APOSTOLOS TSIRIVIS 3/24/2016

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In the training exercises it is mentioned that Capital cost annualization should be set to Capital recovery factor Default, while in the LEAPs user guide regarding setting up optimization it is mentioned that it shouls be set to No Annualization. So which of the two advices should be followed?What is the difference between them?

Taylor Binnington 3/24/2016
 

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Sorry, Apostolos,

The cost annualization method should be "Cost Recovery Factor". The different options are very briefly described here:

http://www.energycommunity.org/WebHelpPro/Supporting_Screens/Basic_Parameters_Screen.htm

The Cost Recovery Factor method uses a standard payment calculation with interest, described here:

https://en.wikipedia.org/wiki/Capital_recovery_factor

"No annualization" does not annualize costs at all.

Best,
Taylor