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Technologies and Costs for Removal of Arsenic From Drinking Water

Technologies and Costs for Removal of Arsenic From Drinking Water

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Amortization, or capital recovery, factors <strong>for</strong> interest rates <strong>of</strong> 3, 7, <strong>and</strong> 10 percent <strong>for</strong> 20 yearsare reported in Table 3-10. Alternative capital recovery factors can be calculated using the <strong>for</strong>mulapresented below.Capital Recovery Factor =(1 + i) N((1 + i) N - 1)/i)Where:i = interest rateN = number <strong>of</strong> yearsTable 3-10Amortization FactorsInterest Rate (%) Amortization Period AmortizationFactor3 20 0.06721577 20 0.094392910 20 0.11745963.2.5 Re-Basing Bureau <strong>of</strong> Labor Statistics Cost IndicesThe <strong>Water</strong> Model <strong>and</strong> W/W Cost Model uses BLS cost index in<strong>for</strong>mation based in 1967dollars. In 1986, the BLS conducted a comprehensive overhaul <strong>of</strong> the industrial price methodologyresulting in a re-basing <strong>of</strong> all index in<strong>for</strong>mation to a base year <strong>of</strong> 1982 (i.e., 1982=100). The BLSindex in<strong>for</strong>mation must be re-based to 1967 to use the indices in the models. A sample re-basecalculation is presented below.Sample Re-base Calculation:Machinery =1982 Base Factor / Re-base Factor = 1967 Base Factor= 146.4 / 0.32895016 = 445.13-11

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