Cost Analysis of Energy

UNIT 3 COST ANALYSIS OF ENERGY Savings

SAVINGS

Structure
3.1 Introduction
Objectives
3.2 Simple Payback Period
3.3 Present Worth Method
3.4 Life Cycle Cost Analysis
3.4.1 Life Cycle Cost (LCC)
3.4.2 Present Value (Present Worth)
3.5 Annual Life Cycle Cost with Inflation
3.6 Life Cycle Cost of Renewable Energy Systems
3.6.1 Solar PV Power
3.6.2 Biogas Power
3.6.3 Wind Energy System
3.7 Let Us Sum Up
3.8 Key Words

3.1 INTRODUCTION
Many, if not all conservation measures require some investment. You have learnt
about a range of conservation measures which need some kind of investment in
procuring equipments/energy efficient devices, etc. You need to know whether
the investments you have recommended are worth considering or not, from the
economic point of view. This is done by analysing the cost of investment and the
resultant saving over a period of time, usually the life of the equipment. Such an
economic analysis should consider all the economic parameters like interest rate,
inflation rate, salvage value, etc. You will learn about such analyses in this Unit.
The following are some of the methods for analysing the economics of
energy conservation measures :
Life-cycle Cost (LCC) : This is an equivalence method by putting all the
costs, present and future, of the alternative systems on the common basis
of present worth or present value so that an equitable comparison can be
made.
Life-cycle Savings (LCS) : This evaluates the difference between two
alternative systems. The alternative that saves the most in terms of the
total life-cycle savings will be the most favorable one.
Payback Time : This is defined as the amount of time required for the
cumulated savings to equal the initial investment in an energy
conservation exercise.
Objectives
After studying this unit, you will be able to
· Understand various terms used in the economic analysis of energy
conservation measures,
43
Energy Planning and
Management · Understand simple payback period and its method of calculation,
· Understand net present value method,
· Understand life cycle cost techniques, and
· Understand how to apply life cycle costing techniques.

3.2 SIMPLE PAYBACK PERIOD

What is Simple Payback Period?

While conducting energy audit, you will be recommending energy conservation
measures which will require some kind of investment in procuring energy
efficient devices. In turn, you will be saving energy and hence its cost. The time
taken by the new energy efficient devices to recover its cost is called simple
payback period.
Let us assume that Cd is the cost of energy efficient device and Se is the cost of
energy saved by the energy efficient device in a year.
The simple payback period, T, is then given by
Cd
T= . . . (3.1)
Se
Ideally, the energy savings on monthly basis are calculated and thereafter are
summed for a year.
You will notice that it is very easy to compute the simple payback period but its
major weakness is that it ignores the time value of money, i.e. it does not take in
to account the interest rate, inflation rate, escalation in cost, maintenance costs,
etc. All these factors are taken into consideration in the life cycle cost analysis.
Nevertheless, simple payback period gives a quick estimate of how long it will
take us to recover the investment.
Example 3.1
An energy saving measure costs Rs. 3750 and it saves energy equivalent to
Rs. 4500 per year. Determine the simple payback period.
Solution
The simple payback period by using Eq. (3.1) is
3750 ´ 12
T = = 10 months
4500
Pay Back Period when annual savings are unequal
In the above example, we have assumed that annual cash flow is the same each
year. However, there may be cases when the annual cash flows are different in
subsequent years. In such a case, the payback period is determined when the
accrued savings equal the initial investment costs. This happens when the
cumulative cash flow balance becomes zero.
Let us demonstrate this by taking an example.
Example 3.2
In an energy conservation measure, there is an initial investment of Rs. 5000.
The cost of energy savings are Rs. 2000 in first year, Rs. 1500 in second year,
Rs. 1500 in third year and Rs. 500 in fourth year. What will be payback period?
44
 Cost Analysis of Energy
Solution Savings
The payback period is 3 years as demonstrated in Table 3.1.
Table 3.1 : Simple Payback Period
Year Annual Cash Cumulative Cash
Flow (Rs.) Balance (Rs.)
0 (at the time of the 5000 5000
start of the project)
1 2000 5000-2000 = 3000
2 1500 3000-1500 = 1500
3 (Payback = 3 1500 1500-1500 = 0
years)
4 500 500

