65
0.57
0.49
0.43
0.37
0.32
0.28
0.24
0.00
-9.71
-20.06
-34.23
2.22
13.61
11.37
8.89
7.52
5.93
4.62
3.88
3.25
2.71
0.00
Profitability measures including time value of money, with CONTINUOUS cash flows and discounting
27. Present worth factor
28. Present worth of annual cash
flows, 106$
29. Net present worth, 106$ =
30. Discounted cash flow rate of
return, DCFR, %/y =
Iterated discount rate=
0.141
31. Present worth factor
32. Present worth of annual cash
flows, 106$
1.63
0.00
1.42
-10.39
1.23
-21.50
1.07
-36.74
0.93
2.39
0.81
14.65
0.71
12.26
0.61
9.60
0.53
8.14
0.46
6.42
0.40
5.02
0.35
4.22
0.31
0.27
3.54
2.96
0.57
14.0 %/y
To get DCFR, go to "Tools" and function "Solver." Set target cell as $R$51, to be made = 0 by
14.1 changing cell $C$49. Solver must be rerun after a change on any sheet.
1.64
1.43
1.24
1.07
0.93
0.81
0.70
0.61
0.53
0.46
0.40
0.35
0.30
0.26
0.00
-10.43
-21.55
-36.77
2.38
14.62
12.21
9.55
8.08
6.37
4.96
4.17
3.49
2.92
0.00
ECONOMIC EVALUATION
Project identifier: Illustration 101
Expenditures, entries must be negative
Default values, can be changed
0.14
RESULT
-3
-2
0.00
-7.61
-1
0.00
-17.77
0
0.00
-25.38
-8.96
-7.61
-17.77
-34.34
0.00
-7.61 -17.77 -34.34
17. Cumulative cash position, 10 $
0.00
-7.61 -25.38 -59.72
Profitability measures, time value of money NOT included:
18. Return on investment, ave. %/y
11.5
19. Payback period, y
4.3
6
20. Net return, 10 $
-2.08 at mar =
15.0 %/y
6
0.15
0.00
-4.98
0.50
25.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Row
Sum
0.00
-50.76
8.96 0.00
0.00 0.00
-59.72
0.00 0.00
0.90
44.12
1.00
48.06
1.00
47.12
1.00
46.19
1.00
45.29
1.00
44.40
1.00
43.53
1.00
42.67
1.00
41.84 428.21
-17.58
-25.72
-27.75
-27.75
-27.75
-27.75
-27.75
-27.75
-27.75
-27.75 -265.31
0.20
9.95
-7.51
-7.51
2.44
2.44
-57.28
0.320
15.61
2.79
1.81
17.42
17.42
-39.85
0.192
9.18
11.12
7.23
16.41
16.41
-23.44
0.115
5.40
13.96
9.08
14.48
14.48
-8.96
0.115
5.30
13.15
8.54
13.84
13.84
4.88
0.058
2.60
14.94
9.71
12.31
12.31
17.18
16.65
10.82
10.82
10.82
28.01
15.78
10.25
10.25
10.25
38.26
14.92
9.70
9.70
9.70
47.96
10
0.00
14.09
9.16
9.16
9.16
57.12
48.04
109.88
68.80
116.84
57.12
Profitability measures including time value of money, with ANNUAL END-OF-YEAR cash flows and discounting
21. Present worth factor
22. Present worth of annual cash
flows, 106$
23. Net present worth, 106$ =
24. Discounted cash flow rate of
return, DCFR, %/y =
Iterated discount rate=
0.129
25. Present worth factor
26. Present worth of annual cash
flows, 106$
1.52
1.32
1.15
1.00
0.87
0.76
0.66
0.57
0.50
0.43
0.38
0.33
0.28
0.25
0.00
-10.07
-20.43
-34.34
2.12
13.18
10.79
8.28
6.88
5.32
4.07
3.35
2.76
2.26
15.0 %/y
To get DCFR, go to "Tools" and function "Solver." Set target cell as $R$41, to be made = 0 by
12.9 changing cell $C$39. Solver must be rerun after a change on any sheet.
1.44
1.27
1.13
1.00
0.89
0.78
0.69
0.62
0.54
0.48
0.43
0.38
0.34
0.30
0.00
-9.71
-20.06
-34.34
2.16
13.67
11.40
8.91
7.54
5.94
4.63
3.88
3.25
2.72
0.46
0.40
0.35
0.31
0.27
5.71
4.37
3.60
2.96
2.43
Profitability measures including time value of money, with CONTINUOUS cash flows and discounting
1.63
1.42
1.23
1.07
0.93
0.81
0.71
0.61
0.53
27. Present worth factor
28. Present worth of annual cash
0.00 -10.81 -21.93 -36.86 2.28
14.14 11.58
8.88
7.39
flows, 106$
29. Net present worth, 106$ =
-6.26 at discount rate=
14.0 %/y
30. Discounted cash flow rate of
return, DCFR, %/y =
Iterated discount rate=
0.121
31. Present worth factor
32. Present worth of annual cash
flows, 106$
-5.83
0.00
-6.26
To get DCFR, go to "Tools" and function "Solver." Set target cell as $R51, to be made = 0 by
12.1 changing cell $C$49. Solver must be rerun after a change on any sheet.
1.53
1.36
1.20
1.06
0.94
0.83
0.74
0.65
0.58
0.51
0.45
0.40
0.36
0.32
0.00
-10.32
-21.33
-36.51
2.30
14.53
12.12
9.47
8.02
6.32
4.92
4.13
3.46
2.89
0.00