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· 2025

Capital Cost Estimation

Chris Burk

Short summary

This chapter clarifies terminology for capital cost estimates and explains how to estimate fixed capital by applying heuristic factors to the total installed equipment cost.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Capital costs are initial, one-time project expenses.
  • Estimates cover equipment, buildings, construction, and engineering.
  • Fixed capital can be estimated using heuristic factors applied to installed equipment costs.

AI-generated from the title and abstract; the full text is not read.

Abstract

Capital costs are one-time expenses that typically occur at the beginning of a project. They pay for equipment, buildings, construction, and engineering, among other things. This chapter opens by clarifying the (sometimes confusing) terminology related to capital cost estimates and then goes on to describe how fixed capital can be estimated by applying heuristic factors to the total installed equipment cost.

The authors' abstract, as published at the source., 2025 · DOI ↗

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Field: Finance

FinanceEconomics, Econometrics and Finance