iis discount rate
The above equation assumes that payments occur at the beginning of each year, start immediately, and have a constant rate of capital over the project construction duration. Estimating present value of ongoing costs (maintenance and other life-cycle costs) uses a similar equation which takes into account the costs starting in the future period after the construction is completed. The following equation thus assumes that payments occur at the beginning of the year, start after the project is complete, and have a constant rate of capital until the end of the project life.
where
is the annual ongoing cost over the project life ($)
The present value of the total cost associated with any project is the sum of the present value of project capital cost and the present value of project ongoing costs.
Table 8 shows the inputs for a sample of projects from the Northern Virginia district. The inputs include the project ID number, the jurisdiction and the project construction cost.
is the annual ongoing cost over the project life ($)