NYT Printing Facility, Queens NY
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29 units • 3475T total
CapEx Deferral Analysis
Net Present Value Method
Replacement Cost$9,730,000
Deferral Period10 yrs
Discount Rate7%
PV of Deferred Cost$7,238,557
NPV of Deferral$2,491,443
The time value of pushing a $9,730,000 replacement out by 10 years at 7% cost of capital.
Capital Reserve Comparison
PV Without Treatment$191,649/yr
PV With Treatment$0/yr
Annual NPV Savings$191,649/yr
Replace Cost$9,730,000
Equipment Timeline
Install Year1996
Equipment Age30 yrs
Useful Life20 yrs
Remaining (RUL)3 yrs
Extension+10 yrs
Extended Life (EUL)13 yrs
R&M Savings
Base R&M Cost$145,950/yr
EER Improvement18.0%
Degradation (without)3.0%/yr
Degradation (with)0.25%/yr
Current R&M Savings$68,592/yr
Without treatment, R&M costs grow at 3.0%/yr due to degradation. With treatment, base R&M is reduced 18.0% and grows at only 0.25%/yr. The gap widens each year.
