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 Incineration and landfill o Composite: 550 SEK/t · 698 t


 Revenues for scrap [15]


o Steel: - 100 US$/t · (1175 t + 485 t) - 1000 US$/t · 162 t


o Aluminium: - 100 US$/t · 380 t - 1000 US$/t · 783 t


o Composite: - 100 US$/t · 380 t


10. SUMMATION OF COSTS AT CURRENT PRICES


The relevant comparison of all cost elements is presented above, where the time value of money is taken into account. Figure 5 gives a first overview of the cost split- up into the three life cycle phases is given, using costs at their current prices.


100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0


50.0


-50.0 0.0


According to the time value of money, all future costs (considering inflation) need to be discounted back to a base period using the interest rate. Naturally, the first costs to appear are the planning and design costs. These are said to be spread over the first year. Next, the production costs will follow during the second year. After these two years all initial costs are spent and the annual costs for the following 25 years are operation and maintenance costs. While the operation is assumed to be steady the necessary expenditures for maintenance are a function of time. They increase linearly from year 17 until year 27 (year 15 until year 25 of operation). Since maintenance takes place yearly in January, it is left out in the first year of operation. With the termination of the operational life of the ship, disposal costs will appear, again within one year. The base period is set to the beginning of the first year. This schematic distribution of costs is illustrated in the following figure 6.


0.0


352.8 273.0 254.7


Disposal Operation and maintenance Production Planning and design


69.0 6.3 -0.3 Steel -0.9 Aluminium Composite Figure 5. Accumulation of costs, at current prices


69.1 6.4


74.2 6.0


Operation and maintenance


0


1217 3 Figure 6. Schematic distribution of LCC


27 28


Year


©2008: Royal Institution of Naval Architects


B-7


Annual costs Base periode Planning and design Production Operation


MEuro


Disposal


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