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Spemann PG-ROI Examples

 

 

 

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PG-ROI EXAMPLE 2
Analysis of a Modernization
Base Case Assumptions
 
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This example shows, how the comparison between the two options "With Modernization“ and "No Modernization“ leads to the net benefit of the Modernization.
 
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.
 
Spemann PG-ROI automatically considers all aspects that result from higher output, higher efficiency, more operating hours and even the increase of technical lifetime.
 
The basic configuration and the market conditions (fuel price and electricity price) are known, no credit is drawn for financing the 10 m Euro.
 
 
 
 
 
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.