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One of the most important aspects of determining the overall economic viability of a chemical process is determining the capital cost. In addition to the purchase price of the equipment, capital costs include delivery and installation of equipment, preparation of land for construction, salaries of contractors and construction workers, and.
The accuracy of the total cost of a project will become more accurate as the project continues. The Association for the Advancement of Cost Estimating International (AACE International).
Because of the magnitude of costs associated with the start-up and maintenance of a chemical plant, there are often different project financing methods required to cover the capital needs. The two main methods of project financing are debt and equity financing. Debt financing.
For the early stages of the design process, it is often necessary to make quick capital cost estimates of total plant cost. The accuracy of these order of magnitude estimates are usually within ±50%.
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