This
example shows, how the comparison between
the two options "With Modernization“
and "No Modernization“ leads
to the net benefit of the Modernization. |
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As
the project takes place in an existing
and operating plant, it is important
to include all effects of the downtime
period as well as the price for the
project itself. |
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Spemann
PG-ROI automatically considers
all aspects that result from higher
output, higher efficiency, more operating
hours and even the increase of technical
lifetime. |
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The
basic configuration and the market conditions
(fuel price and electricity price) are
known, no credit is drawn for financing
the 10 m Euro. |
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Is
this project beneficial?
PG-ROI uses the method of Delta Investment,
which is the direct comparison between two
options: by subtracting the cash-flow of the
second option from the cash-flow of the first
option, Spemann PG-ROI automatically generates
the Delta cash-flow which represents the benefit
of the modernization itself. |
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