Zach\'s plant was a solid-fluid processing plant. Estimate the FCI, WC, and TCI
ID: 1168852 • Letter: Z
Question
Zach's plant was a solid-fluid processing plant. Estimate the FCI, WC, and TCI for Zach's project using the simplified Lang factors. Zach's senior design project had a total purchased equipment cost of $3,487,000. The heat exchangers cost $178,000, the field fabricated vessels cost $676,600, pumps plus drivers cost $28,000, and the column shells cost $295,000. Factor times delivered-equipment cost = fixed-capital investment or total capital investment for major additions to an existing plant. Lang factors Type of plant+ Fixed-capital investment Total capital investment Solid 4.0 4.7 Solid-fluid 4.3 5.0 Fluid 5.0 6.0Explanation / Answer
Fixed Capital Investment = Long term investment = $3487000
Working Capital Investment = Operations Investments = $178000 + $676600 + $28000 + $295000 = $1177600
Total Capital Investment = Fixed + Working Capital = $4664600
Estimated Fixed Capital Investment = FCI x 4.3 = $14994100
Estimated Total Capital Investment = TCI x 5 = $23323000
Estimated Working Capital Investment = Estimated Total Capital Investment - Estimated Fixed Capital Investment
= $23323000 - $14994100 = $8328900
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