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THERMEXPERT - Potential-pH diagram generator

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Corrosion Calculator

Corrosion Rate Calculator


Corrosion Economics Estimator

FINCALCULATOR - Corrosion Economic Calculator


TUTORIAL ON FINCALC - A COST OF CORROSION ESTIMATOR

David C. Silverman


Table of Contents

Introduction-What is FINCALC?
Using FINCALC-a step-by-step procedure
Background
  1. The Time Value of Money
  2. Application to Corrosion Economics
Research, Development, and Testing Input
          Capital Expenditure Input
Depreciation Input
Periodic Maintenance, Repair, or Other Expenses Input
Isolated Repair or Other One-Time Expenditure Input
FINCALC (Cost of Corrosion Estimator)

Isolated Repair or Other One-Time Expenditure Input

Unexpected repairs and other expenditures always occur no matter how thorough was the upfront testing and resulting quality of prediction. Parts can break down unexpectedly. A deposit can form in one location resulting in one isolated pit that causes a leak which must be repaired. An additional testing program may be undertaken for reasons such as improving corrosion monitoring or obtaining more complete knowledge of the ongoing corrosion process. One should assume that during the life of any project at least one isolated event occurs forcing an additional one-time cost. If more than one such event is anticipated, their average value should be used. Estimating such costs can be difficult so one approach might be to estimate the sensitivity to the number and average cost of these events.

FINCALC requires two entries in this area:
  1. the number of one-time expenditures expected
  2. the average cost of all of the one-time expenditures
FINCALC automatically spaces these expenditures so that they occur after constant time intervals from initiation and spread across the life of the project. For example, if the project lasts 10 years and 2 such events are anticipated, they are assumed to occur during years 3 and 6. Each such expenditure is assumed to be paid at the end of the year in which it is incurred. The tax rate is taken into account because the tax deduction is a credit against the total expenditure in the year incurred. Note that no provision is made for removal of any equipment at the end of the project life.

Previous Page: Periodic Maintenance, Repair, or Other Expenses Input

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David C. Silverman, Ph.D. - Primary Consultant
E-Mail:     dcsilverman@argentumsolutions.com
Phone:     314-576-3586
Fax:         314-754-9825
Address:   The Argentum House
                14314 Strawbridge Ct.
                Chesterfield, MO 63017