Input

Variable
I%
N
P
S
t
X

Variable Description
interest rate
number of years
cost of the system at time 0
salvage value
tax rate expressed as a decimal
operating expenses

Output
Result
P_n
F_n
A_n
Absolute value of First Term
Absolute value of Second Term
Absolute value of Third Term
Absolute value of Forth Term
PW
A

Description
capital recover factor, P/A
compound amount factor, P/F
capital recovery factor, A/P
refer
refer
refer
refer

to generalized equation
to generalized equation
to generalized equation
to generalized equation
Present worth, NPV
Annual Cost

Assumptions and notes

1)Method of Straight Line Depreciation is assumed
2) Initial project expense at time zero required
3) Coatings and other repetitive maintenance measures have no salvage value
4) Influence of taxes, operating expenses, salvage value and straight -line depreciation are taken in to
5) 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

Unit
%
years
$
$

User Input
10.0%
15
$4.88
$0.00
0.48

Output Value
7.6061
4.1772
0.1315
$4.88
$1.19
$0.00
$0.00
-$3.69
-$0.49

vage value
t -line depreciation are taken in to account
ed in annual terms in the equation.
y will have to be expressed as an equivalent annual cost.Refer to exmaple 5

Scenario 1
Input
Input variable
I%
N
P
S
t
X

Output
Output variable
P_n
F_n
A_n
Absolute value of First Term
Absolute value of Second Term
Absolute value of Third Term
Absolute value of Forth Term
PW
A

Scenario 1 Assumptions

Scenario 1
1
Variable Description
interest rate
number of years
cost of the system at time 0
salvage value
tax rate expressed as a decimal
operating expenses

Unit
%
years
$
$

User Input
10.0%
15
$4.88
$0.00
0.48

Description
capital recover factor, P/A
compound amount factor, P/F
capital recovery factor, A/P

Unit

Output Value
7.6061
4.1772
0.1315

refer to generalized equation

refer to generalized equation
refer to generalized equation
refer to generalized equation
Present worth, NPV for Scenario 1
Annual Cost for Scenario 1

$
$
$
$
$
$

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

Scenario 1 Assumptions

-$0.49 -$0.49

Scenario 2
Input
Input variable
I%
N
P
S
t
X

Output
Output variable
P_n
F_n
A_n
Absolute value of First Term
Absolute value of Second Term
Absolute value of Third Term
Absolute value of Forth Term
PW
A
Assumptions based on scenarios

Scenario 2 Assumptions

General Conclusion

Scenario 2
Variable Description
interest rate
number of years
cost of the system at time 0
salvage value
tax rate expressed as a decimal
operating expenses

Unit
%
years
$
$

Description
capital recover factor, P/A
compound amount factor, P/F
capital recovery factor, A/P

Unit

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

General Conclusion

Scenario 3
2
User Input
10.0%
15
$4.88
$0.00
0.48

Input
Input variable
I%
N
P
S
t
X

Output
Output Value
7.6061
4.1772
0.1315

Output variable
P_n
F_n
A_n

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

Absolute value of First Term

Absolute value of Second Term
Absolute value of Third Term
Absolute value of Forth Term
PW
A

Scenario 3 Assum

Scenario 3
Variable Description
interest rate
number of years
cost of the system at time 0
salvage value
tax rate expressed as a decimal
operating expenses

Unit
%
years
$
$

Description
capital recover factor, P/A
compound amount factor, P/F
capital recovery factor, A/P

Unit

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

$
$
$
$
$
$

Scenario 3 Assumptions

3
User Input
10.0%
15
$4.88
$0.00
0.48

Output Value
7.6061
4.1772
0.1315
$4.88
$1.19
$0.00
$0.00
-$3.69
-$0.49

Assumptions and notes ( for all cases)

1)Method of Straight Line Depreciation is assumed
2) Initial project expense at time zero required
3) Coatings and other repetitive maintenance measures have no salvage v
4) Influence of taxes, operating expenses, salvage value and straight -line
5) Operating expenses such as touch-ups,maintenance are expressed in a
If these operating expenses occur at other periods than anually, they will

e measures have no salvage value

lvage value and straight -line depreciation are taken in to account
aintenance are expressed in annual terms in the equation.
eriods than anually, they will have to be expressed as an equivalent annual cost.Refer to exmaple 5

o exmaple 5