ESTIMATION OF EQUIPMENT COSTS o Onsite= Cost of equipment purchase and installation ◆ Types of Estimates 5 Definitive: Required for capital commitment(+/-5%) Based on detailed design 2 Use vendor quotes, detailed bill of materials, etc. E Factored: Required for process commitment (+/-15% Based on detailed equipment design and purchased cost prcing a Based on factored installation costs E Conceptual: Used to guide process development(+/-30%) a Based on correlations(Guthrie) for installed cost 10/21/99 Engineering economics 310/21/99 Engineering Economics 3 5 ESTIMATION OF EQUIPMENT COSTS t Onsite = Cost of Equipment Purchase and Installation t Types of Estimates ð Definitive : Required for capital commitment (+/- 5%) X Based on detailed design X Use vendor quotes, detailed bill of materials, etc. ð Factored: Required for process commitment (+/- 15%) X Based on detailed equipment design and purchased cost pricing X Based on factored installation costs ð Conceptual: Used to guide process development (+/- 30%) X Based on correlations (Guthrie) for installed cost