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Filtration and Vacuum Specialists since 1976
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The Micron
JB Systems Little Newspaper April 2005 1334 Greenville Rd. LaGrange, GA 30241 1-706-884-3006 |
Filtration and Vacuum Specialists since 1976
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Example Payback Analysis and Cost Worksheet |
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The following example is an analysis of how to use payback when considering whether to purchase a still. For the purposes of this example, we made the following assumptions: |
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Assumed Costs |
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Initial Capital Investment |
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| Distillation Unit | $6,000 | Distillation Unit | $6,000 | |
| Power | $0.061 / kWh | Installation | $1,700 | |
| Installation | $1,700 | Total Capital Investment | $7,700 | |
| Labor rate | $20 / hour | Annual Savings; Raw solvent savings | $4,752 | |
| Disposal | $200 / drum solvent; | Current disposal (24 drums) | $4,800 | |
| Labor for still (1 staff-hour per batch) | $350 / drum still botoms | Disposal after installation ( 3 drums ) | ($1,050 | |
| Labor for maintenance | 0.5 hours / week | Total Annual Savings | $8,502 | |
| Raw Solvent | $4.50 / gallon | . | . | |
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Annual Costs |
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| Operation | $3,640 |
| Utilities | 228 |
| Total Annual Costs | ($3,868) |
| Net Annual Savings | $4,634 |
| Payback period (approximately 2 years) | $7,700 Capital Costs |
| Annual Savings | $4,643 |
| Labor for maintenance | 0.5 hours / week |
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Cost Worksheet |
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Waste Solvent Generated |
(A) | Gallons per year: Galls/day x No. of working days/year = Drums per year: Galls/yr (A) divided by 55 (galls/drum) = |
| (B) | Drums per year: Galls/yr (A) divided by 55 (galls/drums) = | |
Capital Costs |
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| (C) | Recovery Unit Cost: = | |
| (D) | Installation Cost (include materials and labor): = | |
| (E) | Total Capital Costs: (C + D ) = | |
Annual Savings in Disposal |
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| (F) | Current Disposal Cost: drums/yr (B) X $/drum = | |
| (G) | Future Disposal Cost: %solids x drums/yr (B) x /drum solids= | |
| (H) | Net Savings for Disposal: (F - G) = | |
Annual Savings in Raw Solvents |
(I) | Galls.yr (A) x % liquid x $/gall new solvent = |
Annual Operating Costs |
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| (J) | Operation Labor: hours/week x rate/hr x 52 weeks/yr = | |
| (K) | Maintenance Labor: hours/week x rate/hr x 52 weeks/yr = | |
| (L) | Power Costs: Power req't (kWh) x operating hrs/yr x $/kWh = | |
| (M) | Water and Sewer if needed: = | |
| (N) | Total Operating Costs: (J + K + L + M) = | |
Net Annual Savings |
(O) | Disposal and solvent savings less operating costs: (H + I ) - M = |
Projected Payback Period |
(P) | (P) Capital Costs (E) divided by Net Annual Savings (O): (E/O) = |
| Regulatory Reminder: You are legally and financially responsible for properly handling your wastes. Hazardous wastes are regulated until they actually enter the recycling process. Before the spent solvent enter the still, you are responsible for complying with the regulations on proper accumulation, handling, transportation, and storage for hazardous waste. | ||
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We would like to thank the Washington State Department of Ecology for contributing this information contained in the newsletter
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