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NPV Analysis

Net present value (NPV) analysis is based on Australian water utilities process to determine the value of a liner based on the service life predicted from the long-term lined pipe analysis. Users will need to enter their own discount rate and initial cost (this can be implemented from the preliminary cost estimation).

Pipe Parameters
Pipe length: The length of the pipeline or pipe length. Units are in m.
Accepted Values: 0 ≤ Lp ≤ 10000 m
(Click to see User Manual - Pipe failure analysis for more information)
Years of analysis: The amount of years to examine the NPV calculations for.
Accepted Values: 0 to 100 years

(Click to see User Manual - Lined pipe analysis for more information)
Discount rate: The interest rate used to determine the present value of the liner/replacement option.
Accepted Values: 0 to 100 %

(Click to see User Manual - Lined pipe analysis for more information)
Inflation rate - Cost: The rate at which the prices increase over time, resulting in the lower purchasing value of money.
Accepted Values: 0 to 100 %

(Click to see User Manual - Lined pipe analysis for more information)
Option A: Replace
Cost of replace option: The cost to replace the pipe using a traditional replacement method. Units are in $/m.
Accepted Values: 0 < $/m

(Click to see User Manual - Lined pipe analysis for more information)
New replacement pipe lifetime: The expected life of a new replacement pipe asset, e.g. 50 years. Units are in years.
Accepted Values: 0 < Years

(Click to see User Manual - Lined pipe analysis for more information)
Miscellaneous replace cost Miscellaneous costs involved for a pipe replacement option, e.g. maintenance, failures, leak repairs, etc. Units are $/year.
Accepted Values: 0 < $/y

(Click to see User Manual - Lined pipe analysis for more information)
Option B: Rehabilitate with Liner
Cost of liner: The initial cost to rehabilitate the pipe using a liner method such as CIPP or spray. Units are in $/m.
Accepted Values: 0 < $/m

(Click to see User Manual - Lined pipe analysis for more information)
Liner lifetime : The service life of the liner, e.g. 50 years. Calculated from long-term analysis using information from the lined pipe composite. Units are in years.
Accepted Values: 0 < years

(Click to see User Manual - Lined pipe analysis for more information)
Miscellaneous liner cost : Miscellaneous costs involved for a liner rehabilitation option, e.g. maintenance, failures, leak repairs, etc. Units are $/year.
Accepted Values: 0 < $/y

(Click to see User Manual - Lined pipe analysis for more information)
Option C: Do Nothing
Repair/maintenance cost per failure : The average repair/maintenance cost per failure in the pipe using the do nothing approach. Units are in $.
Accepted Values: 0 < Cost

(Click to see User Manual - Lined pipe analysis for more information)
Estimated number of failures per year / 100 km : The estimated number of failures per year/100 km. This value can be gathered from Water utilities data analysis. Units are in failures/y/100 km.
Accepted Values: 0 < Failures/y/100 km

(Click to see User Manual - Lined pipe analysis for more information)
NPV Graph

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