We propose a mixed-integer nonlinear programming (MINLP) model for simultaneous chemical process and heat exchanger network synthesis. The model allows process stream inlet/outlet temperatures and flow rates to vary and can be extended to handle unclassified streams, thereby facilitating integration with a process synthesis model. The proposed model is based on a generalized transshipment approach in which the heat cascade is built upon a "dynamic" temperature grid. Both hot and cold streams can cascade heat so that exchanger inlet and outlet temperature, heat duty, and area can be calculated at each temperature interval. We develop mixed-integer constraints to model the number of heat exchangers in the network. Finally, we present several solution strategies tailored to improve the computation performance of the proposed models.