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?
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
MAJOR PROCESS TYPES CONTINUOUS STEADYSTATE- Used for world-scale production of commodity chemicals Large, centrally located plants BATCH Used for small-scale production of high value-added chemicals JIT MINIPLANT Used for on-site production of hazardous or difficult to transport chemicals Continuous Steady-State is the dominant process type
ESIGN METHODOLOGY III: RECYCLE STRUCTURE OF THE PROCESS goAL-- Determine alternate recycle structures for the process based on reactor operating requirements