Project lifetime

The probable life of the project will depend very much on the market place to be served by the product, but a 5-year life should be achievable, and over 10 years would normally be expected for a project of the size being considered here. 

It is necessary to select a value for the effective lifetime of a project, so that the undiscounted NPV is positive (i.e. a lifetime longer than the payback time). A value of 10 years is conventionally chosen 

An important consideration is whether or not to assign a scrap (or still-operating sale) value to the plant at the end of its economic life. Unless the plant is to be run into the ground , there is usually some scrap value, even if only from the plant buildings, which is usually calculated as a percentage of the FCI at the start, and is then included as an additional cash flow at the end of the last year of the analysis (together with the working capital). 

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Within the project box, the cashflow oi the project (or other investment opportunity) is the forecast of the funds absorbed and the money generated during the project lifetime. Take, for example, the development of an oil field as the investment opportunity. Initially the cashflow will be dominated by the capital expenditure (capex) required to design, construct and commission the hardware for the project (e.g. platform, pipeline, wells, compression facilities). 

Prevailing interest rates probably tend to reflect an estimate of future inflation and contain a component that can be attributed loosely to inflationary expectations. However, the classical treatment is to assume that an inflation-free interest rate, r and average inflation rate, r, over the project lifetime can be identified. A discount factor (1 + r) can be modified (25) so that... 

The value of NPV is directly dependent on the choice of the fractional interest rate i and project lifetime n. 

A project development team completes a multitude of tasks over the project lifetime. Some tasks are heavily dependent on others and should be serialized, perhaps using Pattern 13.3, Short-Cycle Development others are largely independent and should proceed in parallel because downstream work is dependent on them. 

Certificates issued by the British Board of Agrement (BBA) cover new or innovative construction products not covered by existing British Standards and Codes of Practice. These certificates, which are the result of assessment by BBA based on manufacturers information and on independent testing, also provide information on projected lifetimes. In future, under the European Construction Products Directive, product performance details including durability will be given on the label of each CE marked product. An example of how this is applied will be described in the next section. 

The second dye system is based on an almost clear yellow-green phthalocyanine dye. The estimated lifetime of a disc based on the phthalocyanine dye is 100 years. The third dye system is based on azo dyes. The azo dye used in the process has a deep blue color partially caused by its unique silver alloy reflective layer. Again, a projected lifetime of 100 years is cited. 

It should also be noted that database creation, modification, and use are greatly benefited by the standard methods approach described previously. This approach produces reliable data that lend themselves to a highly consistent database format throughout a project lifetime. 

In addition to the cost analysis of the system, a sensitivity analysis estimating the impact of diesel prices (0.4, 0.6 and 0.8 /L) on the final cost of energy produced by the PV-diesel system was taken over. The project lifetime used in the analysis was 16 years. 

More specifically, the system of Rauhelleren comprises a 36 kW diesel generator and a battery bank of 150 kWh. With respect to costs used in the simulation of the existing system, the capital cost of diesel generator was 450 /kW resulting in a total capital cost of 16,200 including the diesel tank. The cost of diesel fuel was set to 0.8 /L. The capital cost of the battery bank used in our calculations was 100 /kWh, therefore for the 150 kWh battery bank installed in the Rauhelleren system the total acquisition cost was 15,000 . The project lifetime was 16 years. 

Moreover, the cost of diesel fuel was considered equal to 0.8 /L and the project lifetime was 16 years. The results of the existing PV-diesel power system simulation showed that 17% of system s electricity production comes from the photovoltaic array and the remaining 83% is produced by the diesel generator. 

Fig. 4.22 A comparison of the measured lifetime of NC132 (solid line) with projected lifetimes of NT154 (dashed line). Test temperature, 1300°C. The improvement of lifetime of =5 orders of magnitude is mainly a consequence of the improved creep resistance of the NT154.

Pt, which is not trivial over the projected lifetime for a PAFC. Migration of the platinum from the cathode towards the anode is due to the platinum being deposited, not on the anode catalyst, but rather on the silicon carbide matrix, adjacent to the anode, as a consequence of the small solubility of hydrogen in solution at the electrode/matrix interface. 

The largest component of the constant C is the return on investment of the fixed capital. In order to make comparisons easier, a standardised methodology is adopted which is detailed in the Appendix. Typically process plants are assumed to take a similar (3 year) construction period to operate at full output over the project lifetime with zero residual value. The capital payback is then over this operating life. 

It is interesting to note that, in order to reach a real (DCFRR) or i of 20 percent within a reasonable project lifetime when the general inflation rate is 20 percent, it follows from Fig. 9-31 that the payback period for the project must not be much in excess of 2 years. 

We have shown that phytic acid readily hydrolyzes to produce phosphate with a projected lifetime of 100-150 years in the absence of microbiological effects, that actinide-phytate compounds are insoluble, and that europium and uranyl phytates are converted to phosphates within a month at 85 °C. Thorium solubility, on the other hand, is controlled by hydroxide or oxide species. Furthermore, the solubilities of radiotracer europium and uranyl are reduced by phosphate dosing of a simulated groundwater solution, even in the presence of citric acid. In the same systems, neptunium(V) solubility is only affected by 0.01 M phosphate at pH greater than 7. The results of these tracer-scale immobilization experiments indicate that phosphate mineral formation from representative deposits is under thermodynamic control. 

The various components of a plant such as equipment, buildings, and improvements are characterized by projected lifetimes. During this period, each item depreciates from its initial investment cost, Cp, to a salvage value, S, over the period of n years of its projected lifetime. At the end of any particular year, k, the depreciated value or book value, V is ... 

The Salvage Value (or Scrap Value). The projected salvage value of equipment at the end of the project lifetime is that portion of the fixed capital that cannot be depreciated. 

NPW is the present value of all investments and cash flows during the project lifetime. This takes into account time value of money at the expected rate of return (i year ). The expected rate of return, usually termed as the discount rate, is taken as 0.12 year NPW for the WO process is ... 

Long project lifetimes and high costs explain why the pharmaceutical industry depends on patents to protect its drugs. Patents forbid competitors to use the originators inventions. They give the greatest possible assurance... 

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