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Fillable Printable Cost Effectiveness Analysis

Fillable Printable Cost Effectiveness Analysis

Cost Effectiveness Analysis

Cost Effectiveness Analysis

Table E-5
Cost Effectiveness for Low NOx Burner
E-9
Cost-effectiveness analysis is for a low NOx burner retrofit to a 7 MMBtu boiler
Capital Costs
DIRECT COSTS Cost Factors
(1) Purchased Equipment Costs
(a) Basic Equipment and auxiliaries vendor quote = $ 26,000 1
(b) Instrumentation 0 * (1)(a) = $ - 2
(c) Sales taxes 0.03 * (1)(a) = $ 780 2
(d) Freight 0.05 * (1)(a) = $ 1,300 2
Purchased Equipment Cost (PEC) $ 28,080
(2) Direct Installation Costs
(a) Foundation and supports Not Applicable = $ - 3
(b) Handling and Erection 0.14 * (PEC) = $ 3,931 2
(c) Electrical Not Applicable = $ - 3
(d) Piping 0.02 * (PEC) = $ 562 2
(e) Insulation for ductwork Not Applicable = $ - 3
(f) Painting Not Applicable = $ - 3
Direct Installation Costs (DIC) = $ 4,493
(3) Site Preparation (SP) As required = $ - 3
(4) Buildings (BLDG) As required = $ - 3
Total Direct Costs (TDC) (PEC) + (DIC) + SP + BLDG = $ 32,573
INDIRECT COSTS
(5) Engineering 0.1 * (PEC) = $ 2,808 2
(6) Construction and field expenses 0.05 * (PEC) = $ 1,404 2
(7) Contractor fees 0.1 * (PEC) = $ 2,808 2
(8) Start-up 0.02 * (PEC) = $ 562 2
(9) Performance test 0.01 * (PEC) = $ 281 2
(10) Contingency 0.03 * (PEC) = $ 842 2
Total Indirect Costs (TIC) = $ 8,705
TOTAL CAPITAL INVESTMENT (TCI) (TDC) + (TIC) = $ 41,278
Notes and assumptions:
1 Based on vendor quote.
2
3 Assumes no costs associated with this item.
Based on EPA's Air Pollution Control Cost Manual, Sixth Edition, EPA-452-02-001, January 2002, Section 3.2, Chapter 2.
Table E-5
Cost Effectiveness for Low NOx Burner
E-10
Annualized Costs
DIRECT ANNUAL COSTS Cost Factors
(1) Operating Labor 8 hours/year * $75 = $ 600
(2) Supervisory Labor 15% of (1) = $ 90 4
(3) Maintenance Labor 8 hours/year * $75 = $ 600
(4) Maintenance Materials 100% of (3) = $ 600 4
(6) Utilities
Fuel: 0 MMcf/yr * $0 = $ - 6
Electricity: 0 kW-hr * $0 = $ - 6
Total Direct Annual Costs (TDAC) = $ 1,890
INDIRECT ANNUAL COSTS
(7) Overhead 60% of (1)+(2)+(3)+(4) = $ 1,134 4
(8) Administrative Charges 2% of (TCI) = $ 826 4
(9) Property Tax 1% of (TCI) = $ 413 4
(10) Insurance 1% of (TCI) = $ 413 4
(11) Capital Recovery $41,278 * 0.142 = $ 5,861
Total Indirect Annual Costs (TIAC) = $ 8,647
TOTAL ANNUALIZED COSTS (TAC) (TDAC) + (TIAC) = $ 10,537
Cost Effectiveness Summary
TOTAL TONS NOx REMOVED PER YEAR = 2 8
COST EFFECTIVENESS ($ per ton removed) (TAC) / TPY) = $ 5,268
Notes and assumptions:
4
5 Annual operating and maintenance labor costs are assumed.
6 Assumes no costs associated with increased fuel and electrical consumption.
7 Based on the Total Capital Investment (TCI) and a capital recovery factor based on a 10-year equipment life
and a 7% interest rate.
8 Emissions reduction based on vendor information.
4,5
4, 5
4, 7
Based on EPA's Air Pollution Control Cost Manual, Sixth Edition, EPA-452-02-001, January 2002, Section 3.2, Chapter 2.
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