Economic Appraizal of Equipments and Processes

Not applied

Theoretical-practical classes in which the theoretical concepts are implemented through exercises and case studies. The exercises appeal to the development of critical sense for the selection of the best alternative of technical and economic investment for the realization of a process in Environment.

Students should acquire the following skills:

1. Know the basic principles and concepts of financial calculus.

2. Know the principles of Economic Engineering.

3. Apply the tools of financial calculus and economic engineering to assess the economic viability of projects.

4. Know the principles and concepts of the main methods of evaluation of alternatives of equipments and technological processes used in Environment.

5. Ally the indicators of economic decision to the technical decision to select the best technological and economic alternative among several technical projects in Environment.

1. Concepts of financial calculus and economic engineering:

1.1 capital, interest and interest rates

1.2 capitalisation and discounting, inflation, amortisation

1.3 equivalence of capital, equivalence between rates for different periods

1.4 minimum rate of attractiveness

1.5 Net Present Value

1.6 Internal Rate of Return

1.7 Benefit/cost ratio

2. Evaluation of alternatives for equipment and processes:

2.1 comparison of alternatives

2.2 influence of inflation, equipment depreciation and taxes in the comparison between alternatives

2.3 risk and uncertainty in the evaluation of alternatives

2.4 selection of alternatives based on the sensitivity analysis of expected values

2.5 complexity factor method to estimate process costs

2.6 Chilton’s method to estimate process costs

NAO

PERRY, R.; CHILTON C., GREEN D. – Perry’s Chemical Engineer Handbook, McGraw-Hill International Editions, 2019

KENT, J. – Kent and Riegel’s Handbook of Industrial Chemistry and Biotechnology. Springer, 2007

KOROVESSI, E.; LINNINGER, A. – Batch Process. Taylor & Francis Pub., 2005

ALLEN, D.; SHONNARD, D. – Green Engineering: Environmentally Conscious Design of Chemical Processes. Pearson Education, 2001.

SIKDAR, K.; HALWAGI M. – Process Design Tools for the Environment. Taylor & Francis Pub., 2001

DIXON, J.; HUFSHMIDT M. – Economic Valuation Techniques for the Environment, John Hopkins University Press, Baltimore, 1990

DIXON, J.; CARPENTER R., FALLON L., MANAPIMOKE, S. – Economic Analysis of the Environmental Impact of Development Projects, Asian Development Bank, Manila., 1988.

HAPPEL, J.; JORDAN D. – Chemical Process Economics, M. Dekker, 2th ed, Universidade de Wisconsin-Madison, 1975, 511 pp.