Life cycle cost of biomass power plant: Monte Carlo simulation of investment
Assessment of life cycle cost is considered as an important instrument for designing and evaluating success of every project. The aim of this work is to determine the precise impact of the investment costs and future operating and maintenance costs of CHP biomass plant. By using the Monte Carlo simu...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt
2017-01-01
|
| Series: | Ekonomika Poljoprivrede (1979) |
| Subjects: | |
| Online Access: | http://scindeks-clanci.ceon.rs/data/pdf/0352-3462/2017/0352-34621702587O.pdf |
| Summary: | Assessment of life cycle cost is considered as an important instrument for designing and evaluating success of every project. The aim of this work is to determine the precise impact of the investment costs and future operating and maintenance costs of CHP biomass plant. By using the Monte Carlo simulation are determined variations in the settings and the possible impact on the investment risk. The results show that the investment is justified, thanks to the positive outcome of the net present value (NPV), internal rate of return (IRR) and the payback period. The greatest impact on the variability of annual profits have operating costs, which have the highest coefficient of variation of 6.44% and the largest share. Variability of net present value of 4% is acceptable, and the investment is considered as stable. |
|---|---|
| ISSN: | 0352-3462 2334-8453 |