Document Xzd2gr5DN3Z86K1wYY9Q7XrvJ

860 CHAPTER 79 1962 Guide And Data Book Table 1 .... Cost Dollars per Ton for a Complete System, Including Heating and Cooling Coils, Fan, Ducts, Refrigeration' Equipment, Temperature Controls, etc.* 2 3 4 56 7 Unif Co*f Tote/ Coitj* Refriger* atioa Floor Arao Sq Ft Air Distrib uted Cfo RefrigeraNon Equip ment per Ton Ovch Fora, Heat mg Cods, etc. psr C(m Refrigera tion Equip- Air HanEqaiptoent 8 - Total 9 10 11 12 13 Unit Cor#** Per Too Per Sq Ft Floor Per ' Cftn Evaporative Condenser* For Ton Coofag Temreis FerTotf 25 50 75 100 150 200 250 300 400 500 - 8,333 16,666 25,000 33,332 50,000 66,664 83,333 100,000 133,328 166,666 12,500 25,000 37,500 50,000 75,000 100,000 125,000 150,000 200,000 250,000 270 242 229 220 211 207 202 197 178 171 1.13 1.06 1.03 0.99 0.98 0.97 0.95 0.93 0.91 0.89 6,750 12,100 17,175 22,000 31,650 41,400 50,500 59,100 71,200 85,500 14,125 26,500 38,625 49,500 73,500 97,000 118,750 139,500 182,000 222,500 20,875 38,600 55,800 71,500 105,150 138,400 169,250 197,600 253,200 308,000 835 772 744 715 701 692 677 658 633 616 2.50 2.32 2.23 2.14 2.10 2.08 2.03 1.98 1.90 1.85 1.67 1.54 1.49 1.43 1.40 1.38 1.35 1.32 1.27 1.23 205 167 130 97. 65 60 5* 52 50 48 46 44 * These cost figures (bind on 1961 price* which may be adjusted by pains current twildinc cost index) cover only the average type at comfort air conditiouBi in "rw" spaces as in department storaa. or for industrial air conditioning involving targe areas. Where a multiplicity of small spaces most be individually eontrciled, si . in office buddings, hotels, and apartment bouses, these ooeta do not apply. * includes only final water, drain, and dteUusl connections within the equipment room. b Columns 9.10, and II represent costa where well water or city water is available for ooadensiag purposes. Where conservation of water a required, add ootuma 13 or 13 to column 9 to obtain total coat per ton. * Does not include cost of structural reinforcing if required, to support tha weight of moling towers or evaporative condensers. 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 depredation 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* 1. Heat Producing Equipment (a) Boilers.................................... (b) Stokers and burners............ 2. Heat Distributing Equipment () Piping--copper............ ................... () Piping--iron........................................ (c) Radiation--concealed........................ (d) Radiation--direct...:........................ () Valves.................................................. (f) Specialties........................................... 20 20 same as bldg. 20 25 25 20 10 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 property chargeable to the operation of the system. 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 charged the cost of that part of an existing property which is removed 3. Air Handling Equipment (al Filters--automatic.............................. 0>) Heating and cooling coils........... (c) Spray humidifiers and dehumidifiers. (d) Fans....... (e) Air-conditioning units'...................... (J) Motors.............................. ,.................. (a) Electrical starting equipment. . (k) Pneumatic control systems.............. () Electric control systems!.................. 20 20 10 15 10 20 20 20 20 4. Aib Distributing Equipment (a) Ductwork.............................. . (b) Outlets, grilles...-................. (c) Duct insulation.................... same as bldg. 20 20 5. Refrigerating Equipment (a) Centrifugal refrigerating machines.. (5) Reciprocating refrigerating ma chines.................................................... (e) Motors and starters......... ........... (d) Piping--copper............................ (e) Piping--steel....................................... (/) Pumps................................................... 20 20 20 20 20 20 6. Water Saving Devices () Evaporative condensers. () Cooling towers................ (c) Wells................................ 15 15 25 * Ttken from U. fi. Bnnso of lateral! Bsvenas finStfm W, Table* cf Us&d Lim* / Depreciable Propert*. V-- Table 3 .... Owning and Operating Cost " -t First Cost * *i r ^First Cost (FC)--Total......................... '-1 ` Annual Fixed Charges ^iortization--Depreciation period Y ^xnortixfltion and Depreciation -y- -------.. Y+ 1 Insurance......................................................... Annual Fixed Charges: - Annual Maintenance Costs Replacement or servicing of air filters___ Lubricating oil and grease........................... Pointing for corrosion protection or other mnof rtf __ rtsWa __rT'l'"' . ' r 1 Annual Maintenance Cost-- Total...................................................... Amid Service Cost Electric power costs Steam For v" ^ For AKsrtrpt'rt A , ................ Sewers Charges for discharging water into pub- Annual Service Costs: Sinamery Annual Owning and Operating Costs-- Total......... ................................... 861 or destroyed and rebuilt to install the air-conditioning system as this cost does not result in an improved value of the struct ture. Insurance Insurance against losses by fire i3 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 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, 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 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 charged to maintenance. Extraordinary repairs are quite often handled by separate maintenance divisions and the expense charged back to air ramHitinning, heating, and ventilating. In other cases, all irraintpnanne is handled by outside service firms and the cost considered as maintenance. These costs vary con siderably with factors such as the type of system and the proficiency of the installing and servicing organization. Therefore, any forecast of maintenance costs should include consideration of the equipment as a part of the engineering study. The charges should be based upon the entire period under study rather than the early years of operation when repairs may be expected to be at a minimum. The accounting practices of the owner and the rules of the Bureau of Interna] Revenue affect the charges for major overhauling or complete replacement which may restore the capital value of certain equipment items. In these cases the expenditure may not necessarily be charged as maintenance but will become a fixed charge spread over the remaining years of equipment life. Table 4 gives some approximate costs for maintaining large air-conditioning installations using high-quality equipment. LABOR FOR OPERATION In some cases with the installation of automatic equij>_ ment, operating labor may be non-existent, but where' such labor is required, the cost is readily calculated. Where opera tors are - required, the expense is often considered main tenance, but since they may have other functions that are not properly charged to operation of the air-conditioning, heating, or ventilating installations, the charges should be properly allocated. The cost of experienced and competent