9.9. Summary

In this chapter, the basics of economic analysis required to evaluate project profitability were covered. The material presented in this chapter is founded on the principle that

Money + Time = More Money

To benefit from this principle, it is necessary to have resources to make an investment and the time to allow the investment to grow. When this principle is applied to chemical processes, the revenue or additional money is generated when low-value materials and services are converted into high-value materials and services.

A central concept identified as the time value of money grows out of this principle. This principle is applied to a wide range of applications, from personal financial management to the analysis of new chemical plants.