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Comparison of Life Cycle Cost Analysis for Water Treatment Plant by Net Present Value method and Equivalent Annual Cost Method

Publication Date : 03/05/2016

Author(s) :

H.P. Ambre , P.D Aher , A.B. Saner .

Conference Name :
International Conference on Recent Trends in Engineering and Technology

Abstract :

Life Cycle Costing (LCC) is a valuable technique which is used for predicting and assessing the cost performance of the assets. In this paper LCC of Water Treatment Plant is carried out using Net Present Value Method (NPV) and Equivalent Annual Cost (EAC) Method. The comparison between the results obtained through each method is shown and the advantages and disadvantages of both methods are studied. Water Treatment Plants (WTPs) are the important infrastructure facilities provided in the cities. Thus evaluation of economic and financial aspects of the WTPs over its entire life span is essential to provide the municipal corporations and Government bodies to effectively and efficiently construct and run the projects. The LCC analysis carried out in this work can be used to carry out the LCC analysis of any other Water Treatment Plant in other cities and of other technologies with the modifications in the input data. The LCC analysis of 50 MLD WTP at Nilgiri bagh, Nashik is presented in this paper. The LCC of 50 MLD WTP by NPV method was found to be Rs. 54, 28, 85,657.8 and for EAC method as Rs. 3, 75, 59,970.95.

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