Payback time

Care must be taken when using the concept of payback time to compare 

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Payback time. Payback time is the time that elapses from the start of the project. A, to the break-even point, F. The shorter the payback time, the more attractive is the project. 

The point at which the cumulative cash flow turns positive indicates the payout time (or payback time). This is the length of time required to receive accumulated net revenues equal to the investment. This indicator says nothing about the cash flow after the payback time and does not consider the total profitability of the investment opportunity. 

Each investment metric has strengths and limitations. For example, the simple payback time indicates the time required to recover the investment, hut it ignores any benefits that may occur after the payback time, so measures offering many years of benefits appear no better than short-lived ones. A common drawback of these investment metrics is that the price of energy must be assumed. If the energy price changes, then the payback time must be recalculated. 

During the implementation of the improvement, money is spent, and debt is incurred, offset by operating margin as it improves. Interest is paid at intervals on the outstanding balance, and after a suitable payback time—which is shorter, the better the improvement—all the debt is recovered, and a better operation is running. This graph then gives three crucial pieces of information, viz. (a) the maximum risk in the form of new... 

A further benefit is that this treatment makes the uncertainties more explicit. If the payback time is five years, then it is clear that the calculated benefit hangs on estimates of markets, costs, and prices up to five years ahead the shorter the interval, the less the uncertainty. In troubled economic times, short payback strategies may be deliberately sought. 

It is difficult to manage the problem of high sludge production in lower pressure boilers where precipitation programs, especially carbonate conditioning, are used because it has a knock-on effect resulting in condensate line corrosion. The answer is always to install a water softener. The payback time is very short because of the reduced BD necessary as a result of decreased sludge production. 

The maintenance cost for the system has been budgeted to 3,200 Euro/year, and the energy cost for running the pumps in the system approx. 6,800 Euro/year. The calculated savings based on these figures are 15,000 Euro/year. This will result in a straight payback time of some 10 years. 

A number of different open pond snow and ice storage techniques have been suggested. In Ottawa a storage for 90,000 m3 of snow in an abandoned rock quarry (120 x 80 x 9.5 m3, L x W x H), was studied. The mean cooling load was 7,000 kW. A light colored PE plastic tarpaulin was suggested as insulation, with melt water re-circulation for cold extraction. The estimated payback time was 10 years (Morofsky, 1981). 

At this moment, the price of the used granular PCM exceeds 10 EURO/kg due to the test production stage. Our calculation showed the cost payback time can be less than 10 years when the PCM cost would be reduced to 4 EURO/kg under the electrical utility rate condition in Japan. Further cost reduction will be needed to promote the actual system. In addition we have to care of flammability of paraffin wax as PCM in use of inside the buildings. Fortunately, PCM is placed under the OA floor board made of fireproof cement-mortal and above the concrete slab in this system. It may not have any problems under the Fire Defense Law in Japan. However, further development of noninflammable PCM granules, for example micro encapsulation of mixture of inorganic and organic PCM, is required. 

Table 28.14 shows the opportunities for pollution prevention that the U.S. EPA recommended for the plant.12 The opportunity, the type of waste, the possible waste reduction and associated savings, and the implementation cost along with the simple payback time are given in the table. The quantities of waste currently generated by the plant and possible waste reduction depend on the production level of the plant. All values should be considered in that context. 

Payback time Payback time is the time that elapses from the start of the project (A in Figure 2.2) to the breakeven point (F in Figure 2.2). The shorter the payback time, the more attractive is the project. Payback time is often calculated as the time to recoup the capital investment based on the mean annual cash flow. In retrofit, payback time is usually calculated as the time to recoup the retrofit capital investment from the mean annual improvement in operating costs. 

There are no electrolyzers developed specifically for operation with wind turbines. However, the rapid response of electrochemical systems to power variations makes them suitable "loads" for wind turbines. Industrial electrolyzers are designed for continuous operation, mainly because their elevated investment cost requires high-capacity factors for reasonable payback times, but they are subject to a considerable number of current interruptions through their lifetime due to occasional power interruptions, accidental trips of safety systems, and planned stops for maintenance. Current interruptions are more frequent in specialty applications, where electrolyzers supply hydrogen "on demand." Therefore, the discontinuous use of the equipment is not new, and most commercial electrolyzers may be used in intermittent operation although a significant performance decrease is expected with time. In fact, it is not power variation, but current interruptions that may cause severe corrosion problems to the electrodes, if the latter are not protected by the application of a polarization current when idle. 

Paul traps, 15 662 Pauson-Khand reaction, 16 72 Pavements, insulated, 23 405 Paving, 19 494 epoxy, 10 453 Payback time (PT), 9 546 Paylean, 13 2... 

An economic benefit can occur through the retrofitting of a catalytic reactor, designed to perform partial destruction of the hypochlorite, into a plant already equipped with a chemical treatment system. The savings in chemicals consumption can more than offset the capital investment associated with the catalytic reactor and purchase of the initial catalyst charge. At high feed concentrations, say above a few weight per cent, the payback time can in fact be less than six months. 

The installed capital cost for these systems is about 500/kW. High efficiency, low cost and low maintenance allow these back-pressure installations to have payback times of two or three years. 

Costs of electricity (LRMC-payback time 15 years) ( /MWh)... 

Figure 5.17. Long-run marginal generation costs (for the year 2005) for various RES-E options in EU countries - based on a default payback time of 15 years (left) and by setting payback time equal to lifetime (right).

The new diverter was built according to the description presented in Section 13.1, and it was installed in the extruder. Immediately upon startup of the machine, resin flow from the vent did not occur. Thus, resin that expanded outside of the barrel cylinder at the entry of the vent opening was tucked back into the barrel cylinder. Based on the cost savings for the elimination of the vent flow and the installed cost of the diverter, the payback time was estimated at 18 days. 

Finally, as with any new product, dedicated recycling processes need to be developed, both for recycling during production and for end-of-life recycling. Although the energy payback time is already favorable, a further reduction to less than 6 months is possible. 

The energy intensity of the processes contributes to the energy payback time of modules. Current silicon feedstock production is energy intensive, around ISOkWhkg . Together with the low silicon utilization, this leads to a module energy payback time between 1.5 and 4 years, which, although much shorter than the module lifetime, needs to decrease. 

Small business association Debt Longest payback time Complex and competitive process... 

A simple graph of net cash flow out of, or in to, the project s account illustrates the way in which the cumulative net cash flow moves over the lifetime of the project, and enables the payback time to be easily seen, as in Figure 3. The payback time may be expressed as less than 3 years , or more precisely, such as 2.4 years or 2 years 5 months. 

In general, the lower the payback time for any project, the more profitable it is likely to be, but as a complete indicator, this method fails to allow for the different patterns of payments and revenues. 

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