The purchased cost of a shell and tube heat exchanger, carbon shell, stainless steel tubes, heat transfer area 500 m^2, was £7600 in January 1998; estimate the cost in January 2006. Use the Process Engineering plant index.

Question

The purchased cost of a shell and tube heat exchanger, carbon shell, stainless steel tubes, heat transfer area 500 [latex]m^{2}[/latex], was £7600 in January 1998; estimate the cost in January 2006. Use the Process Engineering plant index.

Accepted Answer

From Figure 6.1:

Index in 1998 = 106

2000 = 108, 100 (change of base)

2004 = 111

[latex] ext { So, estimated cost in January } 2000=7600 imes 108 / 106=£ 7743 ext {, }[/latex]

[latex] ext { and in } 2004=7743 imes 111 / 100=£ 8595[/latex]

From Figure 6.1, the average increase in costs is about 2.5 per cent per year. Use this value to predict the exchanger cost in 2006.

[latex] ext { Cost in } 2006=8595 imes(1.025)^{2}=£ 9030[/latex]

[latex] ext { Say } £ 9000[/latex]

Question 6.1: The purchased cost of a shell and tube heat exchanger, carbo...

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