scholarly journals Analysis of different impact rates on the forecasts cost of building project using sensitivity analysis techniques

2021 ◽  
Vol 4 (1) ◽  
pp. 040-051
Author(s):  
Godwin Adie Akeke ◽  
Melody Sunday Osok
Keyword(s):  
Sensitivity Analysis ◽  
Life Cycle ◽  
Discount Rate ◽  
Life Cycle Cost ◽  
Net Present Value ◽  
Discount Rates ◽  
Discounted Cost ◽  
Analysis Techniques ◽  
Initial Cost ◽  
Building Project

Over the years, Life Cycle Costing (LCC) has been recognized and used as an important technique for evaluating, forecasting and discounting the future costs of building to the present day value, from conception, design to completion, operation, maintenance, down to decommissioning. This work presents a study of Analysis on different discount rate of the forecasts cost of building project using sensitivity analysis techniques, the case study being Calabar International Conference Center (CICC) building project. Life cycle cost analysis was conducted and forecast for 51 years using Net present value (NPV) with the following discount rates 4%, 5%, 6%, 8%, 10%, 12% and 13% respectively. Results showed that the lower the discount rates, the higher the cost value and via vasa. The building had a positive value >0 indicating a significant benefit at the end of the study period. The percentage contribution of the discount rate on the initial cost, salvage value and the life cycle cost indicates that at 4% the initial cost accounted for 85% of the discounted cost, life cycle cost 13% and salvage value 2%. The salvage value recorded 0% at 12% and 13% discount rate The higher the discount rates the higher the discounted initial cost and the lower the life cycle cost.

scholarly journals Life-Cycle Break-Even Analysis of Electric Carsharing: A Comparative Study in China

2020 ◽  
Vol 12 (16) ◽  
pp. 6584
Author(s):  
Jingjing Jia ◽  
Shujie Ma ◽  
Yixi Xue ◽  
Deyang Kong
Keyword(s):  
Sensitivity Analysis ◽  
Life Cycle ◽  
Life Cycle Cost ◽  
Net Present Value ◽  
Market Price ◽  
Critical Factor ◽  
Field Investigation ◽  
Related Factors ◽  
Business To Consumer ◽  
Influential Variable

Electric carsharing (ECS) is a potential option to address the problem of unsustainability in the transportation sector. The business-to-consumer model of ECS, which is one of several different electric carsharing models, has gained much popularity in recent years. Generating sufficient revenue to cover costs is a critical factor for ECS companies to maintain healthy development. This study makes an economic analysis, on the basis of life-cycle cost and monetary revenue associated with the operation of ECS, of two Chinese ECS companies: EVCARD and LCCS. Based on data gathered by field investigation, this study aims to determine the break-even moment for each company’s main vehicle models by means of the net present value method. The results show that EVCARD achieved an earlier break-even moment than LCCS. The break-even moment of Chery eQ of EVCARD was the shortest of all the vehicle models, at only 181.3 min. Moreover, a sensitivity analysis was conducted to portray how different cost-related and revenue-related factors influence the break-even moment. Our findings indicate that a wide difference exists in terms of the influence of different factors on the break-even moment. Among these, the manufacturer’s suggested retail price is the most influential variable, followed by the unit rental price. The reaction of the break-even moment to the market price of a charging pile and the non-rental revenue per vehicle—especially the latter—was found to be negligible in the sensitivity analysis.

scholarly journals Least Cost Analysis of Energy Efficiency Upgrades for Ontario Using Trnsys

2021 ◽  
Author(s):  
Amir Fereidouni Kondri
Keyword(s):  
Life Cycle ◽  
Energy Consumption ◽  
Cost Analysis ◽  
Energy Efficient ◽  
Life Cycle Cost ◽  
Net Present Value ◽  
Hot Water ◽  
Life Cycle Costs ◽  
Residential Housing ◽  
Domestic Hot Water

This report presents the methodology for determining least cost energy efficient upgrade solutions in new residential housing using brute force sequential search (BFSS) method for integration into the reference house to reduce energy consumption while minimizing the net present value (NPV) of life cycle costs. The results showed that, based on the life cycle cost analysis of 30 years, the optimal upgrades resulted in the average of 19.25% (case 1), 31% (case 2a), and 21% (case 2b) reduction in annual energy consumption. Economic conditions affect the sequencing of the upgrades. In this respect the preferred upgrades to be performed in order are; domestic hot water heating, above grade wall insulation, cooling systems, ceiling insulation, floor insulation, heat recovery ventilator, basement slab insulation and below grade wall insulation. When the gas commodity pricing becomes high, the more energy efficient upgrades for domestic hot water (DHW) get selected at a cost premium.

