Contents - Index

P_2f

Function P_2f calculates the economic parameter P_2 for the life-cycle costing method presented in Duffie and Beckman, Solar Engineering of Thermal Processes, 5th ed., 2020, Wiley.

Inputs:
 c either 1 (for an income producing) or 0 for non-income producing investment
 d market discount rate
 DD ratio of the down payment to the first costs
 i general inflation rate
 m annual mortgage rate
 M_s ratio of maintenance, insurance, and other incidental costs in the first year to the first costs
 N number of years considered in the economic analysis
 N_L term of the mortgage
 N_D depreciation lifetime in years
 p property tax rate based on assessed value
 R_v ratio of the resale value at the end of the economic period to the first costs
 t_bar  effective income tax rate
   V ratio of assessed value in the first year to the first costs

Example:
c=0
d=0.1
DD=0.2
i=0.035
m=0.065
M_s=0.01
N=10
N_L=10
N_D=10
p=0.035
R_v=0
t_bar=0.35
V=1

P_2=P_2f(c, d, DD, i, m, M_s, N, N_L, N_D, p, R_v,  t_bar,V)

{P_2 is equal to 1.038}

See also P_1f