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The Lang factor method estimates fixed capital investment from

  • A.The land area required
  • B.Delivered equipment cost times a factor
  • C.The number of employees
  • D.The plant's rated output alone

Answer: B

Correct answer: Delivered equipment cost times a factor

The Lang factor method estimates fixed capital as

\[ FCI = f_L \times C_{equipment} \]

with \(f_L\) around 3 for a solids plant, 4 to 5 for a mixed one and above 5 for a fluid processing plant. The factor covers installation, piping, instrumentation, buildings and engineering - everything the equipment alone does not.

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