3.3 PRESENT WORTH METHOD

You may have a situation when you have the option of choosing between more
than one energy conservation measure and you have to decide the best option. In
such a situation, the Present Worth Method (return on investment) of cost analysis
is the right option. It takes the time value of money in to account and evaluates
the desirability of an alternative for some base year. Essentially it looks at the
present equivalent of future cash flows (money in and out from a system).
The present worth, PW, is calculated as follows :
C
PW = . . . (3.2)
(1 + i ) n
where C = value of the cash flow,
i = interest rate, and
n = number of years.
Let us take an example.
Example 3.3
There are two energy conservation measures as described below :
Energy Conservation Measure 1 : The equipment costs Rs. 10,000 and pays back
Rs. 12000 in two years.
Energy Conservation Measure 2 : The equipment costs Rs. 7000 today and pays
back Rs. 4000 each year for two years.
If the interest rate is 8%, determine the best alternative.
Solution
For alternative 1, the return on investment
12000
= - 10000
(1 + 0.08) 2
= 280

45
Energy Planning and
Management
For alternative 2, the return on investment
4000 4000
= + - 7000
(1 + 0.08)1
(1 + 0.08) 2
= 3704 + 3429 – 7000 = 133
The return on investment is more in alternative 1 and hence alternative 1 is a
better option as compared to alternative 2.

3.4 LIFE CYCLE COST ANALYSIS

You may be wondering why there is need of another complicated method of

calculating cost of energy conservation measures. The reason is simple. We need
a system that not only determines the total cost of an energy conservation
measure but can also compare the cost of alternative measures and also tell us
which alternative is better. The Life Cycle Cost (LCC) does this. We will use a
simple example to illustrate this so that you are able to calculate LCC of energy
conservation measures.
3.4.1 Life Cycle Cost (LCC)
In its simplest form, LCC is a process which determines initial and future costs of
an energy conservation measure. There are several components of LCC :
1. The costs of the system (initial cost and future cost). The future costs
can be of two types; one time costs that do not occur every year over
the life of the system and recurring costs that may occur every year
over the life of the system. The costs like the replacement costs of a
system are one time costs while operating and maintenance costs are
recurring costs.
2. The life of the system.
3. Discount rate for converting all future costs in to present costs. It may
or may not include rate of inflation. If rate of inflation is included, it is
called nominal discount rate. If rate of inflation is excluded, it is
called real discount rate.
4. Salvage value, the value of the system after its useful life
Thus LCC is expressed as follows :
LCC = Capital cost + Replacement cost + Maintenance cost
+ Energy cost – Salvage value
The various terms in this equation are explained below :
Capital Cost : It is the present worth of the money
Replacement Cost : This cost may occur at later years and needs to be
converted to present worth.
Maintenance Cost : It is the annual maintenance cost and needs to be
converted to present worth.
Energy Cost : It is the cost of energy and needs to be converted to
present worth.
Salvage Value : The device after the end of its useful life, may fetch some
money. It is called the salvage value and has to be
converted to present worth.
46
 Cost Analysis of Energy
3.4.2 Present Value ( Present Worth) Savings
In order to make things simple, the following two assumptions are made :
(a) all recurring costs are expressed as annual expenses incurred at the
end of each year.
(b) Onetime costs are incurred at the end of the year in which they incur.
Before you proceed further, it would help you to understand the concept of simple
and compound interest.
Simple Interest : Simple interest is calculated using the principal amount only.
Generally we speak about Principal amount and the interest amount over it for a
certain period (called interest period). The total simple interest over several
periods is computed as :
Simple Interest = (Principal) x (Number of Periods) x (Interest Rate)
The total sum available at the end of n years may be determined as follows:
S = P (1 + i n) . . . (3.3)
where S = Sum available at the end of interest periods. This is also called
Future Worth,
P = Principal amount. This is also called Present Worth,
n = Number of years, and
i = Annual interest rate.
Compound Interest
In compound interest, the time value of money on the interest is taken into
account. For compound interest, the interest amount for each interest period
(year) is calculated on the principal plus the total amount of interest accumulated
in all previous periods. The interest for one period is calculated as:
Compound Interest = (Principal + All accrued Interest) x (Interest Rate)
The total sum available after a number of interest periods can be calculated as
follows :
S n = P (1 + i) n . . . (3.4)
where Sn = Sum available at the end of n interest periods,
P = Principal amount,
i = Interest rate expressed in decimal form (annual interest rate), and
n = Number of interest periods (number of years).
The factor (1 + i)n is called the future worth (FW) factor.
Example 3.4
An amount of Rs. 5000 is invested in an energy conservation measure. If the same
amount is invested in another option where interest rate is 10%, what will be
amount available at the end of one year?
Solution
We have P = 5000
i = 10% = 0.1

