Page 233 - Sustainable Cities and Communities Design Handbook

Life Cycle Analysis Chapter j 10 207

Since the LRI RIM term does not have a time subscript, it can be removed
from the summation, and the formula is then:

N
E t
X
NPV RIM ¼ LRI RIM
t 1
t¼1 ð1 þ dÞ
Rearranging terms, we then get:
,
N
E t
X
LRI RIM ¼ NPV RIM
t 1
t¼1 ð1 þ dÞ
Thus,
N
E t
X
E ¼
t 1
t¼1 ð1 þ dÞ
REFERENCE

Clark II, W.W., Sowell, A., Schultz, D., 2002. Standard practice manual: the economic analysis of
demand-side programs and projects in California. International Journal of Revenue Man-
agement X.