ENGINEERING ECONOMICS ESTIMATING THE PROFITABILITY OF A CHEMICAL PLANT Estimating Investment Estimating Cost of Production Profitability Evaluation Return on Investment (ROD) Payout time(Tpay) DCF Rate of Return(DCFROR) Transfer Price

ENGINEERING ECONOMICS I TO INVEST, OR NOT TO INVEST, THAT IS THE QUESTION. (With apologies to William Shakespeare) Given one or more potential projects, how do we decide in which to invest, if any? What criteria do we use to evaluate potential projects?

CONTENTS INTRODUCTION A. Types of Material Balance Problems B. Historical Perspective CONSERVATION OF MASS A. Control volumes B. Holdup or Inventor C. Material Balance Basis D. Material balances I. PROCESSES The Concept of a process Basic processing functions C. Unit Operatic Modes of process Operations

CONCEPTUAL DESIGN OF SIMPLE DISTILLATION COLUMNS Goals: Determine feasibility of proposed separation Estimate tray and reflux requirements Estimate column diameter and height

SEPARATION OPERATIONS: INTRODUCTION What are separation operations? Typical applications of separation operations Physical basis for separation operations Basic types of separation operations Performance characterization of separation operations Choice of separation operations

EQUIPMENT DESIGN: BASIC CONCEPTS GOALS: Definitions and Concepts Types of Design Design Methodology

HEAT EXCHANGER NETWORK SYNTHESIS 1: TARGETING OBJECTIVES: 1 Determine the minimum energy inputs required for a process 2Determine the minimum number of heat exchangers required to transfer this energy 3Develop a methodology for determining where these heat exchangers should be placed in the process

DESIGN METHODOLOGY: INPUT-OUTPUT DECISIONS goaL-- Choose the process chemistry and feedstock most appropriate to the plant to be designed and determine the associated economic potential

DESIGN METHODOLOGY goaL-- Produce design for chemical plant that: Is economically acceptable and Is operable,ie., eIs safe → Is controllable Is reliable,and Is environmentally acceptable

ENGINEERING ECONOMICS II INVESTMENT ANALYSIS Companies(and individuals) invest money in order to earn money Examples Build a factory to make washing machines and dryers → Open laundromat Write novel(what is being invested here?) Get a degree in chemical engineering