Question 1:

Part A:
CEPCI for 2019 = 607.5
Heat exchanger, mixer and tank is used as equipment as follow:
1. Heat exchanger
Shell and tube with floating head, carbon steel
2. Mixer
Impeller, 3 spares
3. Storage tank
Floating roof

                 
Unit
100
      Number        
             
  CEPCI 607.5        
             
User Added Equipment              
Shell Tube Area Purchased Bare
Exchanger Pressure Pressure (square Equipment Module
Exchangers Type (barg) (barg)   MOC meters) Cost Cost
Carbon Steel
/ Carbon $ $
E-101 Floating Head 100 100   Steel 50 30,900 121,000
Carbon Steel
/ Carbon $ $
E-102 Floating Head 100 100   Steel 100 38,800 152,000
Carbon Steel
/ Carbon $ $
E-103 Floating Head 100 100   Steel 150 47,100 185,000
Carbon Steel
/ Carbon $ $
E-104 Floating Head 100 100   Steel 200 55,600 218,000
                 
Purchased Bare
Power Equipment Module
Mixers Type (kilowatts) # Spares       Cost Cost
$ $
M-101 Propeller 30 3       285,000 393,000
$ $
M-102 Propeller 60 3       395,000 546,000
$ $
M-103 Propeller 90 3       492,000 679,000
$ $
M-104 Propeller 120 3       581,000 802,000
                  
                 
Volume Purchased Bare
Storage (cubic Equipment Module
Tanks Tank Type meters)         Cost Cost
$ $
Tk-101 Floating Roof 5000         536,000 589,000
$ $
Tk-102 Floating Roof 10000         805,000 886,000
$ $
Tk-103 Floating Roof 15000         1,060,000 1,160,000
$ $
Tk-104 Floating Roof 20000         1,300,000 1,430,000
                 
                 
 
Total Bare $
Module 5,626,400 $
            Cost 7,161,000

Part B:
Cost for family of each equipment:
4 Heat exchangers in 2019 = $ 676,000
4 mixers in 2019 = $ 2,420,000
4 storage tanks in 2019 = $ 4,065,000
Now costs of these equipment in base year 2010:
4 Heat exchangers in 2010 = $ 614,000
4 mixers in 2010 = $ 2,193,000
4 storage tanks in 2010 = $ 3,687,000
:: Area is same therefore, Aa = Ab = A
According to the equation:
n
Ca Aa
=( )
Cb Ab

Ca = cost in 2010
Cb = cost in 2019
For heat exchanger:
 n
676000 A
=( )
614000 A
Cost exponent = n = infinity
Similarly, for mixers:
n
2420000 A
=( )
2193000 A
Cost exponent = n = infinity
Similarly, for tanks:

3687 000 A n
=( )
4065 000 A
Cost exponent = n = infinity
Cost exponent is not even close to rule n=0.6. the reason is size is same. cost exponent shows
effect of size and cost.

Question 2:
The total purchase cost for all the equipment in question 1 = $ 5,626,400

Direct Costs Million $

Purchased equipment, E' 5.626
Delivery, fraction of E' 0.10 0.10 0.10 0.10 0.563
Subtotal: delivered equipment         6.189
Purchased equipment installation 0.45 0.39 0.47 0.47 2.909
Instrumentation&Controls(installed) 0.18 0.26 0.36 0.36 2.228
Piping (installed) 0.16 0.31 0.68 0.68 4.209
Electrical systems (installed) 0.10 0.10 0.11 0.11 0.681
Buildings (including services) 0.25 0.29 0.18 0.18 1.114
Yard improvements 0.15 0.12 0.10 0.10 0.619
Service facilities (installed) 0.40 0.55 0.70 0.70 4.332
Total direct costs 1.69 2.02 2.60 2.60 22.281

Indirect Costs
Engineering and supervision 0.33 0.32 0.33 0.33 2.042
Construction expenses 0.39 0.34 0.41 0.41 2.538
Legal expenses 0.04 0.04 0.04 0.04 0.248
Contractor's fee 0.17 0.19 0.22 0.22 1.362
Contingency 0.35 0.37 0.44 0.44 2.723
Total indirect costs 1.28 1.26 1.44 1.44 8.912
 Fixed capital investment (FCI) 31.193
Working capital = 40% of FCI = 0.4*31.193 million dollars
Working capital = 12.477 million dollars