Cost Estimation, Profit Appraisal, Process Modeling, and Optimization
The process modeling and optimization procedures of this chapter require a knowledge of capital investment and operating costs of chemical plant, as well as methods of appraisal of profitability. To find optimum design parameters of a plant, a process model has to be set up so that capital and running costs as a function of the variables under consideration such as conversion, current density, and product purity can be determined The duty or throughput of the plant is based on a market survey and is usually fixed. Plotting process capital costs against process running costs leads to the “payback” time, how many years it will take for the production cost savings to recover the extra investment incurred for equipment. Profitability is then assessed, usually in terms of i,the discounted cash flow rate of return (DCFRR), which is related to payback time. The company decides whether i is acceptable or if another process must be looked at. Unfortunately, an optimized plant design does not guarantee profitability.
KeywordsHeat Exchanger Production Cost Oxalic Acid Capital Investment Cost Estimation
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