47
Energy Planning and
Management
Using Eq. (3.4), we have
S = 5000 (1 + 0.1)1
= 5000 ´ 1.1
= 5500
You will get the same value of S by using Eq. (3.3) also. This means that the sum
available at the end of first year would be same for both simple interest and
compound interest calculations.

Point to Remember
For interest periods greater than one year, the sum available with compound interest
would be larger as compared to sum available with simple interest.

It is thus clear that if we know the present worth, annual interest rate and number
of years, we can calculate the future worth.
Alternatively, we may know the future worth of money and we need to find its
present worth. In such a case Eq. (3.4) may be re-arranged to give the present
worth :
Sn . . . (3.5)
P =
(1 + i ) n
Here the factor 1/(1 + i)n is called Present Worth Factor.
The present and future worth can be graphically depicted by a cash flow diagram,
as shown in Figure 3.1 below. The amount available in the beginning (year 0) is
Principal amount (Present Worth) and the amount available in nth year is Future
worth.

nth year
0 year

Future
Present Worth, Sn
Worth , P

Figure 3.1 : Cash Flow Diagram

We use Eqs. (3.3) and (3.4) involving single payment. When we have
annual/monthly equal payments, following equations may be used.
é (1 + i) n - 1ù
P =A ê n ú
. . . (3.6)
ë i (1 + i ) û
where P = Present worth, and
A = Uniform annual payment.
Eq. (3.6) may also be written as follows :
Sn
P= . . . (3.7)
(1 + i) n

48
 Cost Analysis of Energy
Sn is the Future worth and is given by the following relation : Savings
é (1 + i ) n - 1ù
Sn = A ê ú . . . (3.8)
ë i û
From these equations, following things may be calculated :
(1) present worth or future worth, given uniform annual amounts.
(2) uniform annual amounts given, either present worth or the future
worth.
A typical example would be a person borrowing money from a financial
institution for buying an energy efficient device. Knowing the interest rate and
number of installments, the person can calculate the uniform equal amounts he or
she has to pay depending on the amount borrowed.
A typical cash flow diagram is shown in Figure 3.2. The up-arrow indicates the
amount ‘coming in’ such as borrowing and the down arrow indicates the amount
‘going out’ such as re-payments towards the borrowing.

P
(Borrowing)

A (Repayments)

Figure 3.2 : Typical Cash Flow

Inflation : Inflation can be understood as an increase in the amount of money
necessary to obtain the same amount of product before the inflated price was
present.
Why we should consider inflation?
Inflation occurs due to downward change in the value of the money and therefore
we must consider it. Let us assume the following :
‘C’ = the cash in hand today for buying an energy efficient device, and
f = inflation rate.
The amount needed to pay for the same device after n years would be C (1 + f)n,
assuming uniform inflation over the years. The present worth of such money with
interest component added is given by :
(1 + f ) n
Pf = C . . . (3.9)
(1 + i )n
where Pf = Present worth with inflation taken into account.
There may be several interesting cases depending upon the values of i and f.
If i = f, no change in worth, year after year.

