Beware Capital Charge Rates

Name: Beware Capital Charge Rates
Creator: Hoff Stauffer
Keywords: 0211 other engineering and technologies, 0202 electrical engineering, electronic engineering, information engineering, 02 engineering and technology

Hoff Stauffer

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The Electricity Jour...arrow_drop_down

The Electricity Journal

Article . 2006 . Peer-reviewed

License: Elsevier TDM

Data sources: Crossref

https://dx.doi.org/10.1016/j.t...

Article

Data sources: Microsoft Academic Graph

Beware Capital Charge Rates

descriptionPublicationkeyboard_double_arrow_right Article 01 Apr 2006 English Publisher:Elsevier BVJournal:The Electricity Journal, volume 19, pages 81-86 (issn: 1040-6190,

Copyright policy )

Authors: Hoff Stauffer;

doi: 10.1016/j.tej.2006.03.004

Beware Capital Charge Rates

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Abstract

The capital charge rate has a material effect in cost comparisons. Care should be taken to calculate it correctly and use it properly. The most common mistake is to use a nominal, rather than real, capital charge rate. To make matters worse, the common short-cut formula does not work well.

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