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Years Capital Cost (In Millions) O&M Total Cost Total Benefits Net Benefits

This document outlines the costs, benefits, and net present value of a project over 15 years. It shows that there are high capital costs of $200 million in each of the first 3 years, followed by ongoing operation and maintenance costs of $15 million per year. Benefits start at $110 million in year 4 and increase each year. Discounted cash flow and net present value calculations at 10% and 15% discount rates show the project has a positive net present value, indicating it should be undertaken.

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Saba Jogezai
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93 views

Years Capital Cost (In Millions) O&M Total Cost Total Benefits Net Benefits

This document outlines the costs, benefits, and net present value of a project over 15 years. It shows that there are high capital costs of $200 million in each of the first 3 years, followed by ongoing operation and maintenance costs of $15 million per year. Benefits start at $110 million in year 4 and increase each year. Discounted cash flow and net present value calculations at 10% and 15% discount rates show the project has a positive net present value, indicating it should be undertaken.

Uploaded by

Saba Jogezai
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Years

Total

Capital Cost (in Millions)O&M


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

200
200
200
0
0
0
0
0
0
0
0
0
0
0
0

Total Cost Total Benefits


0
0
0
15
15
15
15
15
15
15
15
15
15
15
15

200
200
200
15
15
15
15
15
15
15
15
15
15
15
15

0
0
0
110
110
126.5
126.5
126.5
126.5
126.5
145.48
145.48
145.48
145.48
145.48

Net benefits
-200
-200
-200
95
95
111.5
111.5
111.5
111.5
111.5
130.48
130.48
130.48
130.48
130.48

CDF @10%

NPV @ 10%

CDF @ 15%

NPV @ 15%

2.487

-497.4

2.28

-457

1.304

124

1.069

102

2.34

261

1.667

186

1.461

191
78.6

0.828

108.03
-60.97

TC discounted @10% TB discounted @10%TC discounted @ 15% TB dicounted @ 15%


497.4

77
575

143.44

117.6

296.01

211

212.54
452

120.5
449.1

566

53.4
619.4

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