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University of Wah,

Department of Chemical Engineering


Document No: UW/Ch.E/AF/REV00

UNIVERSITY OF WAH
WAH ENGINEERING COLLEGE
Department of Chemical Engineering
Assignment # 04
Course Title: Chemical Engineering Economics
Semester: Semester: 6th Course Teacher: Dr. Saleem Iqbal
Total Marks: 20 Time: 1 weeks (06/04/2020)
Course Code: Ch. E-310

Student Name: Muhammad Hamza


Reg No: Uw-17-che-bsc-024

Assignment Title: Cost Estimation (PLO-2-CLO-2)


Part 1: Instructions:
The assignment must be handwritten and then submit its PDF in google classroom

This is an individual assignment and late submission is not allowed.

Part 2: Question

1. Estimating cost of equipment using scaling factors and cost index.


The purchased cost of a 50-gal glass-lined, jacketed reactor (without drive) was $8350 in
1981. Estimate the purchased cost of a similar 3OO-gal, glass-lined, jacketed reactor
(without drive) in 1986. Use the annual average Marshall and Swift equipment-cost index
(all industry) to update the purchase cost of the reactor.
2. Estimation of fixed-capital investment by percentage of delivered equipment cost.
Prepare a study estimate of the tied-capital investment for the process plant described in
Example 1 if the delivered-equipment cost is $100,000.

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