SLIDE 17 Lifetime Ownership Cost & ROI & Payback
Analysis 30 years Pump Life Cycle Costs: A guide to LCC Analysis for Pumping Systems, published 2001 by Hydraulic Institute and Europump
Motor, Pump costs are presumed to be the same, and thus not compared in these calculations Analysis presumes a pre‐existing valve‐based flow control system
Initial Capital Costs Lifetime
Lifetime Lifetime
Lifetime Including purchase price, aux. services Equipment Purchase 150,000 $
‐ $ ‐ $
50,000 $
Enter cost data if new
Installation, commissioning, training Installation Costs 20,000 $
‐ $ ‐ $
10,000 $
system is to be compared
Brick/mortar mods to accommodate eqpt Construction Costs ‐ $ ‐ $ Calculated as 10% of above costs Engineering 17,000 $
‐ $ ‐ $
6,000 $ Initial inventory of spares Spare Parts ‐ $
‐ $ ‐ $
‐ $ End of life disposal (15% of Initial Cost) Decommission Cost 22,500 $
‐ $ ‐ $
7,500 $ Total Initial Cost 209,500 $
‐ $ ‐ $
73,500 $ Annual Costs Per yr. Yrs Lifetime Per yr Yrs Lifetime Per yr. Yrs Lifetime Per yr. Yrs Lifetime From System Info results x years of serviceEnergy Costs 107,675 $ 30 3,230,245 $ 124,802 $ 30 3,744,074 $ Labor for normal operation & supervision Operating Costs 1,500 $ 30 45,000 $ 1,500 $ 30 45,000 $ Routine and predicted maintenance Mainenance 2,500 $ 30 75,000 $ 1,200 $ 30 36,000 $ Total Annual Costs 111,675 $ 3,350,245 $ 127,502 $ 3,825,074 $ Recurring Costs (not annual) Per event Events Lifetime Per e Event Lifetime Per ev Events Lifetime Per event Event Lifetime Loss of production Down Time Cost ‐ $ ‐ $ ‐ $ ‐ $ Contamination from pumped liquid Environmental Cost ‐ $ ‐ $ ‐ $ ‐ $ Repairs in excess of routine maintenance Repair Cost 10,000 $ 3 30,000 $ 15,000 $ 4 60,000 $ Cost to replace failed, obsolete eqpt Eqpt Replacement 235,000 $ ‐ $ 50,000 $ 1 50,000 $ Total Life Cycle Costs 3,589,745 $ ‐ $ ‐ $ 4,008,574 $ ROI/Payback Calcs
Eddy Current Drive
Total Initial Cost (investment) 136,000 $ Initial Annual Savings (Energy, Operating, Maintenance) 15,828 $ Initial Simple payback (years) 8.6 Initial Simple Return on Investment 11.64% Life Cycle Cost Savings $418,830 Annual Return on Investment over Life Cycle (dollars) $13,961 Annual Return on Investment over Life Cycle (percent) 10.27%
Eddy Current Drive
Choose type
Throttled Valve