ABSTRACT
Fixed capital investment cost is very important for the start up of any chemical plant, because it determine the evaluation of any project in a company. Before commencement of any chemical plant, there are certain amount needed for the operation such amount is called the working capital. Which is the capital needed for the plant to operate to the point when income is earned. It includes the cost of raw materials and intermediates in the process start up cost, finished methods inventories, and funds to cover outstanding accounts from customers. Fixed capital is of two types namely; the manufacturing fixed capital investment and non – manufacturing fixed investment. The methods use for estimating or calculating fixed capital investment cost in chemical plant or process industries includes the followings;
For any chemical plant operation, fixed capital investment cost is necessary, to determine the evaluation of any project.
TABLE OF CONTENT
CHAPTER ONE
1.1 Manufacturing fixed capital investment 2
1.2 Non-Manufacturing fixed capital investment 3
1.3 Method use for calculating fixed
capital investment 4
1.4 Types of compartmentalization 6
CHAPTER TWO
(net present value) method 15
CHAPTER THREE
3.0 Estimating fixed cost investment 21
3.1 Method for estimating fixed cost investment 21
3.2 Detailed – item estimate 22
3.3 Unit-cot estimate 22
3.4 Percentage of delivered equipment cost 23
3.5 Lang factors for approximation of
capital investment 24
3.6 Factors considered in estimating cost 24
3.7 Prevailing cost 25
3.8 Inflation 26
3.9 Foreign exchange rates 28
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