INVESTMENT ESTIMATION ◆ Total investment= Fixed Capital+ Working Capital+ start-Up Tiny= Fcap ◆ Rules of thumb Wcap 0.15 Tiny Stup.1 Fcap(Established nth/ plant C0.5 Fcap(First-of-a-King/ Pioneer/ plant So Tinv= Fcap+O. Fcap+o15 Tiny 1.3 Fcap(nth Plant 1.8 Fcap(Pioneer plant 10/21/99 Engineering economics 310/21/99 Engineering Economics 3 2 INVESTMENT ESTIMATION t Total Investment = Fixed Capital + Working Capital + Start-Up Tinv = Fcap + Wcap + Stup t Rules of Thumb Wcap ~ 0.15 Tinv Stup ~ 0.1 Fcap (Established [nth] Plant) ~ 0.5 Fcap (First-of-a-King [Pioneer] Plant) So: Tinv = Fcap + 0.1 Fcap + 0.15 Tinv = 1.3 Fcap (nth Plant) = 1.8 Fcap (Pioneer Plant)