Document 7MMxJ35gL6y7Mzo7MqpzBNLba

746 CHAPTER 54 1960 Guide Table 1___ Cost Dollars per Too for a Complete System, Including Heating and Cooling Coils, Fan, Duds, Refrigeration Equipment, Temperature Controls, etc.* 12 3 6 Unit Codi 6 78 Total CocT* 9 10 11 Unit Corfi* 12 13 PsfrfgaroHon Root Area Sqft Air Ditfrib* trted Co FI tioo Equip ment per Ton Duct*, Fans, Heat ftefrigero* ing Cods, fton Equip etc. ment Air HantUlng Equipment Total Evaporative Concenters Per Ton Per Sq Ft Floor Per Cfm Per Ton Cooling Towers Per Ton 8,333 12,500 250 16,666 25,000 224 212 33,332 50,000 204 150 50,000 75,000 195 66,664 100,000 192 83,333 125,000 187 100,000 150,000 182 133,328 200,000 165 500 166,666 250,000 158 1.05 0.98 0.95 0.92 0.91 0.90 0.88 0.86 0.84 0-82 6,250 31,200 15,900 20,400 29,200 38,200 46,800 54,600 66,000 79,000 13,100 24,500 35,700 46,000 68,200 90,000 110,000 129,000 168,000 205,000 19,350 35,700 51,600 66,400 97,400 128,200 156,800 183,600 234,000 284,000 775.00 730.00 690.00 664.00 650.00 641.00 628.00 612.00 585.00 568.00 2.32 2.15 2.07 1.99 1.95 1.93 1.88 1.84 1.76 i:7i 1.55 1.43 1.38 1.33 1.30 1.28 1.25 1.23 1.17 1.14 190.00 155.00 120.00 90.00 60.00 52.00 50.00 48.00 46.00 44.00 42.00 40.00 Mg || in 4gpaztmeot iVmc, <zt (or industrial aiirr caoanoddiittiioonniinng* iianvvolving targe areas- Where a multiplicity o hriilllinp tuUele etui ejmtiMBt hem--. tieM OTBti dp BQt appty. t Wb ccn^vnUon of water b suited, add column U T <?Ctaasc?toduSertQf^mlwn/]^ntetasc if required, to cupport the weight of coding towera or evaporative cemdeosea. space for which the system is to be used; (2) the type of equipment to be employed as a part of the system; (3) the character of the business; and (4) the lease or ownership conditions. Depreciation, due to deterioration or obsolescence, must be considered in arriving at the amortization period. Main tenance and deterioration usually have the effect of offset ting one or the other. If a long depreciation period is to be used, then the item for maintenance, repair, and the re placement of wearing parts must be greater than for a short depreciation period. In determining the length of the amortization period, the owner's accounting practices will have considerable bearing upon the number of years used in the calculation. For taxation purposes, this period depends upon the use and the service to which the equipment is applied. At the present time indications are that varying interpretations on depre ciation will be made by the Bureau of Internal Revenue. While most air-conditioning equipment may be considered as having a normal useful life of 20 years for depreciation purposes, no final value for depreciation should be deter mined without consultation with the owner's tax consultant or perhaps referral to Bulletin F Publication 173, which is issued by the United States Treasury Department, Internal Revenue Service, and summarized in Table 2. Table 2 .... Probable Useful Life of Equipment* Life m V*ar* 1. Heat Producing Equipment (a) Boilers..................................... (b) Stokers and burners........... 20 20 2. Heat Distributing Equipment (o) Piping--copper.................................... . (b) Piping--iron......................................... (cj. Radiation--concealed........ ................ (a) Radiation--direct............................... (e) Valves......... ...................................... ' (0 Specialties............................................ same as bldg. 20 25 25 20 10 3. Aib Handling Equipment (a) Filters--automatic.............................. (5) Heating and cooling coils.. -. ....... (c) Spray humidifiers and dehumidifiera (d) Fans....................................................... (e) Air-conditioning units........ ........... . y) Motors.................................. (a) Electrical starting equipment......... (A) Pneumatic control systems....... : (*) Electric control systems................... 20 20 10 15 10 20 20 20 20 4;: Aib Distributing Equipment hi) Ductwork................................. fi) Outlets, grilles........................ (e) Duet insulation...................... -same as bldg. 20 ... 20 Interest The. interest charged to the cost of ownership may be based upon the average interest rate for the period during which the first cost of the equipment will be amortized. While some accountants do not include interest in the an nual fixed charges and consider it a negligible item, the money invested in air-conditioning, heating, or ventilating equipment, must be either borrowed or diverted from the owner's funds and converted to the purpose of making the installation. Whether it is borrowed or taken from surplus funds, the money thatvmight have been earned as interest is properly chargeable to the operation of the system. 