Which of the following is NOT among the three main factors determining equipment capital cost?

• A. Location of the plant
• B. Size or capacity
• C. Material of construction
• D. Operating pressure

Answer: (A)

The main concept here is understanding what directly drives equipment purchase cost. The three primary factors are the size or capacity of the equipment, the material of construction, and the design operating pressure. Size or capacity determines the overall scale of the equipment, so bigger units require more material and heavier fabrication, which dominates cost. Material of construction matters because different materials have different prices, fabrication complexities, corrosion allowances, and availability, all of which significantly influence the price. Operating pressure affects wall thickness, safety features, and required design standards, which in turn drive equipment cost.

Location of the plant affects indirect costs like shipping, handling, labor rates, and permitting, but it does not change the intrinsic cost of the equipment itself. So it is not among the main factors determining equipment capital cost.