Life Cycle Cost Analysis Case Study on Corrosion Remedial Measures for Concrete Structures

2012 ◽  
Author(s):  
Jin How Ho ◽  
Azlan Abd. Rahman
Keyword(s):  
Life Cycle ◽  
Cost Analysis ◽  
Life Cycle Cost ◽  
Net Present Value ◽  
Cost Effective ◽  
Concrete Bridges ◽  
Analysis Tool ◽  
Life Cycle Cost Analysis ◽  
Remedial Measures ◽  
Present Value

Artikel ini membincangkan kajian ringkas berkaitan analisis kos kitaran hayat terhadap langkah-langkah pembaikan pengaratan bagi jambatan dan struktur marin konkrit yang terdedah kepada karbonasi atau serangan natrium klorida daripada air laut atau sumber-sumber lain. Perisian kos kitaran hayat, Bridge LCC 2.0 digunakan untuk menjalankan analisi kitaran hayat untuk tiga kes kajian melibatkan kaedah nilai bersih kini. Keputusan kajian menunjukkan analisis kos kitaran hayat berkeupayaan untuk membantu jurutera dan agensi pengangkutan dalam menilai keputusan penyelenggaraan yang efektif berkaitan dengan masalah pengaratan. Ia boleh digunakan sebagai alat analisis ekonomi kejuruteraan yang membantu mantaksir kos-kos perbezaan dan membuat pilihan terhadap langkah pembaikan pengaratan yang berkesan. Analisis kos kitaran hayat bagi langkah pembaikan dipengaruhi oleh banyak pemboleh ubah seperti kos permulaan, kos penyelenggaraan, tahun kekerapan, dan jangka masa analisis. Amalan terbaik untuk analisis kos kitaran hayat bukan sahaja mengambil kira perbelanjaan oleh agensi, tetapi perlu mempertimbangkan kos-kos oleh pengguna dan analisis sensitiviti di sepanjang jangka hayat sesuatu langkah pembaikan. Kata kunci: Analisis kos kitaran hayat, jambatan konkrit, pengaratan, langkah, pembaikan, pemulihan struktur, keberkesanan kos, kaedah nilai bersih kini (NPV) This paper discusses a short study on life cycle cost analysis (LCCA) on corrosion remedial measures for concrete bridges and marine structures, which are subjected to carbonation or ingress of sodium chloride from sea water and other sources. Life cycle costing software, Bridge LCC 2.0, was used to perform life cycle cost analyses on three case studies, based on net present value method. The analysis of the results showed that LCCA is capable of assisting engineers or transportation agencies to evaluate optimum maintenance decisions in corrosion–related problems. It can be used as an engineering economic analysis tool that helps in qualifying the differential costs and choosing the most cost–effective corrosion remedial measures. Life cycle costs for the remedial measures are influenced by many costing variables such as initial costs, periodic maintenance costs, frequency years and analysis period. The best practice of LCCA should not only consider agency expenditures but also user costs and sensitivity analysis throughout the service life of a remedial measure. Key words: Life cycle analysis, concrete bridges, corrosion, remedial measures, structural rehabilitation, cost-effective, net present value method (NPV)

A Life Cycle Cost Analysis Approach for Selection of a Typical Heavy Usage Multistage Centrifugal Pump

2006 ◽  
Author(s):  
Laxman Y. Waghmode ◽  
Ravindra S. Birajdar ◽  
Shridhar G. Joshi
Keyword(s):  
Life Cycle ◽  
Cost Analysis ◽  
Centrifugal Pump ◽  
Life Cycle Cost ◽  
Lifetime Cost ◽  
Maintenance Cost ◽  
Life Cycle Costs ◽  
Life Cycle Cost Analysis ◽  
Initial Cost ◽  
Multistage Centrifugal Pump

It is well known that the pumps are the largest consumers of industrial motor energy and account for more than 25% of electricity consumption. The life cycle cost of a pump is the total lifetime cost associated with procurement, installation, operation, maintenance and its disposal. For majority of heavy usage pumps, the lifetime energy and/or maintenance cost will dominate the life cycle costs. Hence a greater understanding of all the cost components making up the total life cycle costs should provide an opportunity to achieve a substantial savings in energy and maintenance costs. This will further enable optimizing pumping system efficiency and improving pump and system reliability. Therefore in this context, the life cycle cost analysis of heavy usage pumps is quite important. This paper focuses on an application of a methodology of determining the life cycle cost of a typical heavy usage multistage centrifugal pump. In this case, all the cost components associated with the pump-set have been determined and classified under different categories. The data with regard to initial investment costs, operation costs, maintenance and repair costs and disposal costs for the pump considered for this case study was collected from the concerned pump manufacturer along with the unit cost of each component, quantity used and their weights. By applying the principles of reliability and maintainability engineering and using the data obtained from the design, manufacturing and maintenance departments, the component-wise values of MTBF (Mean Time Between Failures) and MTTR (Mean Time To Repair) were estimated. The results of the life cycle cost analysis of the specimen pump were compared with the life cycle costs of similar pumps reported in the literature. From this comparison of results, it can be concluded that, the initial cost of the pump is the only a fraction of the total life cycle cost. The operating cost of the pump dominates the life cycle costs especially in case of heavy usage pumps. The maintenance cost varies approximately from 0.6 to 2.5 times the initial cost of the pump. The life cycle cost of the pump varies approximately from 12 to 33 times the initial cost of the pump. The operation and maintenance cost is almost 92 to 97 per cent of the life cycle cost. The detailed analysis carried out in this paper is expected to provide guidelines to the pump manufactures/practicing engineers in selecting a heavy usage multistage centrifugal pump based on the total lifetime cost rather than only on initial price.

