Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1). (12.5 pts) Capital Cost Estimation. Your Boss wants you to reevaluate an old 10,000 tonne per day copper mineral processing project from 1998 to

image text in transcribed

1). (12.5 pts) Capital Cost Estimation. Your Boss wants you to reevaluate an old 10,000 tonne per day copper mineral processing project from 1998 to see how much capital would be required now to build and operate a 20,000 tonne per day plant. The Marshall and Swift Index in 1998 was 1100 and in 2018 it is 2000. In 1998, the delivered equipment purchase costs for a 10,000 tonne per day operation were as follows; Materials HandlingS 5.0 Million USD Crushing and Grinding S 10.0 Million USD Flotation Liquid/Solids Handling S 1.0 Million USD S 2.5 Million USD A). Update the 1998 delivered equipment costs to 2018 costs using the 1998 and 2018 Marshall and Swift Index Ratios Method. B). Update the newly calculated 2018 delivered equipment costs from 10,000 tonne per day to 20,000 tonne per day using the 'six tenths rule' of differing equipment capacities. C. Determine the new updated 2018 20,000 tonne per day Capital Cost Estimate using the Plant Component Cost Ratio Method. This is shown in Table 6. List and justify the factors chose to use in steps 2 through 11. A spreadsheet is the easy way to do this. Table 6: Generalized Plant Component Cost Ratio Method 1. Delivered equipment costs from references and on current cost index basis (if delivery costs unavailable use 1.03 times purchased equipment costs) $000,000 2. Equipment installation. 3. Piping, material and labor, excluding service piping 4. Electrical, material and labor, excluding building lighting 5. Instrumentation. 6. Process buildings, including mechanical services and lighting 7. Auxiliary buildings, including mechanical services and lighting 8. Plant services such as fresh water systems, sewers, compressed air, etc 9. Site improvements such as fences, roads, railroads, etc 10. Field expenses related to construction management. 11. Project management including engineering and construction. $000,000 $000,000 000,000 $000,000 $000,000 000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions