The purpose of this paper is to discuss several economic factors commonly used in the evaluation of equipment for the industrial user. The effect of major operating and fixed cost variables is illustrated. Also included are several curves which permit rapid evaluation of net payout, end of period cumulative net cash flow, and discounted rate of return after Federal income taxes once the gross payout period has been established. The application of these economic factors and investment criteria are illustrated by use of an example comparing two energy supply systems for a process requiring both power and heat.

This content is only available via PDF.