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Decreasing Opex in cashflow table


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Hey Dev Team,

The cashflow table shows that the opex is gradually decresing over a span of 20 years for the system. From my experience companies and customers sign a fixed cost maintenance contract, don' they?

Also, generally speaking, more maintenance is required as the system gets older which means opex increases with time which contradicts what is shown in cashflow. could you please explain ?

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Hello Vishnu,

I guess it has to do with the annual average return on capital employed. Per default it is set to  a value of 1 %. You can find it in the general parameters of the financial analysis. It represent the inflation of the money during the assessment period. So, every money value in the cash flow table is lowered by this percentage value per year, starting in the first year.

Best regards

Sixten

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