Nuclear Engineering and Technology

Korean Nuclear Society (한국원자력학회)
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Advanced Depreciation Cost Analysis for a Commercial Pyroprocess Facility in Korea

  • Kim, Sungki (Korea Atomic Energy Research Institute) ;
  • Ko, Wonil (Korea Atomic Energy Research Institute) ;
  • Youn, Saerom (University of Science and Technology) ;
  • Gao, Ruxing (University of Science and Technology) ;
  • Chung, Yanghon (Korea Advanced Institute of Science and Technology, Department of Business and Technology Management) ;
  • Bang, Sungsig (Korea Advanced Institute of Science and Technology, Department of Business and Technology Management)
  • Received : 2015.08.24
  • Accepted : 2016.01.11
  • Published : 2016.06.25
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Abstract

The purpose of this study is to present a rational depreciation method for a pyroprocess cost calculation. Toward this end, the so-called advanced decelerated depreciation method (ADDM) was developed that complements the limitations of the existing depreciation methods such as the straight-line method and fixed percentage of declining-balance method. ADDM was used to show the trend of the direct material cost and direct labor cost compared to the straight-line or fixed percentage of the declining-balance methods that are often used today. As a result, it was demonstrated that the depreciation cost of the ADDM, which assumed a pyroprocess facility's life period to be 40 years with a deceleration rate of 5%, takes up 4.14% and 27.74% of the pyroprocess unit cost ($781/kg heavy metal) in the $1^{st}$ and final years, respectively. In other words, it was found that the ADDM can cost the pyroprocess facility's capital investment rationally every year. Finally, ADDM's validity was verified by confirming that the sum of the depreciation cost by year, and the sum of the purchasing cost of the building and equipment, are the same.

Keywords

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