Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule Calculator

Sixth Tenth Rule Formula:

\[ C2 = C1 \times \left(\frac{Q2}{Q1}\right)^n \times \left(\frac{I2}{I1}\right) \]

Capital Cost of Project with Capacity Q1:

Capacity of Equipment 1:

m²

Capacity of Equipment 2:

m²

Value of Index:

Cost Index 1:

Cost Index 2:

Capital Cost of Project with Capacity Q2:

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1. What is the Sixth Tenth Rule?

The Sixth Tenth Rule, also known as the 0.6 Rule or the Capacity Exponent Rule, is a cost estimation technique used in engineering economics to estimate the capital cost of a project based on capacity scaling and cost index adjustments.

2. How Does the Calculator Work?

The calculator uses the Sixth Tenth Rule formula:

\[ C2 = C1 \times \left(\frac{Q2}{Q1}\right)^n \times \left(\frac{I2}{I1}\right) \]

Where:

$ C2 $ — Capital Cost of Project with Capacity Q2 ($)
$ C1 $ — Capital Cost of Project with Capacity Q1 ($)
$ Q2 $ — Capacity of Equipment 2 (m²)
$ Q1 $ — Capacity of Equipment 1 (m²)
$ n $ — Value of Index (typically around 0.6)
$ I2 $ — Cost Index 2
$ I1 $ — Cost Index 1

Explanation: The formula accounts for economies of scale in capacity expansion and adjusts for inflation or cost changes using cost indices.

3. Importance of Capital Cost Estimation

Details: Accurate capital cost estimation is crucial for project feasibility studies, budget planning, investment decisions, and financial modeling in engineering and construction projects.

4. Using the Calculator

Tips: Enter all values with appropriate units. The index value 'n' typically ranges from 0.5 to 0.8, with 0.6 being a common default value for many industrial processes.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical range for the index value 'n'?
A: The index value typically ranges from 0.5 to 0.8, depending on the industry and process type. Chemical processes often use 0.6, hence the name "Sixth Tenth Rule."

Q2: How are cost indices determined?
A: Cost indices are published by various organizations and represent the relative cost of construction, equipment, or materials over time compared to a base period.

Q3: When is this estimation method most appropriate?
A: This method is most appropriate for preliminary cost estimates when scaling existing processes or equipment to different capacities within reasonable size ranges.

Q4: What are the limitations of this method?
A: The method assumes similar technology, materials, and construction methods. It may not account for significant technological changes or unique site conditions.

Q5: How accurate is this estimation technique?
A: For capacity changes within a factor of 2-3, accuracy is typically ±20-30%. For larger capacity changes, accuracy decreases significantly.