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LLC

Do an economic analysis if a measure is profitable.

LCC

Commonly
Discount rate r= %
Calculation period t= år
Energy price Epris= kr/kWh
Energy price development Eutv= %/år
Maintenance costs development Uutv= %/år

Existing New
Investment cost I= kkr kkr
Maintenance cost U= kkr/år kkr/år
Energy consumption E= kWh/år kWh/år
Residual value R= kkr kkr
Result
Present value I+U NVi= kkr kkr
Present value energy NVe= kkr kkr
Present value totalt NVt= kkr kkr

Explanations

Lcc

Lcc or Life Cycle Cost is a measure of how much an investment costs during its lifetime.

Discount rate

The interest rate used for investments after inflation, ie real interest rates.

Calculation period

Over what period the calculation should be made.

Energy price

Refers to the price of the energy supplied to the device.

Energy price development

Refers to how energy prices develop during the calculation period excluding inflation.

Investment cost

The cost of the current investment.

Maintenance cost

The annual cost of maintenance work that needs to be done on the appliance.

Maintenance costs development

Refers to how maintenance costs develop during the calculation period excluding inflation.

Energy consumption

The energy needed to supply the device per year.

Residual value

The value of the investment that remains after the calculation period has expired.

Present value

Present value is the estimated value of an investment's future cash flow. The investment is profitable if the present value exceeds the investment cost.

Formula

Present value: Present value