Annex C. Illustration of a penalty calculation with a gravity component

Table A C.1. Calculations based on the BEN model

Inputs

 

Initial capital investment

USD 100 000

One-time, non-depreciable expenditure

USD 80 000

Annual operating and maintenance expenditure

USD 10 000

Non-compliance date

01/06/2005

Compliance date

01/12/2008

Estimated penalty payment date

30/01/2009

Discount rate

9.1%

Outputs

Present values as of non-compliance date

Capital and one-time costs in the absence of non-compliance (A)

USD 102 091

Capital and one-time costs with delayed compliance (B)

USD 88 199

Avoided annually recurring costs (C)

USD 16 453

Economic benefit as of non-compliance date (A-B+C)

USD 30 345

Final economic benefit as of the estimated penalty payment date

USD 41 769

Source: (OECD, 2009[1]).

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