49
Energy Planning and
Management
If i > f, It may be better to save and not to buy the device now.
If i < f, It may be better to buy the device now and not to save.
An important relationship between the present worth and the uniform annual
amount taking inflation into account is given by the following equation :

æ 1 + f öé æ 1 + f ö ù
n

P = Açç ÷÷ ê1 - ç ÷ ú for i ≠ f . . . (3.10)

è i - f ø êë è 1 + i ø úû
and P = A n for i = f . . . (3.11)

3.5 ANNUAL LIFE CYCLE COST WITH INFLATION

The Annual Life Cycle Cost (ALCC) after taking inflation into account may be
calculated by using the following relation:
LCC
ALCC = . . . (3.12)
æ 1 + f öé æ 1 + f ö ù
n

çç ÷÷ ê1 - ç ÷ ú
è i - f ø êë è 1 + i ø úû
Let us demonstrate the concepts developed above by taking an example.
Example 3.5
A solar PV array of 200 W has been installed to pump water from a bore-well of
3 meters depth using a submersible motor and pump system to an over-head tank.
The length of pipe required to pump the water is 10 meters. Following are the
costs involved for the sub-systems and their life spans:
PV Array : Rs. 400/peak W; Life = 15 years
Motor and pump : Rs. 100/W; Life = 7.5 years
Pipe cost : Rs. 400/m; Life = 5 years
Cost of digging the bore well = Rs. 600/m
Maintenance cost : Rs. 4000/year
Miscellaneous cost : Rs. 200/W
Interest rate : 10%
Determine the Life Cycle Cost of the water for a period of 20 years and also water
cost per year (ALCC).
Solution
Step 1 : Calculate the Capital Cost
Cost of PV array = Rs. 400/W ´ 200 W = Rs. 80000
Cost of motor and pump = Rs. 100/W ´ 200 W = Rs. 20000
Cost of pipe = Rs. 400/m ´ 10 m = Rs. 4000
Cost of digging the bore-well = Rs. 600/m ´ 3 m = Rs. 1800
Miscellaneous cost = Rs. 200/W ´ 200 W = Rs. 40000
Total capital cost = Rs. (80000 + 20000 + 4000 + 1800
+ 40000) = Rs. 145800
50
 Cost Analysis of Energy
Step 2 : Calculate Replacement Cost (R) Savings
Replacement cost of motor and pump after 7.5 years = Rs. 2000
th
Replacement cost of pipe at the end of 5 year = Rs. 4000 each
th
Replacement cost of pipe at the end of 10 year = Rs. 4000 each
Step 3 : Calculate Maintenance Cost (M)
The annual maintenance cost is given as Rs. 4000.
Let us work out the cost details :
(1) The capital cost at year 0. Let it be P1 = Rs. 145800
(2) R1 is the replacement cost of pipe in year 5. The present worth of R1
as P2 may be calculated as follows :
P2 = R1/(1 + i)n = 4000/(1 + 0.1)5 = Rs. 2484
(3) R2 is the replacement cost of motor and pump in year 7.5. The present
worth of R2 as P3 may be calculated as follows:
P3 = R2/(1 + i)n = 2000/(1 + 0.1)7.5 = Rs. 979
(4) R3 is the replacement cost of pipe in year 10. The present worth of R3
as P4 may be calculated as follows:
P4 = R3/(1 + i)n = 4000/(1 + 0.1)10 = Rs.1544
(5) M is the annual maintenance cost starting at the end of year 1 till the
end of year 15. The present worth of this as P5 may be calculated as
follows :
1é 1 ù
P5 = M ê1 -
i ë (1 + i) n úû

1 é 1 ù
= 4000 ê1- 15 ú
= Rs. 30407
0.1 ë (1 + 0.1) û
Step 4 : Calculate LCC
The total present worth = LCC = P = P1 + P2 + P3 + P4 + P5
LCC = Rs. (145800 + 2484 + 979 + 1542 + 30424) = Rs. 181229
Step 5 : Calculate ALCC
Using Eq. (3.12), we have
LCC
ALCC =
æ 1 öé æ 1 ö ù
n

