7/27/2019 Sloane-LifeCycleCostAnalysisSample1-Barbados.xls

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General device model

Healthcare Technology Assessment

Total Cost of Ownership (TCO) Analysis

INFLATION/DEVALUATION FACTORS

Local Labor inflation factor 3.0 percent

Initial End Year One Year Two Year Three Year Four Year Five NOTES:

Value of a local dollar $1 $1.0300 $1.0609 $1.0927 $1.1255 $1.1593

Net Present Value of $1 $1 97.09% 94.26% 91.51% 88.85% 86.26%

Local Material inflation factor 7.0 percent

Initial End Year One Year Two Year Three Year Four Year Five NOTES:

Value of a local dollar $1 $1.0700 $1.1449 $1.2250 $1.3108 $1.4026

Net Present Value of $1 $1 93.46% 87.34% 81.63% 76.29% 71.30%

Imported Items inflation factor 6.0 percent

Initial End Year One Year Two Year Three Year Four Year Five

Value of a local dollar $1 $1.0600 $1.1236 $1.1910 $1.2625 $1.3382

Net Present Value of $1 $1 94.34% 89.00% 83.96% 79.21% 74.73%

Currency Devaluation Factor 10.0 percentInitial End Year One Year Two Year Three Year Four Year Five

Value of a local dollar $1 $1.1000 $1.2100 $1.3310 $1.4641 $1.6105

Net Present Value of $1 1 90.91% 82.64% 75.13% 68.30% 62.09%

Compound effect of

Imported items

Inflation and

Devaluation

1 $1.1660 $1.3596 $1.5852 $1.8484 $2.1552

Net Present Value (NPV) Factor 8.0 percent is the "cost of money," i.e., cost of loans, lost interest, etc

Initial End Year One Year Two Year Three Year Four Year FiveValue of a local dollar $1 $1.0800 $1.1664 $1.2597 $1.3605 $1.4693

Net Present Value of $1 1 92.59% 85.73% 79.38% 73.50% 68.06%

Actual Life Cycle Analysis For a Capital Purchase

Initial Year One Year Two Year Three Year Four Year Five NOTES:

Capital cost $100,000

Installation

Free installation negotiated in

advance

Repair Parts & Manuals $2,000 $4,000 $4,000 $6,000 1-year warranty

Supplies $10,000 $10,000 $12,000 $12,000 $14,000 $14,000

Assumes 20% increase in service

demands every 2 years

Test equipment $2,500

User Training

On-site 2-day class $0 $5,000 $5,000

Maintenance

Imported items (In local currency converted from US dollar. Representative categories; add more categories as needed!)

Life Cycle Cost Financial Analysis Example - using representative numbers

7/27/2019 Sloane-LifeCycleCostAnalysisSample1-Barbados.xls

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Training $3,000 $3,000 $3,000

Service Contracts $5,000

Will eliminate service contract after

training at end of year 1

Misc. repair labor (est) $500 $500 $700 $700

Imported items Annually $110,000 $23,000 $17,000 $24,500 $18,700 $23,700Total imported items

W/compounded

inflation &

devaluation $110,000 $26,818 $23,112 $38,838 $34,565 $51,079

Initial Year One Year Two Year Three Year Four Year Five NOTES:

Capital and Materials

Capital cost $10,000

Installation

Repair Parts & Manuals $200 $200 $200 $200 $200

Supplies $1,000 $1,000 $1,200 $1,200 $1,400 $1,400

Assumes 20% increase in service

demands every 2 years

Total local materials $11,000 $1,200 $1,400 $1,400 $1,600 $1,600Total local materials

w/local material

inflation factor $11,000 $1,284 $1,603 $1,715 $2,097 $2,244

Labor Factors

User Training - Labor

2 Nurses & 1 Biomed 2 days $400 $400 $400

Maintenance - Labor

Training $500 $500 $500 $500 $500 $700

Service Contracts $400

Misc. Repairs $200 $200 $300 $300 $300 $300

Total Labor $1,100 $1,500 $800 $1,200 $800 $1,000

Total Local Labor w/

Local Labor Inflationfactor $1,100 $1,545 $849 $1,311 $900 $1,159

Total Local Costs $12,100 $2,829 $2,452 $3,026 $2,998 $3,403

Total Local and

Imported Costs $122,100 $29,647 $25,564 $41,865 $37,563 $54,482

Accum. Dollars $122,100 $151,747 $177,311 $219,176 $256,738 $311,221

NPV Total Local

and Imported Costs $122,100 $27,451 $21,917 $33,234 $27,610 $37,080

TOTAL - NPV

Total Local and

Imported Costs $122,100 $149,551 $171,468 $204,702 $232,311 $269,391