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Simplified approaches for initial assessment of cost efficiency

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Normally, for initial prestudies a detailed assessment of cost-effectiveness of investments are not necessary. Several simplified approaches allow a reliable conclusion at least in those cases, when the results clearly tend either to "cost efficient" or to "not cost efficient".

The following tools for simplified approaches are presented under this menu item:

Based on empiric studies, the probable costs of typical measures can be expressed as a cost function using suitable parameters, e. g. the costs of a thermal insulation of an exterior wall dependent of the intended heat transmission coefficient.

Based on the methods “equivalent energy price”, “Annuity” and “Amortisation period”, a transparent MS Excel-based calculation tool was developed for this purpose and is available for free download.

Screenshots with results of the calculation tool are displayed and discussed under the menu item “Examples of modernisation”.

Several institutions offer on their websites modernisation guides that – among other features – help to assess the cost effectiveness of modernisation measures. In the background, these tools also use simplified approaches, but their mode of function and the reliability of results are not always transparent. Three guides that are usable free of charge are presented here.

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