Documente Academic
Documente Profesional
Documente Cultură
Year 1 2 3 4 5 6
O&M 4500 4800 5700 6900 8400 10200
Incremental
PW(12%) $143.04
O&M S O&M S
0 12000 35000
1 3400 7000 200 30000
2 3900 4000 1000 27000
3 4600 2500 1200 24000
4 6500 1000 1500 20000
5 2000 19000
6 2000 18000
Economic Life Analysis for the Defender
Annualized
Annualized Opportunity Cost
Year O&M Costs O&M Costs SV Annualized SV ($12,000) EUAC
1 $3,400.00 $3,400.00 7000 ($7,000.00) $13,800.00 $10,200.00
2 $3,900.00 $3,883.87 4000 ($1,860.47) $7,381.40 $9,404.80
3 $4,600.00 $4,279.08 2500 ($719.94) $5,255.72 $8,814.86
4 $6,500.00 $4,977.16 1000 ($200.27) $4,203.18 $8,980.08
5
6
Economic Life Analysis for the Challenger
Annualized Capital
Annualized Investment
Year O&M Costs O&M Costs SV Annualized SV ($35,000) EUAC
1 $200.00 200 30000 ($30,000.00) $40,250.00 $10,450.00
2 $1,000.00 $572.09 27000 ($12,558.14) $21,529.07 $9,543.02
3 $1,200.00 $752.92 24000 ($6,911.45) $15,329.19 $9,170.66
4 $1,500.00 $902.53 20000 ($4,005.31) $12,259.29 $9,156.51
5 $2,000.00 $1,065.30 19000 ($2,818.00) $10,441.04 $8,688.35
6 $2,000.00 $1,172.08 18000 ($2,056.26) $9,248.29 $8,364.11
Steps:
Planning horizon? – No planning horizon
Calculate cost at Economic Life for the defender
Economic Life Analysis for the Defender
Annualized
Annualized Annualized Opportunity
Year O&M Costs O&M Costs SV SV Cost ($5,000) EUAC
1 $1,700.00 $1,700.00 3000 $3,000.00 $5,500.00 $10,200.00
2 $2,000.00 $1,842.86 1000 $476.19 $2,880.95 $5,200.00
3 $2,500.00 $2,041.39 500 $151.06 $2,010.57 $4,203.02
EUAC(Challenger) = $3,374.18