Homework 15 2010 Solution

# Homework 15 2010 Solution - Lecture #11 detailed 8 steps...

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Max Points Student Self-Grade Instructor Grade #1 300 #2 300 #3 300 #4 500 #5 600 Total 2000 0 0 Scaleup Exponent Heavy Metal 0.20 Large Pumps, Motors, Fans 0.30 Tanks, Piping 0.40 Fabrication Intensive 0.60 Small Pumps, Motors, Fans 0.80 Control Equipment 0.90 Lecture #11 detailed 8 steps towards developing a Capital Investment Project, and "Rules of Thumb" for estimating the Total Installed Capital, based on Scaling Up an #11 requires using some of the knowledge in both lectures. Problems #1 -3 requir charged points off if your choices are logical and clearly explained, but will be factors.

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Deduct 10 points for each of the solution factors not used. Deduct 10 points for each of the solution factors not used. Deduct 10 points for each of the solution factors not used. Construction Projects Inflation Index 2000 1.00 2001 1.02 2002 1.04 2003 1.07 2004 1.10 2005 1.14 2006 1.20 2007 1.25 2008 1.30 2009 Forecast 1.35 2010 Forecast 1.40 Lecture #7 covered Management of Capital Projects with some d Escalating equipment quotes and using Factors. Homework ire qualitative judgement on your part. You will not be e charged if you do not include the five most obvious
Equipment Quote \$400,000 Quote Year Equipment Quote adjusted for Scale 1.32 14.29% 24.49% 2010 2011 Depreciation, \$ per Year \$344,506 \$590,410 \$2009 Cost Low Direct Cost - Purchased Equipment \$648,179 15% You are required to develop an estimate for TIC of a 1,000,000 Gallons per Year Black Liq a Year 2005 equipment only quote for 500,000 Gallons. Use the scaleup factors (Instructi Exponent you used . Use the chart below to calculate the Factored 2010 TIC using the Inl "Mid" except for two that are obviously either "High" or "Low". Shade the cells selected wit Schedule for the investment, assuming 7-Year MACRS schedule (100 points) . Show all A. Explanation for Scaleup Factor Tanks, Piping B. Explanation for the (Minimum 5) estimating Factors that you changed from Midp

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- Purchased Equipment Erection \$132,960 2% - Instrumentation and Controls \$132,037 3% - Piping \$166,200 2% - Electrical Systems \$144,040 2% - Buildings \$144,040 0% - Yard Improvements \$- 0% Foundations \$299,160 6% - Land \$- 0% Sub-Total Direct Cost \$1,666,615 30% Indirect Cost - Engineering \$168,046 3% - Construction Expenses \$144,040 3% - Legal Expenses \$24,007 0% - Contractor Fee \$108,030 2% - Inflation \$144,040 3% - Contingency \$156,043 3% Sub-Total Indirect Cost \$744,206 14% Total Installed Cost \$2,410,821 44%
Escalation Factor 1.23 \$648,179 17.49% 12.49% 8.93% 8.92% 2012 2013 2014 2015 \$421,653 \$301,112 \$215,286 \$215,045 Factored Equipment Es Mid High Low Mid 27% 39% 1.00 1.00 quor Storage tank, to be installed in 2010. (200 Points). The file estimate available to you is ions) and develop an estimate for TIC in 2010 and explain why you selected the Scale Factor lation Factors (Instructions) and the Scaled Up Equipment Cost. All Factors should be set to th yellow color. Explain your selection logic for the factors. Calculate the Depreciation formulas: no Paste Special. point

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## This note was uploaded on 08/22/2011 for the course WPS 491 taught by Professor Phillips during the Spring '11 term at N.C. State.

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Homework 15 2010 Solution - Lecture #11 detailed 8 steps...

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