A Method of Evaluating Life Cycle Costs of Industrial Gas Turbines

1989 ◽  
Vol 111 (4) ◽  
pp. 637-641
Author(s):  
R. B. Spector
Keyword(s):  
Life Cycle ◽  
Gas Turbines ◽  
Life Cycle Analysis ◽  
Life Cycle Cost ◽  
Life Cycle Costs ◽  
Initial Cost ◽  
Relative Value ◽  
Industrial Gas Turbines ◽  
Combined Cycles ◽  
New Criterion

When aeroderivative gas turbines were first introduced into industrial service, the prime criterion for assessing the “relative value” of equipment was derived by dividing the initial (or capital) cost of the equipment by the number of kilowatts produced. The use of “dollars per kilowatt” as an assessment parameter emanated from the utility sector and is still valid providing that the turbomachinery units under consideration possess similar performance features with regard to thermal efficiency. Second-generation gas turbines being produced today possess thermal efficiencies approximately 45 percent greater than those previously available. Thus, a new criterion is required to provide the purchaser with a better “value” perspective to differentiate the various types of turbomachinery under consideration. This paper presents a technique for combining the initial cost of equipment with the costs of fuel consumed, applied labor, and parts to arrive at an assessment parameter capable of comparing the relative merits of varying types of turbomachinery. For simplicity, this paper limits the life cycle cost derivation and discussion to turbogenerator units; however, the principles of this type of life cycle analysis can also be applied to gas turbines in mechanical drive applications and/or combined cycles.

Life cycle cost and sensitivity analysis of palm biodiesel production

Fuel ◽  
2012 ◽  
Vol 98 ◽  
pp. 131-139 ◽  
Author(s):  
H.C. Ong ◽  
T.M.I. Mahlia ◽  
H.H. Masjuki ◽  
Damon Honnery
Keyword(s):  
Sensitivity Analysis ◽  
Life Cycle ◽  
Life Cycle Cost ◽  
Biodiesel Production

Economics of chemical brush control in pastures of east-central Saskatchewan

1991 ◽  
Vol 71 (4) ◽  
pp. 1133-1141
Author(s):  
R. P. Zentner ◽  
G. G. Bowes
Keyword(s):  
Discount Rate ◽  
Populus Tremuloides ◽  
Net Present Value ◽  
Dry Weight ◽  
Control Treatment ◽  
Discount Rates ◽  
Economic Returns ◽  
East Central ◽  
Brush Control ◽  
Growing Conditions

The economic merit of controlling brush regrowth using combinations of 2,4-D and dicamba with different patterns of repeat applications was assessed for pastures in east-central Saskatchewan. Two experiments were conducted simultaneously in a community pasture located on a Waitville loam. The area, which was originally dominated by aspen poplar (Populus tremuloides Michx.), had been cleared of trees and shrubs by bulldozing before the start of the tests. In the first experiment started in 1981, 2,4-D ester plus dicamba and 2,4-D amine plus dicamba were foliar applied to the brush regrowth. Single applications were compared with repeat sprayings in the first, second, or in both years following the initial herbicide application. A subset of these treatments was used in a second experiment started in 1983 to determine whether or not productivity effects were influenced by growing conditions in the initial year of spraying. Herbicides effectively controlled brush regrowth which increased yields of useable herbage (grasses plus forbs) by an average of 32–39%. The forage benefits did not decline with time to the end of the study in 1989. Herbicide treatments were generally more profitable when applied to younger stands of brush regrowth, with the 2,4-D ester formulations being more profitable than 2,4-D amine formulations. Economic returns were highest, although not always positive, for the treatment receiving a one-time application of 2-4-D ester at 2.2 kg ha−1 plus dicamba at 1.5 kg ha−1 for forage values between $25 and $75 t−1 (dry weight) and discount rates between 0 and 10%. In order to justify this treatment cost, the minimum value that must be obtained when utilizing the additional forage was $20 t−1 (dry weight) for the most profitable control treatment, assuming a 5% discount rate and persistance of the treatment effects for up to 18 yr. For the other treatments, breakeven forage values ranged between $37 and 70 t−1 under similar assumptions. Higher discount rates or a shorter effective treatment life increased breakeven forage values. Repeat herbicide applications could not be justified under any of the economic scenarios. Key words: Net present value, benefit-cost ratios, discount rate, aspen poplar, herbicides, 2,4-D

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