MIL-HDBK-1004/10
Alternative 2
Discount
Discounted
Project
Cost
Amount
Year(s)
Element
One-Time
Recurring
Factor
Cost
0-14
none
15
Repair leaks
,000
0.251
,510
16
Repair leaks
10,000
0.228
2,280
17
Repair leaks
20,000
0.208
4,160
18
Repair leaks
20,000
0.189
3,780
19
Repair leaks
30,000
0.172
5,160
20
Repair leaks
,000
0.156
,680
21
Repair leaks
40,000
0.142
5,680
22
Repair leaks
50,000
0.129
6,450
23
Repair leaks
60,000
0.117
7,020
24
Repair leaks
70,000
0.107
7,490
25
Repair leaks
90,000
0.097
8,730
Total Net Present Value:
,940
13.7.5
Compare Benefits and Costs
a) Alternative 1 - Net present value = ,338
b) Alternative 2 - Net present value = ,940
Alternative 1, continued cathodic protection, suggests the least life-cycle
cost proposal.
Economic Analysis Goal. The goal of the economic process is to
13.8
provide quantitative information in an unbiased manner and to provide the
decision-maker with relevant information. Adhering to the six-step economic
process will meet this goal.
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