A User's Manual for DELSOL3 - prod.sandia.gov - Sandia National ...

(V.B - 6)
The discount rate rDIS is the effective cost of money to the owner and includes
both debt cost and return on equity requirements according to:
rDIS = I(l.0 -- ITR) X fD X iu] + (1.0 - fD) X ROE
where fu -= debt fraction
in = debt cost (interest rate on borrowed capital)
ROE = before tax return on equity.
(Note that rDIS = ROE for fD = 0; i.e., 100% equity financed projects.)
The discount factor is:
where Yop = economic operating life of the plant (years).
(V.B - 7)
(V.B - 8)
V.B-2. Leuefized O&M Rates-The levelized O&M rates are determined from
the initial rate, O&Mi; the yearly inflation and discount rates, rinf and rDIS, re-
spectively; and the plant Operating life, Yop:
Default values are based mostly on 1984 5-year plan economics:
(V.B - 9)
iDc (AFDC) 0.0318 (assumes a 3-year construction period)
ESC (ESC) 5 0.00
NYTCON (NYTCON) = 0 (assumes plant construction begins now)
rinf (RINF) = 0.00
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