m4w said:
blr_p: Why don't you add a chart which plots prices with EER values. That will be a cost/performance analysis - you can use a scatter chart.
I'm not sure as yet how linear this relationship is, you would think better the EER better the performance, but there can be exceptions TCO wise.
m4w said:
And back to the TCO Analysis, what's the hold-up? Let's publish a version now and you can add the hours/city factor in later.
Holdup ?
Is there a definitive answer on whether to use monthly compounding or annual compounding for PV's ?
...as Monthly compounding gives a higher PV than annual, the spreadsheets above use annual compounding.
how important/relevant is the difference ?
any accountants here care to share some insight ?
cos best answer i currently have to that question is, the above linked spreadsheets use annual compounding!
The other point to clarify is 8% is used in the calcs, what does that 8% refer to ?
inflation? nominal interest rate ? real interest rate ? nominal discount rate ? real discount rate ?
I saw a formula that states
nominal interest rate = real interest rate + inflation
From what i can gather this whole PV stuff is based on what money you could fetch in the future if you invested it. So, to add costs over a period, future money is discounted to present. Well, no bank i'm aware of offers monthly compunding or annual compunding instead they do quarterly compounding, for domestic deposits.
I also started the
hours thread to get an idea of general use, was thinking of 3 bands 3 -6 -10 months annual use etc. that way user selects which band they are in and we can forget city
Table will prolly get done at the week-end by which time more ppl can challenge the approach