Document GzzKYGM0wbB80JnxqjLyKwZyv

728 CHAPTER 54 1959 Guide Table 1___ Cost Dollars per Ton for a Complete System, Including Heating and Cooling Coils, Fan, Ducts, Refrigeration Equipment, Temperature Controls, etc* 61 2 3 5 Umf Cod* Total Cod* RtfrigtratlOfl Boor Ana Sqft Air Diaributad Co ft Refrigera tion Equip ment per Ton Ouds, Fan*. Heat ing Cclb, etc Refrigera tion Equip ment dling Equipment 8 Total 9 10 11 12 Unit Corfi4 Evaporative Condemn Per Tan Per Sq Ft Floor Per Cfm Per Ton* 13 Per Ton- 25 8,333 12,500 50 16,666 25,000 75 25,000 37,500 100 33,332 50,000 150 50,000 75,000 200 66,664 100,000 250 83,333 125,000 300 100,000 150,000 400 133,328 200,000 500 166,666 250,000 250 224 212 204 195 192 187 182 165 158 1.05 0.98 0.95 0.92 0.91 0.90 0.88 0.86 0.84 0.82 6,250 11,200 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 1.71 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 opes t-- m is department starts. or for industrial sir couditionin* involving large an once buMlnch hotels, and apartment bouses, these ooete do sot apply. a Iodudm only final water, drain, and electrical connections within the equipment n h Column* 6,10, and 11 repnwent <xxti where well water or city water is avallahte lor tomkraing purpwea, Wtes epaserraticn of water is required, add column IS or 13 to column * to obtain total coat per tan. _ mf yter'^tiiral retpfnrr-iny it reaoimd, to Kunoort the Weisht of eooiinx towers Or evaporative rrmdenaeri. 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 wUl be made by the Bureau of Internal Kevenue. 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 Schedule F which is issued by the Bureau of Internal Revenue and summarized in Table 2. 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 that might have been earned as interest is properly chargeable to the operation of the system. Toble 2 .... Proboble Useful life of. Equipment* Ufa m Year* 1. Heat Producing Equipment () Boilers....................................................... () Stokers and burners............................. 20 20 2. Heat Distributing Equipment () Piping--copper........................... () Piping--iron................................ (c) Radiation--concealed............ Id) Radiation--direct...................... (e) Valves and specialties:....... same as bldg. 20 25 25 10 3. Aib Handling Equipment (a) Filters--automatic.................. ............. lb) Heating and cooling coils.................. (c) Spray humidifiers and dehumidifiers. id) Fans..................... ...................................... (e) Air-conditioning units......................... CD Motors....................................................... (g) Electrical starting equipment......... (ft) Pneumatic control systems................ (*) Electric control systems..................... 20 20 10 15 10 20 20 15 15 4. Aib Distributing Equipment b) Ductwork................................. !5) Outlets, grilles........................ c) Duct insulation...................... 5. Refrigerating Equipment () Centrifugal refrigerating machines.. () Reciprocating refrigerating ma chines......................................................... (c) Motors and starters............................. (d) Piping--copper............. .............. (e) Piping--steel.......................................... same as bldg. 15 20 ` 20 20 20 20 20 6. Water Saving Devices (a) Evaporative condensers. (b) Cooling towers.................. (e) Wells.................................... 15 15 25 * Taken from U. 8. Bureau of Internal Revenue 6e9*del tj ProbabU (JmfaI Lift, revised 1042. Owning and Operating Costs Table 3 .:.. Owning and Operating Cost VJr- , ( Pint Cod UJK * Annual Fixed Charge* Amortisation--Depreciation period V FC Amortization and Depreciation .... < Y + 1 Annual Fixed Charges: Annual Maintenance Cod* Replacement or servicing of air filters___ Painting for corrosion protection or other Annual Maintenance Cost-- Annual Service Cod Electric power costs 1 ^ *,*,. PiITT)F" '*^j __ ^ r' . c , Da* " ^ a,>nn ...__ HC ^l i*oo Steam Foi Ventilation j>ic.he te . . . . i . . . Sewers Charges for discharging water into pub-. Annual Service Costs.* Summary Anm.ol V Annuo! Q* r-H *o Ann* 1 q " * p| Annual Owning and Operating Costs-- Total........................................................................... 729: Table 4 .... Approximate Combined Operating and Maintenance Cost for Large Air-Conditioning Installations, Using High-Quality Equipment* Dollar* per (Tan) (Toad Painting (Water boxes and debumidifiers).. Filters, clean and re-oil 4 times per year.. * Fe'i-n-*--1 fox 1959. 1.07 0.40 . 0.11 0.45 1.50 1.38 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. Insurance Insurance against losses by fire is ordinarily secured by increasing the building fire insurance coverage to 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 organiza tions specializing in this work. Exact figures on insurance cannot be determined without consultation with the owner's underwriter. Rent If the equipment under consideration is to be located in rented or leased quarters, or if additional space must be rented, such expense becomes a fixed charge. MAINTENANCE COSTS Maintenance charges consist of expense for labor and material necessary to make repairs and replace parts, as well as cleaning, painting, inspection, etc., for the purpose of eliminating or minimising the need for repairs. Generally, routine maintenance labor requirements will be the function of an operating engineer or staff. If the responsibility, of this group may extend to other facilities beyond the equip ment being discussed, here, it is important that only an equitable share of the group's time be charged to main tenance. 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 maintenance is handled by. outride service firms and the