Table 5 PP computation process and its formulation 84.
Variable | Equation |
|---|---|
Salvage value | \({\text{SV = sv}}_{0} \left[ {\frac{{\mathop Z\limits^{ } _{{{\text{total}}.2019.{\text{Capital}}}} + \dot{Z}_{{{\text{WCT}}{\mathrm{ Capital}}}} }}{{{\text{CRF}}_{{{\text{Capital}}}} /{\text{NN}}}}} \right]{\text{ + SV}}_{{{\text{WT}}}} \left[ {\frac{{{\text{1 + r}}}}{{{\text{1 + i}}}}} \right]^{{\text{n}}}\) \({\text{sv}}_{{0}} { = 0}{\text{ 1}}\) |
Total capital expenditure cost | \({\text{TCE}}_{{{\text{total}}{\mathrm{ system}}}} = \left[ {\frac{{\mathop Z\limits^{ } _{{{\text{total}}.2019.{\text{Capital}}}} + \dot{Z}_{{{\text{WCT}}{\mathrm{ Capital}}}} }}{{{\text{CRF}}_{{{\text{Capital}}}} {\text{/NN}}}}} \right] \times {\text{1}}{\mathrm{ 1 + Z}}_{{{\text{WT}}}}\) |
Total depreciable expenditure | \({\text{TDE = TCE}}_{{{\text{total}}{\mathrm{ system}}}} - {\text{SV}}\) |
Present worth factor | \({\text{PWF = }}\frac{{1}}{{{\text{(1 + i)}}^{{\text{n}}} }}\) |
Present factor | \({\text{PW = TCE}}_{{{\text{total}}{\mathrm{ system}}}} {(1 - 0}{\text{ 1}} \times {\text{PWF)}}\) |
Annual capital cost | \({\text{ACC}} = {\text{PW}} \times {\text{CRF}}_{{{\text{Capital}}}}\) |
Annual book depreciation | \({\text{ABD = }}\frac{{{\text{TDE}}}}{{\text{n}}}\) |
Annual Net Cash Flow | \({\text{ANCF}} = {\text{CPW}} \times {\text{Po}}_{{{\text{us}}{\mathrm{ yearly}}}}\) |
Average annual profit | \({\text{AAP = ANCF - ABD}}\) |
Average rate of return | \({\text{ARR }} = \frac{{{\text{AAP}}}}{{\mathop C\limits^{ } _{{{\text{total}}{\mathrm{ system}}}} \times {\text{NN}}}}\) |
Detailed Payback period Ratio | \({\text{DPR}} = \frac{{{\text{TDE}}}}{{{\text{ANCF}}}}\) |
