JNTUK B.Tech Process Engineering Economics gives you detail information of Process Engineering Economics R13 syllabus It will be help full to understand you complete curriculum of the year.
Learning Objectives
- To understand the various terms and activities related to economics which can be useful during economical evaluation of any chemical process industries.
- To understand the concepts and calculations involving time value of money, present and future worth of property
- To have the knowledge about capital recovery, depreciation and depreciation calculations
- To understand the methodology of cost estimation including fixed and variable costs by considering the concept of cost indices.
- To understand the concept of balance sheet, profit and loss accounting and income statement
- To understand the concept of profitability evaluation of project and select the best process alternative based on its economic evaluation
- To understand the concept of rate of return and payout time, and replacement of existing facilities
- To have knowledge of the economic balance in evaporation, fluid flow, heat and mass transfer, cyclic operations, reactors and inventory in process operations
- To learn about the economic analysis of a complete process
- To learn about multivariable input-output analysis for analyzing the production of chemical products
UNIT-I: Introduction: The process industries – capital and interest – economics and the process engineer. Value of Money – Equivalence: Value of money – equations for economic studies – equivalence – example problems – the bond problem.
UNIT-II: Amortization: Capital recovery – depreciation – straight-line method, sinking-fund method, fixed percentage method – interest in depreciation calculations – depreciation accounting – depletion Capital Requirements for Process Plants: Cost indices – equipment costs – the Williams six- tenths Factor – service facilities – buildings and other non-process items – capital requirements for complete plants-approximate cost estimates-detailed cost estimates – total and process investment – the balance sheet – sources of capital.
UNIT-III: Costs, Earnings, Profits and Returns: Variable costs – fixed costs-explanation of individual items of fixed costs-interest as an Item of cost – using cost data-cost studies-the Income statement-income statement ratio – profits and earnings-a discussion of theoretical economy and accounting-analysis of the income statement – economic production charts – capacity factors – incremental costs – differential analysis of economic production charts Economics of Selecting Alternates: Annual cost method – present worth method – equivalent alternates.
UNIT-IV: Rates of Return and Payout Time – Replacements: Rate-of-return method – payout-time method – effect of source of capital – nonproductive investments and taxes – consideration of capacity factor – replacement of existing facilities – irreducible factors in economic analyses. Economic Balance: Economic balance in evaporation – economic vessel design – economic balance in fluid flow, heat transfer and mass transfer – economic balance with two variables, combined operation-combined operations with one variable- combined operations with two variables, combined operations with alternates.
UNIT-V: Economic Balance in Cyclic Operations: Batch operations (fixed cycle time) – batch operations (variable cycle time) – multiple equipment units – semicontinuous operations. Economic Balance in Reactors: Economic analysis for variable feed and product grades, variable recovery – economic balance for waste stream concentrations – economic balance for yield in process operations-yield in a batch reactor (catalytic or noncatalytic)-yield in continuous multistage reactors (noncatalytic)- yield in a flow reactor (catalytic)
UNIT-VI: Economic Balance and Inventory in Process Operations: Semicontinuous operations – batch operations – non-repetitive operations – process inventory considerations – the general case of inventory – general summary of economic balance. Economic Analysis of A Complete Process: Operating plants-appraised value-earning value- stock and bond value – proposed plants-capital requirements-estimated annual returns – evaluation – reliability of cost estimates.
Outcomes: After the course work, the students will be able to
- become familiar with various aspects related to economics and can apply them for economic evaluation of chemical process and decide its economic feasibility
- Analyze cash flow sequences and solve problems involving time value of money
- Calculate profitability, rate of return of investments and cost estimation.
- Read and understand corporate financial statements (Balance sheet, income statement, cash flow statement).
- Choose projects/equipment from a set of possible alternatives.
- Assess the impact of depreciation, taxation and other economic factors on the project’s feasibility.
- Develop policies for assets replacement.
- Assess alternative financing modes.
- Make financially prudent decisions in everyday life.
- Calculate optimal sizes of new chemical processes and subsequent expansion of capacity.
- Describe multivariable input-output analysis.
Text Book
- Process Engineering Economics, H.E. Schweyer, McGraw-Hill, New York, 1955.
Reference Books
- Plant Design and Economics for Chemical Engineers, M.S.Peters and K.D.Timmerhaus, McGraw Hill, 4th Ed., 1991.
- Cost and Optimization Engineering, F.C. Jelen, McGraw-Hill, International ed., 1997.
- Process Engineering Economics, James R. Couper, Marcel Dekkar, Inc., 2003
- Introduction to Process Economics, F.A. Holland, F. A. Watson, J. K. Wilkinson, 2nd Edition, John Wiley & Sons, 1983.
- Schaum’s outline of engineering economics, Jose Sepulveda, William Souder, Byron Gottfried, McGraw-Hill, 1984.
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