Levelized production cost: An alternative form of discounted cash flow analysis

• Published in: Cost engineering (Morgantown, W. Va.) Vol. 36; no. 8; p. 13
• Main Author: Brown, Daryl R
• Format: Journal Article
• Language: English
• Published: Morgantown American Association of Cost Engineers 01.08.1994
• Subjects: 296000 > Energy Planning & Policy > Electric Power; Budgets; CALCULATION METHODS; Capital budgeting; Capital expenditures; Cash flow forecasting; Consumption; COST; Cost engineering; Discount rates; Discounted cash flow; ECONOMICS; ELECTRIC UTILITIES; ELECTRICITY; ENERGY PLANNING, POLICY AND ECONOMY; Expected values; Guidelines; Income taxes; Internal rate of return; INVESTMENT; Methods; Net present value; Payback method; PRODUCTION; Production costs; PROFITS; PUBLIC UTILITIES 290201 > Energy Planning & Policy > Economics > (1992-); United States > US

Levelized production cost (LPC) is an alternative form of discounted cash flow analysis that expresses the annual cost of an investment per unit of production. The LPC defines the price that would have to be charged per unit of production to achieve a net present value of zero for an investment. The...