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Cost Estimation Of A Heat

Exchanger

Group Members
Chinthaka Perera
Chris Peng
Sandy Lee
Terry Peters
540:343 Engineering Economics Spring 1998
Outline

• Introduction and Problem Definition


• Designs of Heat Exchangers
• Base Cost Estimation
• Complete Cost Estimation
• Conclusions & Recommendation
• Questions

540:343 Engineering Economics Spring 1998


Problem Definition

•Heat cold water from 15 oC to 85 oC


using the minimum resources
•Area Limited to 50 square meters
•Minimize the cost of operation and
maintenance of the machine

540:343 Engineering Economics Spring 1998


Shell And Tube Heat Exchanger

Efficiency: 48%
Power: 7.317x10 5 Watts
Length of Pass: 4.7 meters, Life Cycle 5 yr.
540:343 Engineering Economics Spring 1998
Counter Flow Heat Exchanger

Efficiency: 48%
Power: 7.317 x 105 Watts
Length 129.55 meters, 8 revolutions, Life Cycle: 5yr.
540:343 Engineering Economics Spring 1998
Cross Flow Heat Exchanger

Efficiency: 61%
Power:2.92 x 105 Watts
Area: 28.4 square meters, Tubes: 7898, Life Cycle 25 yr.
540:343 Engineering Economics Spring 1998
Summary of Designs

Power Life Efficiency


(Watts) Cycle
Shell & 7.137 E5 5 yrs 48 %
Tube
Counter 7.137 E5 5 yrs 48 %
Flow
Cross 2.92 E5 25 yrs 61 %
Flow
540:343 Engineering Economics Spring 1998
Base Cost Estimating Technique

Base Cost = Cost of Materials to Construct Heat Exchanger


+ Cost Of Installation of Heat Exchanger

Conversion of Base Cost to Annual Worth using MARR = 10%


AWHeat Exchanger = (Base Cost) x (A/P,10%,Life Cycle)

540:343 Engineering Economics Spring 1998


Base Cost Estimation Of Heat
Exchanger Designs

Using Annual Worth and assuming repeatability


AWShell and Tube = - $ 14400
AWCounter flow = - $ 63400
AWCross flow = - $2200

Best Alternative for Heat Exchanger is


Cross Flow Heat Exchanger
540:343 Engineering Economics Spring 1998
Complete Cost Estimating Technique

Complete Cost = Base Cost + Operation and Maintenance

Conversion of Complete Cost to Annual Worth using MARR = 10%


AWHeat Exchanger = (Base Cost) x (A/P,10%,Life Cycle) +
(O & M) x (A/P,10%,Life Cycle)

540:343 Engineering Economics Spring 1998


Complete Cost Estimation

•Base Cost of Cross Flow Heat Exchanger - $ 2200


•Operation and Maintenance Cost + Cost of Gas - $ 2300

Total Cost Over Life Cycle - $ 4500

540:343 Engineering Economics Spring 1998


Conclusions & Recommendation

•Cross Flow Heat Exchanger is the most


effective for the purpose
•Cross Flow Heat Exchanger is the most Cost
Effective
Aside:
The Shell & Tube and Counter flow reused waste to heat
water.

Recommendation : Cross Flow Heat Exchanger


540:343 Engineering Economics Spring 1998
Questions ??

Design of Heat Exchanger…??


Base Cost Estimating Technique…??
Complete Cost Estimation…??
Choice of Heat exchanger …??

540:343 Engineering Economics Spring 1998

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