Essentials Of Economic Decision Analysis For Chemical Engineering

There are things that chemical engineers need to know and things that they need to know about. They need to know the time value of money, and they need to know about using Solver in Excel for process optimization problems. They need to know how to describe a process or plant in a flowsheeting program, and they need to know about the options for the thermodynamic packages in the flowsheeting program. They need to know how to do material and energy balances on chemical processes, and they need to know about how to incorporate rate equations and equilibrium relations in the material and energy balance equations. The topics in economic decision analysis given here have details to ensure the depth for need to know and the breadth for the topics that are in the need to know about category. The topics follow in order of developing the information needed for economic decision analysis. Beginning with market analysis, this leads to the decision to evaluate a new process or plant. Then several levels of analysis are used to determine cost of manufacturing a new product to compare with the sales estimated from the market analysis. Profitability analysis uses the net present value, rate of return and the economic price for decisions. Total cost assessment used the triple bottom line to incorporate economic, environmental and sustainability costs and sustainability credits in the decision analysis. The optimal configuration of plants in a chemical production complex was evaluated using global optimization to the determination the best value of triple bottom line. Results included using multiobjective optimization to determine Pareto optimal solutions. Monte Carlo simulation was used to determine the sensitive of the optimal solution to the parameters in the constraint equations. Three appendices are included. In Appendix A, typical estimating charts are given for individual equipment cost and plant cost for use with quick estimation of total plant costs to be used with total product costs for preliminary estimates of profitability. In Appendix B supply and demand elasticity are described with evaluations for corn as a feed and a fuel, illustrating the difficulty in finding data to do the evaluation of these frequently used concepts. In Appendix C the latest status on global optimization is summarized with the currently more successful algorithms available in GAMS.

The authors cover two general topics: basic engineering economics and risk analysis in this text. Within the topic of engineering economics are discussions on the time value of money and interest relationships. These interest relationships are used to define certain project criteria that are used by engineers and project managers to select the best economic choice among several alternatives. Projects examined will include both income- and service-producing investments. The effects of escalation, inflation, and taxes on the economic analysis of alternatives are discussed. Risk analysis incorporates the concepts of probability and statistics in the evaluation of alternatives. This allows management to determine the probability of success or failure of the project. Two types of sensitivity analyses are presented. The first is referred to as the range approach while the second uses probabilistic concepts to determine a measure of the risk involved. The authors have designed the text to assist individuals to prepare to successfully complete the economics portions of the Fundamentals of Engineering Exam. Table of Contents: Introduction / Interest and the Time Value of Money / Project Evaluation Methods / Service Producing Investments / Income Producing Investments / Determination of Project Cash Flow / Financial Leverage / Basic Statistics and Probability / Sensitivity Analysis

With the help of this well-established book, the engineer can tackle cash flow, tax, depreciation, cost minimisation, uncertainty and risk. IChemE, the Institution of Chemical Engineers, is the center for chemical, biochemical and process engineering professionals worldwide. We are the heart of the process community, promoting competence and a commitment to sustainable development, advancing the discipline for the benefit of society and supporting the professional development of members. Some of the areas we publish in include: Safety in the process industries - the BP Process Safety series; Consultancy for chemical engineers; Project management in the process industries; Contract management in the process industries - International Forms Of Contract series; and Communication skills for engineers.

In today's rapidly changing global economy, business managers must have the tools and know-how to quickly evaluate the economic viability of potential solutions to engineering problems. An entire field of study has evolved to meet this need, yet there are few straightforward texts that outline the basics of engineering economics. Fundamentals of Engineering Economics is an accessible, comprehensive guide to the fundamental principles, concepts, and methods of engineering economics. Utilizing detailed case studies and exercises reflecting current trends and issues in economics, this book introduces students to a variety of key concepts, including estimation of the time value of money, evaluation of a single project, decision analysis, depreciation and taxes. This is an ideal textbook for Economic Analysis and Technical Applications students, or anyone seeking to gain an understanding of the core concepts of engineering economics. Fundamentals of Engineering Economics is organized into the following topical chapters: - Overview of Engineering Economy - Fixed and Variable Costs - Time Worth of Money - Five Methods for Evaluation of Capital Project - Comparison of Alternates and Decision Analysis - Depreciation and Replacement Analysis - Taxes, Tariffs, and Duties - Public Sector Initiatives and Benefit-to-Cost Ratio - Break-Even Analysis and Spider Plots Kal Renganathan Sharma serves as Adjunct Professor of Chemical Engineering at the Roy G. Perry College of Engineering at Prairie View A&M University. He received his B.Tech. from the Indian Institute of Technology (1985, Chennai, India) and his MS and Ph.D degrees from West Virginia University (1987, 1990, Morgantown, WV). All three degrees are in chemical engineering. Dr. Sharma is the author of 10 books, 4 book chapters, 21 journal articles, 528 conference papers and 108 other presentations. He is the recipient of several prestigious honors and awards, including the Outstanding Student of the Penultimate Year from the Rev. Brothers of St. Gabriel at RSK Higher Secondary School (Trichy, India) and an Honorary Fellowship from the Australian Institute of High Energetic Materials (Melbourne, Australia).

This reference outlines the fundamental concepts and strategies for economic assessments for informed management decisions in industry. The book illustrates how to prepare capital cost and operating expense estimates, profitability analyses, and feasibility studies, and how to execute sensitivity and uncertainty assessments. From financial reports to opportunity costs and engineering trade-offs, Process Engineering Economics considers a wide range of alternatives for profitable investing and for projecting outcomes in various chemical and engineering fields. It also explains how to monitor costs, finances, and economic limitations at every stage of chemical project design, preparation, and evaluation.

Engineers often find themselves tasked with the difficult challenge of developing a design that is both technically and economically feasible. A sharply focused, how-to book, Engineering Economics and Economic Design for Process Engineers provides the tools and methods to resolve design and economic issues. It helps you integrate technical a

Fundamentals of Engineering Economic Analysis offers a powerful, visually-rich approach to the subject—delivering streamlined yet rigorous coverage of the use of economic analysis techniques in engineering design. This award-winning textbook provides an impressive array of pedagogical tools to maximize student engagement and comprehension, including learning objectives, key term definitions, comprehensive case studies, classroom discussion questions, and challenging practice problems. Clear, topically—organized chapters guide students from fundamental concepts of borrowing, lending, investing, and time value of money, to more complex topics such as capitalized and future worth, external rate of return, deprecation, and after-tax economic analysis. This fully-updated second edition features substantial new and revised content that has been thoroughly re-designed to support different learning and teaching styles. Numerous real-world vignettes demonstrate how students will use economics as practicing engineers, while plentiful illustrations, such as cash flow diagrams, reinforce student understanding of underlying concepts. Extensive digital resources now provide an immersive interactive learning environment, enabling students to use integrated tools such as Excel. The addition of the WileyPLUS platform provides tutorials, videos, animations, a complete library of Excel video lessons, and much more.