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Arrange the steps of a capital cost estimate in order:

1. Apply a Lang factor to obtain the fixed capital investment

2. Obtain delivered equipment costs from quotations or correlations

3. Add the two to give the total capital required

4. Estimate working capital as a proportion of fixed capital

Select the correct sequence.

  • A.1, 2, 4, 3
  • B.2, 4, 1, 3
  • C.1, 4, 2, 3
  • D.2, 1, 4, 3

Answer: D

Equipment cost is the anchor for everything else in a factored estimate, and working capital is assessed once the fixed investment is known. A seasonal plant usually needs a larger working capital proportion than the standard figures suggest.

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