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    Example: A 100 hp air compressor costs $3000 five years ago when the cost index was 130. Estimate the cost of a 300 hp compressor today when the cost index is 255. The exponent for a 300 hp air compressor is 0.9. Solution: Let C300 represent the cost estimate today

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    Association for Advancement of Cost Engineering International (AACEI), which AACEI defines as a “study or feasibility”-level estimate. [2] Specifically, to develop a study estimate, the following must be known: Location of the plant; Location of the source within the plant;

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    where C is the purchased cost, I is the cost index, 1 is the base time and 2 refers to the time when cost is desired. The cost index in this paper is taken from Chemical Engineering Plant Cost Index (CEPCI).

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    Cost of piping was not included in the analysis of economics. The value of the Chemical Engineering Plant Cost Index (CEPCI) in 2017 was used to adjust for inflation from 2001 to 2017. The CEPCI value in 2017 was 541.7 . Assumptions used in the economic analysis were followed .

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    Cost = $10,000,000 ϫ (394.1/125.7) = $31,300,000 (3) FIGURE 2 .2The revised CEPCI shows a slight tendency to decline while the old index is rising during 2001 FIGURE 3 .3The revised Equipment subindex shows a steady decline while the old Equipment subindex is nearly constant during 2001 FIGURE 4 .4There is no discernable difference in Construction Labor subindex in 2001 between the revised and the older version FIGURE 5 .5There is no significant difference in Buildings Cost …

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    The cost index used in this study is based on the Chemical Engineering Plant Cost Index (CEPCI). The equipment purchasing cost also depends on the size, generally summed as:C P2 = C P1 S 2 S 1 m(6)with C P2 the equipment cost for equipment size 2, C P1 the equipment cost for equipment size 1, S 2 as the equipment size 2, S 1 as the equipment

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    CHEMICAL ENGINEERING CHEMICAL ENGINEERING WWW.CHE.COM JANUARY 2006 Chemical Engineering Plant Cost Index from 1950 to 2005 500 450 400 350 300 250 200 150 100 50 0 1940 y = 2E-07x6 - 0.0028x5 + 13.738x4 - 35882x3 + 5E+07x2 - 4E+10x + 1E+13 R2 = 0.9933 1950 1960 1970 1980 1990 2000 2010 YEAR CEI 1980 261.2 1981 297 1982 314 1983 316.9 1984 322.7

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