Question

how to calculate the life cycle cost for fuel cells for 10 years.

= installation cost + fuel cost

I need the equations and some explanations. I will rate for sure as long as you make good efforts.

Thank you.

Answer 1

Life cycle cost (LCC) of vehicle is an estimate that includes

1. The initial investment cost (purchasing & registration cost) (A)

2. Yearly operating cost and residual value of the vehicle (B)

3. Residual value of the vehicle (C)

Total cost of Vehicle over its life time = A + P*B – Q*C

Where,

P = annual interest / annual operating cost for “n” years (including the interest at a given time)

Q = annual interest / residual value of the vehicle after n years (including the interest at a given time)

The annual operating cost includes annual fuel cost, annual tax , annual maintenance cost and annual insurance cost incurred during the vehicle’s life time.

The annual energy cost is calculated by considering total driving distance per year, fuel price and fuel consumption rate as follows:

Annual energy cost = total driving distance *fuel price / average consumption rate