ç ÷ ê1 - ç ÷ ú
è i ø ëê è 1 + i ø ûú

182192
= = Rs. 23827
æ 1 öé æ 1 ö ù
15

ç ÷ê ç1 - ÷ ú
è 0.1 ø êë è 1 + 0.1 ø úû

Hence the water cost per year is Rs. 23827

Once equipped with all these equations, you may now see the effect of
interest rate, effect of cost of PV array, effect of PV array size, etc. Some of
these results are given in Table 3.2.
51
Energy Planning and
Management
Table 3.2 : Effect of Various Parameters on ALCC
Effect of Interest Rate
Interest Rate LCC ALCC
0.08 194295 18719
0.1 181229 23827
0.15 172868 29563
Increasing interest rate increases ALCC
Effect of Size of PV Panel
PV Panel, W LCC ALCC
200 181229 23827
300 251229 33030
400 321229 42233
Increasing the size of PV Array increases ALCC
Effect of Cost of PV Array

PV Array Cost
LCC ALCC
for 200 W Array

400 181229 23827

300 161229 21197
200 141229 18568

3.6 LIFE CYCLE COST OF RENEWABLE ENERGY

SYSTEMS

We will now apply the life cycle cost techniques to alternative renewable energy
technologies. We need to assess the cost implications while taking into account
environmental implications. Life cycle cost analysis (LCCA) provides effective
evaluation to pinpoint cost effective alternatives.
3.6.1 Solar PV Power
The main components of a PV system are :
1. PV panels to convert solar radiations into electricity.
2. Batteries to store electricity generated by solar PV panels.
3. Inverters to convert DC stored in the batteries into AC.
In addition to above, the following user specified variables are important :
1. Peak power required for power appliances.
2. Total energy produced/consumed per day.
3. Hours of sunshine (average).
Cost of Inverter as Function of Peak Power Required :
The amount of peak power the system can deliver will be determined by the size
of the system inverter. Let us assume that the cost of an inverter is about Rs. 100
per watt. Then on kW basis, the cost of inverter, CI is
CI = Rs. 100000/kW . . . (3.13)
52
 Cost Analysis of Energy
The total cost of the inverter, for a given peak power used, is given by : Savings
CI = Ppu ´ Rs. 100000/kW . . . (3.14)
where Ppu is the peak usage.
Cost of Solar Panels as a Function of Energy Usage :
The peak power, Ppp, produced by the solar panels is determined by the type and
number of solar panels one uses :
Ppp = number of panels ´ power per panel
Note that the peak usage may not necessarily be equal to the peak panel power
because the power generated by the solar panels is stored up over time by
batteries. So it is quite possible that more peak power is delivered by the inverter
than is produced by the panels.
Using the formula for power and energy (Power = Energy/Time), we have
Ppp = Eused/Hs
where Hs = Average hours of sunshine, and
Eused = Energy used.
Let us take the cost of panels (Cp) as Rs. 400,000/kW.
Thus, Cp = (Eused/Hs) ´ Rs. 400,000/kW . . . (3.15)
Cost of Batteries as a Function of Energy Usage :
The size of the batteries determines how much energy we can use when sunshine
is not available. The lifetimes of batteries are fairly short – about 3 to 5 years.
Batteries are not discharged more than 50%. We can safely assume that the
batteries will be able to store twice the amount of energy we use:
Es = 2 ´ Eused
The cost of batteries is about Rs. 5000 per kWh of storage. Thus,
The cost of batteries, therefore, as a function of energy used, is
Cb = 2 ´ Eused ´ Rs. 5000/kWh . . . (3.16)
where Cb is the cost of the batteries.
We will now calculate the life cycle cost per kWh.
The life and the cost data of PV panel, Inverter and Batteries are given in
Table 3.3.
Table 3.3 : Cost data of PV and Associated Components
Sl. No. System Cost Life
1. PV panel Rs. 400000/kW 25 Years
2. Inverter Rs. 50000/kW 25 Years
3. Battery Rs. 10000/kWh 5 Years