5. Refrigerating Equipment () Centrifugal refrigerating machines.. () Reciprocating refrigerating ma chines......................................................... (c) Motors and starters................ .......... (d) Piping--copper....................................... (e) Piping--steel........................................... (/) Pumps................................................... 20 20 20 20 20 20 6. Wateb Saving Devices (a) Evaporative condensers...................... (5) Cooling towers........................................ (e) Wells.......................................................... 15 15 25 * T-T-n trota U. & Bureau of Internal Revenue BvlUtin F, ToMat aj Uacfvl Lntt ej DtpncasNe Property. Owning and Operating Costs Table 3 .... Owning and Operating Cost Pin# Cod Cost of mechanical system. Other costs.............................. First Cost (FC)--Total Annual Find Charges Amortization--Depreciation period Y Amortization and Depreciation Y+1 Annual Fixed Charges; Annual Mainteoance Codt Replacement or servicing of air filters.... Outside maintenance service......................... Water treatment................................................ Lubricating oil and grease.............................. Painting for corrosion protection or other purposes.................................................. .......... Replacement of worn parts.......... Refrigerant.................................... ................... Wages of engineer or operator.......... ............ Annual Maintenance Cost-- Total.............................................................. Anaoaf Service Cod Electric power costs rans.......................................................... Pumps--condenser water........................... Cooling tower pumps............... Refrigeration machines.............................. Steam Sewers . Charges for discharging water into pub- Annual Service Costs: Total........................................ Annual Fixed ' Charges.................................... -- Annual Service Costs. . .................................. -- Annual Maintenance Costs.............................--Annual ..Owning and Operating Coats-- . 747 Table 4 .... Approximate Combined Operating and Maintenance Cost for Large Air-Conditioning Installations, Using High-Quality Equipment* DoOarj per(Ton) (Tear) Painting (Water boxes and debumidifiers). Filters, clean and re-oil 4 times per year.. 0.40 o.n 0.45 1.50 * Estimated for lift. 5.17 The formulas for computing interest and amortization are given in Table 3. This table also serves as a check list for the various items to be considered in calculating the cost of ownership and operation. Taxes .. The taxes that may be charged to the property as a result of the improvement due to the installation of an air-condi tioning system, will vary, according to the practice of the official, agencies levying property taxes. - To the cost of the air-conditioning system can be charg&d the cost of that part of ah existing property which is removed or destroyed and rebuilt to install the air-conditioning system as this cost does, not result in an improved value of the struc ture. .. Insurance .toInsurance against losses by fire is ordinarily secured by. increasing the building fire insurance coverage cover all or part; of.-the. first cost of installing the air-conditioning and other mechanical systems. Various, types of. extended coverage are available for protection against.a number,of other types of losses. Boiler insurance may be extended to -cover the air-con ditioning equipment to protect.against.losses due to explo sion, rupture of piping, and similar hazards. Since insurance rates vary widely depending, upon the type of structure in which the equipment is..located and the nature of the own er's business, the rates are usually set by rating organizations specializing in this work. Exact insurance rates must be determined by consulting.the owner's underwriter. Rent If the equipment under .consideration is to.be located in rented or leased quarters, hr if additional;space must be rented, such expense becomes a fixed-charge. ' ..^ AAAINTBMANCE COSTS ` Maintenance charges consist of expense - for Tabor and material necessary to make repairs and replace parts, as well as cleaning, painting, inspection,' etc.', for the purpose of eliminating or minimizing -the need for repairs.' Generally; routine maintenance labor requirements will be the function of an operating engineer or staff. If the responsibility of the group extends to facilities beyond the equipment dis cussed here, it is important that only an equitable share-of the group's time.be. charge^ to maintenance. , . Extraordinary repairs are quite often' handled by separate maintenance divisions and the expense 'charged back to air conditioning, heating, and ventilating. In other cases, all