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http://dx.doi.org/10.3744/SNAK.2014.51.6.451

A Study on Economic Analysis of LNG Fuel Propulsion Ships using Life Cycle Cost(LCC) Based on Combined Interest Rates and Sensitivity Analysis  

Hong, Jin Pyo (Basic Technology Team, STX Offshore & Shipbuilding)
Kim, Su Yeong (Dept. of Naval Architecture & Ocean Engineering, Pusan National University)
Kim, Chwa Jin (Basic Technology Team, STX Offshore & Shipbuilding)
Publication Information
Journal of the Society of Naval Architects of Korea / v.51, no.6, 2014 , pp. 451-458 More about this Journal
Abstract
The purpose of this study is to compare the economics between a diesel propulsion vessel and a LNG fuel propulsion vessel through the analysis of the present value using the LCC(Life Cycle Cost) method. This study is also to judge the economics for long-term operation of a LNG fuel propulsion vessel as a result of analysis about the equivalent uniform annual cost. In particular, LCC method was strengthened by sensitivity analysis based on combined interest rate which is considering discount rate and inflation rate simultaneously.
Keywords
Combined interest rates; Life Cycle Cost(LCC); Discount rate; Inflation rate; Present worth method; Equivalent uniform annual cost method; Sensitivity analysis; LNG fuel propulsion; HFO fuel propulsion;
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