MIL-HDBK-1004/10
Alternative 3
Discount
Discounted
Project
Cost
Amount
Year(s)
Element
One-Time
Recurring
Factor
Cost
0
Installation
6,000
1.000
6,000
1-25
Repair leaks
,000
9.524
114,288
Total Net Present Value Costs:
0,288
Benefits. A significant benefit of utilizing cathodic protection
13.4.4.4
is that, at the end of the economic life of the structure, the structure
remains in functional condition and can be maintained in that condition
essentially indefinitely at low cost.
13.4.5
Compare Costs/Benefits
a)
Alternative 1 - Net present value = 4,764
b)
Alternative 2 - Net present value = 1,022
c)
Alternative 3 - Net present value = 0,288
Alternative 2, steel line with cathodic protection, suggests the least life-
cycle cost proposal.
13.5
Economic Analysis - Example 2
13.5.1
Objective.
Install a fuel pipeline, 8 inches in diameter and
15,000 feet long.
13.5.2
Alternative
a)
Steel line without cathodic protection.
b)
Steel line with cathodic protection.
13.5.3
Assumptions
a) The soil resistivity is equal to 5,000 ohm-cm, pH 6, which is a
moderately aggressive corrosion environment.
b) The economic life of a fuel pipeline is 25 years. It is
assumed that no salvage value will be remitted in year 25 unless total
replacement is cost justified at that point in time.
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