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Calculation of LCC: System Description

The document compares the life cycle costs (LCC) of two alternatives (A and B) over a 10 year period. It provides input parameters like initial investment, energy costs, maintenance costs, etc. and calculates the net present LCC values of both alternatives. Alternative A has a net present LCC of €105,061 with energy costs accounting for 82% of the total and routine maintenance making up 4%. Alternative B has a lower net present LCC of €93,237 with energy costs being 80% of the total and routine maintenance also at 4%.

Uploaded by

Jorge Mártires
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© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
91 views

Calculation of LCC: System Description

The document compares the life cycle costs (LCC) of two alternatives (A and B) over a 10 year period. It provides input parameters like initial investment, energy costs, maintenance costs, etc. and calculates the net present LCC values of both alternatives. Alternative A has a net present LCC of €105,061 with energy costs accounting for 82% of the total and routine maintenance making up 4%. Alternative B has a lower net present LCC of €93,237 with energy costs being 80% of the total and routine maintenance also at 4%.

Uploaded by

Jorge Mártires
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Calculation of LCC

System description
Options A and B

All cost in Euro/USD


Alt. A

Alt. B

5000

4800

- Energy price (present) per kWh:

0.08

0.08

- Weighted average power of equipment in kW:

23.1

20

- Average Operating hours/year:

6000

6000

11088

9600

- Maintenance cost (routine maintenance/year):

500

500

- Repair cost every 2nd year:

2500

2500

- Other yearly costs:

- Down time cost/year:

- Environmental cost:

- Decommissioning/disposal cost:

n - Life in years:

10

10

i - Interest rate, %:

10%

10%

p - Inflation rate %:

5%

5%

105061

93237

of which net present energy cost is:

86617

74993

and routine maintenance cost is:

3906

3906

of which net present energy cost % is:


and routine maintenance cost % is:

82%
4%

80%
4%

Input:
- Initial investment cost:
- Installation and commissioning cost:

Energy cost/year (calculated) = Energy price x


Weighted average power x Average Operating
hours/year
- Operating cost/year:

Output:
Net present LCC-value:

Calculation Chart for LCC


Year No
- Initial investment cost:
-Installation and commissioning cost:

0
5000
0

-Energy cost/year (calculated)


-Routine Maintenance
-Repair cost every 2nd year
-Operating costs
-Other costs
-Downtime costs

11642
525

12836
579

0
0

16382
739
3694
0
0

17201
776

0
0

14859
670
3350
0
0

15602
704

0
0

13478
608
3039
0
0

14151
638

0
0

12225
551
2756
0
0

0
0

- Decommissioning costs
-Environmental & Disposal costs
-Sum costs

5000

12167

15532

13415

17124

14790

18879

16305

20814

17977

-Present Costs
Present costs Energy
Present costs Routine Maintenance

5000

11061

12836

10079

11696

9183

10657

8367

9710

7624

10584
477

10103
456

9644
435

9205
415

8787
396

8388
378

8006
361

7642
345

7295
329

Sum of Present costs


Sum of Energy costs
Sum of Routine maintenance costs

100341143.xls.ms_office/LCC result-1

105061
86617
3906

6/13/2012

10

18061
814
4072
0
0
0
0
0
22948
8847
6963
314

100341143.xls.ms_office/LCC result-1

6/13/2012

100341143.xls.ms_office/LCC result-1

6/13/2012

Calculation Chart for LCC


Year No
- Initial investment cost:
-Installation and commissioning cost:

0
4800
0

-Energy cost/year (calculated)


-Routine Maintenance
-Repair cost every 2nd year
-Operating costs
-Other costs
-Downtime costs

10080
525

11113
579

0
0

14184
739
3694
0
0

14893
776

0
0

12865
670
3350
0
0

13508
704

0
0

11669
608
3039
0
0

12252
638

0
0

10584
551
2756
0
0

0
0

- Decommissioning costs
-Environmental & Disposal costs
-Sum costs

4800

10605

13892

11692

15315

12890

16885

14212

18616

15668

-Present Costs
Present costs Energy
Present costs Routine Maintenance

4800

9641

11481

8784

10461

8004

9531

7293

8684

6645

9164
477

8747
456

8350
435

7970
415

7608
396

7262
378

6932
361

6617
345

6316
329

Sum of Present costs

93237
74993
3906

Sum of Energy costs


Sum of Routine maintenance costs

10

15637
814
4072
0
0
0
0
0
20524
7913
6029
314

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