Depreciation Methods and Life-cycle Costing (LCC) Methodology

Liapis, Konstantinos; Kantianis, Dimitrios D.

doi:10.1016/s2212-5671(15)00032-5

Cited by 33 publications

(23 citation statements)

References 4 publications

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“…As with the "average use life method", the average use life of copper contained products in the year t is set to Δt, according to the Gaussian distribution; the depreciation span of these products should be 2Δt. We use the straight-line method (SLM) in this paper, also known as the fixed installment method [22], the annual rate of depreciation is 1/2Δt. So the depreciated copper in-use stock (S t D ) in the year t can be calculated in Equation (3):…”

Section: Analysis Methods Of In-use Stockmentioning

confidence: 99%

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Wang¹,

Liang²,

Wu³

et al. 2017

Preprint

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Section: Analysis Methods Of In-use Stockmentioning

confidence: 99%

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Wang¹,

Liang²,

Wu³

et al. 2017

Preprint

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“…Fixed assets, they are known as tangible assets or property, they comprise many items such as land, buildings, plants, machinery and so on. It used in accounting for assets and property that cannot easily be converted into cash [21,22]. Depreciation is, simply say, the expense generated by the uses of an asset, and it is the wear and tear of an asset or diminution in the historical value owing to usage [16].…”

Section: Analysis Methods Of In-use Stockmentioning

confidence: 99%

Section: Analysis Methods Of In-use Stockmentioning

confidence: 99%

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Wang¹,

Liang²,

Chen³

et al. 2017

Preprint

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With the increasing of copper consumption, the in-use stock of copper tends to increase. This paper used the "average use life method" to quantify the amount of copper in-use stock, and calculated the average age of in-use stock. It was indicated that the total in-use stock had an overall smooth trends, and reached its peak in 2007 was about 68.9 Mt (million tons), in addition, in-use stock per capita reached its peak, 234 kg/capita in 2001. The results demonstrated that during the period 1992-2002, the average age of copper in-use stock was continually decreased, but gradually increased since the year 2003. The fixed assets depreciation method used in this paper is applied to analyze depreciated copper in-use stock, and to analyze the relationship with economic indicator (GDP). It was demonstrated that it was inconsistent with the theory of Environmental Kuznets Curve (EKC) before 2000, this might be the demand for copper in the service sector is greater than the reduced strength of alternatives. Finally, scenario analysis of future copper in-use stock and depreciated copper in-use stock per capita in the U.S. were presented. The corresponding average age of the in-use stock will have a slight rise in the next decade.

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“…• Initial investment costs C I , assumed at the year 0, which include acquiring an installing cost calculated using the price lists of companies [50]; • Annual running and replacement costs during the holding period (30 years), which include inspection, maintenance and periodic replacement of the technical components, calculated as a percentage on the investment costs with specific frequency, as indicated in literature [51] (see Table 6); • Residual value of technical components, calculated by applying the residual technical life to total technical life ratio, to the replacement costs [52][53][54]; • Dismantling cost, calculated using Piedmont regional price list [55]; • Disposal cost, which include possible incomes from recycled materials (glass, timber and aluminum), calculated using price lists of disposal companies; in this case aluminum frames was considered partially recyclable, thus reducing respective disposal costs; • Period of analysis, considered of 30 years, a time required to renew and retrofit the building for example due to new energy regulations in the construction sector. The timespan is longer than the lifespan of the assets analyzed (lifespan of window = 25 years), which allows to expect an asset residual value; • Financial data, including the lifespan for the calculation, which corresponds to the economic life of the building subject of this study, and the discount rate, set as a function of the specific investment risk and the loan costs; as a consequence, the Net Present Value (NPV) is calculated with respect to the starting year τ 0 considering the costs for a lifespan of 30 years, with a discount rate of 1.39% stated according to EURIRS 30th.…”

Section: Phase 2-economic Indicators With Lcc Analysismentioning

confidence: 99%

Economic-Environmental Indicators to Support Investment Decisions: A Focus on the Buildings’ End-of-Life Stage

et al. 2017

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Abstract:The aim of this paper is to propose a methodology for supporting decision making in design activities; in case of new projects or retrofitting of existing buildings. A multidisciplinary approach is adopted; involving Real Estate Appraisal and Economic Evaluation of Project and Building Environmental Design. It is proposed a methodology for selecting the preferable solutions among technological options; considering both economic and environmental aspects; in terms of global performance. Assuming the principles of Life Cycle Thinking and Circular Economy focus is posed at the end-of-life stage. Attention is paid on disposal costs and residual value as relevant items enable to orient investment decisions. This is done through an approach for quantifying environmental indicators related to Life Cycle Assessment (Standard ISO 14040:2006); and economic indicators adopting the Life Cycle Costing (Standard ISO 15686:2008). The paper proposes a conjoint "economic-environmental indicator". An application of Global Cost calculation is illustrated; including monetized environmental impacts (Embodied energy and Embodied carbon); disposal/dismantling costs and residual value. The result of the Global Cost calculation is expressed through a "synthetic economic-environmental indicator" in order to select; between two different technologies; the most viable solution for a multifunctional building glass façade project; in Northern Italy. The study demonstrates that the initial investment decisions depend on the design solutions; since the early stages; related to the whole building life cycle considering conjointly the construction-management phases and the end-of-life stage.

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Depreciation Methods and Life-cycle Costing (LCC) Methodology

Cited by 33 publications

References 4 publications

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Analysis of the Quantity and Average Age of Copper in-Use Stock in the U.S. from 1985 to 2014

Economic-Environmental Indicators to Support Investment Decisions: A Focus on the Buildings’ End-of-Life Stage

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