3 Aug 2023 09:08:10 - Dredging Operational Value.

sm

Given:
6
Purchasing_Cost 50 10
ia 6.25 % (interest rate from Bangko Sentral)

n 20 yr (lifespan of equipment)

6
DDR_Cost 8 10 (estimate)

ddr 4 yr (frequency of DDR)

6
PM_Cost 2 10

pm 1 yr (frequency of PM)

6
CM_Cost 0.25 10

cm 1 yr (frequency of CM)

p 5%(percent multiplied to purchasing cost to obtain salvage value)

6
Salvage_value p Purchasing_Cost 2.5 10

L
Volume_of_fuel_per_day 15
day

hr
Operation_time_per_day 6
day

75
Unit_Cost_Fuel
L

Volume_of_fuel_per_day 22 day 12 month Operation_time_per_day Unit_Cost_Fuel

Fuel_Cost
yr
Fuel_Cost 6187.5 (per year)

Idling_days 2842

Required: What is the dredging operational value that we are losing for idling?

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 3 Aug 2023 09:08:10 - Dredging Operational Value.sm

Cash flow diagram:

Using floor function to round down values:

f x if round x , 0 x
round x , 0
else
round x , 0 1

Getting Present Values of DDR, PM, CM, and Fuel Costs:

n
f ddr
ddr i
yr 7
PVDDR DDR_Cost 1 ia 2.048 10
i 1

n
f pm
pm i
yr 7
PVPM PM_Cost 1 ia 2.2481 10
i 1

n
f cm
cm i
yr 6
PVCM CM_Cost 1 ia 2.8102 10
i 1

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 3 Aug 2023 09:08:10 - Dredging Operational Value.sm

n
f
yr
i Every year fuel is being consumed.
PVFuel Fuel_Cost 1 ia 69551.9583
i 1

Present Value of Operation nd Maintenance Expenses:

7
O_M_Cost PVDDR PVPM PVCM PVFuel 4.5841 10

Total of Present Value:

7
PVtotal Purchasing_Cost O_M_Cost 9.5841 10

Obtaining the operational value of dredging per year.

n
1 1 ia n
PVtotal Operation_Value Salvage_value 1 ia
ia

n
yr
PVtotal Salvage_value 1 ia
1
Operation_Value 8460108.01 (per year)
n yr
yr
1 1 ia
yr
ia

1 yr 1 month 1
Operation_Value_per_day Operation_Value 32045.86 (per day)
12 month 22 day day

Opportunity_Lost Operation_Value_per_day Idling_days day 91074344.57

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