Report - PEER - University of California, Berkeley

esearch revenue using the basic procedures outlined in the previous sections. Asillustrated in Figure 3, the evaluation suggested that the unbonded brace systemwould reduce annual losses due to earthquakes by $139K. Using a discount rate of5%, the net present value of this reduction over the life of the building was calculatedas $2.5M or more than twice the extra cost (see Figure 4). The equivalent return oninvestment using the unbonded braces in place of the conventionally braced framewas estimated at approximately 11%. As shown in Figure 5, the analysis suggestedthat the investment would theoretically pay for itself in approximately 15 years, farless than the 50 year projected lifetime.UC Berkeley – Stanley Hall$139K reduction in expected annual losses for unbondedbraces compared to conventional system$400$300$207($,000)$200$113$100$188$143$0SCBFUBB(conventional braces) (unbonded braces)Capital/ContentsBusiness InterruptionFigure 3. Reduction in expected annual earthquake losses attributable to the useof unbonded braces in place of conventional braces.UC Berkeley – Stanley Hall$2.5M reduction in the present value of expected losses forunbonded braces compared to conventional system(assuming 5% discount rate)($,000,000)$8.0$6.0$4.0$3.8$2.1$2.0$3.4$2.6$0.0SCBFUBB(conventional braces) (unbonded braces)Capital/ContentsBusiness InterruptionFigure 4. Reduction in the net present value of expected earthquake lossesattributable to the use of unbonded braces in place of conventional braces.108