InputVariable Variable Description

I% interest rateN number of yearsP cost of the system at time 0S salvage valuetX operating expenses

OutputResult Description

P_n capital recover factor, P/AF_n compound amount factor, P/FA_n capital recovery factor, A/P

Absolute value of First Term refer to generalized equationAbsolute value of Second Term refer to generalized equationAbsolute value of Third Term refer to generalized equationAbsolute value of Forth Term refer to generalized equation

PW Present worth, NPVA Annual Cost

Assumptions and notes1)Method of Straight Line Depreciation is assumed2) Initial project expense at time zero required3) Coatings and other repetitive maintenance measures have no salvage value4) Influence of taxes, operating expenses, salvage value and straight -line depreciation are taken in to account5) Operating expenses such as touch-ups,maintenance are expressed in annual terms in the equation. If these operating expenses occur at other periods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

tax rate expressed as a decimal

Unit User Input% 10.0%

years 15$ $4.88$ $0.00

0.48$

Output Value7.60614.17720.1315

$4.88$1.19$0.00$0.00-$3.69-$0.49

3) Coatings and other repetitive maintenance measures have no salvage value4) Influence of taxes, operating expenses, salvage value and straight -line depreciation are taken in to account5) Operating expenses such as touch-ups,maintenance are expressed in annual terms in the equation. If these operating expenses occur at other periods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

Scenario 1Input

Input variableI%NPStX

OutputOutput variable

P_nF_nA_n

Absolute value of First TermAbsolute value of Second TermAbsolute value of Third TermAbsolute value of Forth Term

PWA

Assumptions based on scenarios

Scenario 1 Assumptions

General Conclusion

Scenario 11

Variable Description Unit User Inputinterest rate % 10.0%

number of years years 15cost of the system at time 0 $ $4.88

salvage value $ $0.000.48

operating expenses $

Description Unit Output Valuecapital recover factor, P/A 7.6061

compound amount factor, P/F 4.1772capital recovery factor, A/P 0.1315

refer to generalized equation $ $4.88refer to generalized equation $ $1.19refer to generalized equation $ $0.00refer to generalized equation $ $0.00

Present worth, NPV for Scenario 1 $ -$3.69Annual Cost for Scenario 1 $ -$0.49

Assumptions based on scenarios

Scenario 1 Assumptions

-$0.49 -$0.49

tax rate expressed as a decimal

General Conclusion

Scenario 2Input

Input variableI%NPStX

OutputOutput variable

P_nF_nA_n

Absolute value of First TermAbsolute value of Second TermAbsolute value of Third TermAbsolute value of Forth Term

PWA

Assumptions based on scenarios

Scenario 2 Assumptions

General Conclusion

Scenario 2

Variable Description Unitinterest rate %

number of years yearscost of the system at time 0 $

salvage value $

operating expenses $

Description Unitcapital recover factor, P/A

compound amount factor, P/Fcapital recovery factor, A/P

refer to generalized equation $refer to generalized equation $refer to generalized equation $refer to generalized equation $

Present worth, NPV for Scenario 2 $Annual Cost for Scenario 2 $

Assumptions based on scenarios

Scenario 2 Assumptions

tax rate expressed as a decimal

General Conclusion

Scenario 2 Scenario 32 Input

User Input Input variable10.0% I%

15 N$4.88 P$0.00 S0.48 t

X

OutputOutput Value Output variable

7.6061 P_n4.1772 F_n0.1315 A_n

$4.88 Absolute value of First Term$1.19 Absolute value of Second Term$0.00 Absolute value of Third Term$0.00 Absolute value of Forth Term-$3.69 PW-$0.49 A

Assumptions based on scenarios

Scenario 2 Assumptions Scenario 3 Assumptions

General Conclusion

Scenario 3

Variable Description Unitinterest rate %

number of years yearscost of the system at time 0 $

salvage value $

operating expenses $

Description Unitcapital recover factor, P/A

compound amount factor, P/Fcapital recovery factor, A/P

refer to generalized equation $refer to generalized equation $refer to generalized equation $refer to generalized equation $

Present worth, NPV fro Scenario 3 $Annual Cost for Scenario 3 $

Assumptions based on scenarios

Scenario 3 Assumptions

tax rate expressed as a decimal

General Conclusion

Scenario 33 Assumptions and notes ( for all cases)

User Input 1)Method of Straight Line Depreciation is assumed10.0% 2) Initial project expense at time zero required

15 3) Coatings and other repetitive maintenance measures have no salvage value$4.88 4) Influence of taxes, operating expenses, salvage value and straight -line depreciation are taken in to account$0.00 5) Operating expenses such as touch-ups,maintenance are expressed in annual terms in the equation. 0.48 If these operating expenses occur at other periods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

Output Value7.60614.17720.1315

$4.88$1.19$0.00$0.00-$3.69-$0.49

Assumptions based on scenarios

Scenario 3 Assumptions

General Conclusion

3) Coatings and other repetitive maintenance measures have no salvage value4) Influence of taxes, operating expenses, salvage value and straight -line depreciation are taken in to account5) Operating expenses such as touch-ups,maintenance are expressed in annual terms in the equation. If these operating expenses occur at other periods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

If these operating expenses occur at other periods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

NPV CalculationNPV Calculation (2)