HOMER Knowledge Base

HOMER Knowledge Base

Annualized operating cost

In the Cost Summary window if I choose Annualized, I don't know how the program calculates the values of each component, because of what I understand on the Net present it's the situation of the project at the end of it's lifetime. And if I try to divide this per year it's not that sum that appears in the table for each component.
 

You can calculate the annualized value of any net present value by multiplying by the capital recovery factor.  Please look up “capital recovery factor” in the help file.  The operating cost is the total annualized cost minus the total annualized capital cost.