Learn Aspen Plus in 24 Hours, Second Edition by Thomas A. Adams II

Author:Thomas A. Adams II
Language: eng
Format: epub
Publisher: McGraw Hill
Published: 2022-01-15T00:00:00+00:00

Figure 10.4 Changing the currency in the General Project Data form.

Click OK. You are next shown the regular workspace screen. On the left column of your regular workspace screen, there are three tabs at the bottom. Choose the first tab (Project Basis View), as shown in Figure 10.5.

Figure 10.5 The Project Basis View.

It is here that you can specify many more things. For example, go down to the Project Basis | Investment Analysis | Investment Parameters tab and double-click on it. Here we can change the key economic parameters like tax rate, desired rate of return, depreciation methods, etc. Change the tax rate from 40% (a typical U.S. amount is 35% federal + 5% state but it varies by state) to 26.5% (a typical amount is 15% Canada Federal + 11.5% Ontario Provincial) and click OK. Also, as we are assuming Canadian costs, we also need to bump our labor costs up. Double-click the Project Basis | Investment Analysis | Operating Unit Costs tab and bump operators from 20 to 40 $/hr and supervisors to 60 $/hr (again these are Canadian dollars). Also, set the electricity price to 15 ¢/kWh (0.15 $/kWh), which was the average Ontario’s mid-peak price at the end of 2020, and click OK.

Similarly, we can change the cost indexing, that is, how much more we have to pay than the base cost due to inflation and changes in the market. In the version used in this edition (V12), the base costs in the database are for the first fiscal quarter of 2019, and you can check yourself by looking in the title bar of the window of the program when you first open it. Because we left the Project Country Base as the United States, it will use its database of prices for things sold in the United States in the first quarter of 2019. If we wanted, the program also has databases for the United Kingdom, Japan, the European Union, or the Middle East as well. Let’s assume that right now in the first quarter of 2021, Americans have to pay 5% more for equipment than they did in 2019, and Canadians have to pay 10% more than in the United States even adjusting for the exchange rate. This means that we are assuming that our 2021 Canadian costs are 1.1 × 1.05 = 1.155 (or 15.5%) more than the basis costs for the United States in 2019. Aspen Plus defines the base factor as 100 for the base case. So for a 15.5% increase in cost, we need to change the index for equipment to 115.5.

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