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Economic Analysis for Plural Component

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$ASQEconomic Analysis for Plura Economic Analysis for Plural Component Proportioning System for Epoxy Paints Assumptions: Capital costs for plural component proportioning systems can range from: Systems that mix multiple materials: $50,000 to $70,000 Basic units that mix two materials: $6,000 to $7,000 Application systems are additional and their capital costs can range from: $500 to $5,000 Capital cost for example: $15,000 · Annual paint usage for hand mixing system: 4,000 · Annual solvent usage for hand mixing system: 2,250 · Annual labor required for equipment cleaning using hand mixing system: 250 · Annual solid paint waste generated using hand mixing system: 5,500 · Paint cost: $85 · Solvent cost: $7 · Labor rate: $45 · Paint solid waste disposal: $1 · Solvent waste disposal: $3 · All solvent is disposed as waste · Plural component proportioning system reduces paint usage by: 15% · Plural component proportioning system reduces solvent usage and waste by: 50% · Plural component proportioning system reduces labor usage by: 50% · Plural component proportioning system reduces paint waste by: 50% Annual Operating Cost Comparison for Plural Component Proportioning System and Hand Mixing System Plural Component Proportioning System Operational Costs: Labor: $5,625 Paint and Solvent: $296,875 Waste Disposal $6,125 Total Costs: $308,625 Total Income: $0 Annual Benefit: ($308,625) Economic Analysis Summary Annual Savings for Plural Component System: $70,625 Capital Cost for Diversion Equipment/Process: $15,000 Payback Period for Investment in Equipment/Process: 0.2 Page 1$ASQEconomic Analysis for Plura gallons gallons hours pounds /gallon /gallon /hr /pound /gallon Hand Mixing System $11,250 $355,750 $12,250 $379,250 $0 ($379,250) years Page 2
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