If interest rate i is 10%, the cost components may be evaluated as follows :

Capital Cost = Rs. (400000 + 50000 + 10000 = Rs. 460000
10000 10000 10000 10000
Replacement Cost of batteries = 5
+ 10
+ 15
+
(1 + i) (1 + i ) (1 + i ) (1 + i )20
= Rs. 13945/kWh
53
Energy Planning and
Management
Maintenance Cost : As we are considering only from the point of view of
generation, maintenance cost is negligible.
Energy Cost : It does not require any external energy (because the system uses
solar energy) to produce the electrical energy.
Life Cycle Cost = Rs. (460000 + 13945) = Rs.473945
Total kWh used = 25 Years × 365 Days × Eused
= 9125 ´ Eused
Therefore, Cost per kWh = Life Cycle Cost/(9125 ´ Eused)
Example 3.6
The energy requirements for typical houses are 5 kWh, 10 kWh, 15 kWh and
20 kWh. The size of PV panel is 5 kW. Determine the life-cycle cost per KWh.
Solution
We can use Eqs. (3.14) to (3.16) to calculate cost per kWh. The results are
summarized in Table 3.4.
Table 3.4 : Energy Costs of PV System
Case Energy Life-Cycle (Rs./kWh)
Requirement Cost (Rs.)
I 5 kW 703058 15.41
II 10 kW 1156117 12.67
II 15 kW 1609175 11.76
IV 20 kW 2062233 11.30

3.6.2 Biogas Power

The major components of Biogas plant are listed as follows :
1. Gassifier
2. Piping
3. Sand filter
4. Diesel engine
5. Electric Generator
The costs of different components of Biogas plant are given in Table 3.5.
Table 3.5 : Cost Components of Biogas Plant
Item Cost for 5 kW Plant Expected Life
(Rs.) (Years)

Biogas Plant 140000 20

Piping 10000 10

Sand Filter 4000 10

Diesel Engine (7Hp) 40000 15

Generator (5kVA) 80000 15

Accessories 21000 10

Engine Room 15000 20

54
 Cost Analysis of Energy
Now let us say interest rate i =10% Savings
Then the life cycle cost is calculated as follows :
Capital Cost =140000 + 10000 + 4000 + 40000 + 80000
+ 21000 + 15000
= Rs.310000
Replacement Cost may be calculated as follows :
10000 4000 40000
Re placement Cost = + +
(1 + 0.1)10
(1 + 0.1)10
(1 + 0.1)15

80000 21000
+ +
(1 + 0.1)15
(1 + 0.1)10
= Rs. 42221
Maintenance cost = 1% of total capital cost per year
= Rs. 26392
Therefore, Life cycle cost = Rs. (310000 + 42221 + 26392) = Rs. 378613.
3.6.3 Wind Energy System
The major components of a wind energy system are :
1. Wind mill
2. Gear box
3. Controller
4. Wind turbine
5. Electric generator
The costs of the above mentioned components are given in Table 3.6.
Table 3.6 : Cost Components of Wind Power System

Item Cost Expected Life

(Rs. per kW) (Years)

Wind Mill 30000 20

Gearbox 3000 10

Controller 2500 10

Wind Turbine 12000 15

Electric Generator 6000 15

Accessories 2000 5

Now let us say interest rate i =10%

Then the life cycle cost per KW is calculated as follows :
Capital Cost = 30000 + 3000 + 2500 + 12000 + 6000 + 2000
= Rs. 55500

55
Energy Planning and
3000 2500 12000 6000
Management Re placement Cost = + + +
( 1 + 0.1 )10
( 1 + 0.1 )10
( 1 + 0.1 )15
( 1 + 0.1 )15

2000 2000 2000

+ + +
( 1 + 0.1 ) 5
( 1 + 0.1 )10
( 1 + 0.1 )15
= Rs.8921
Maintenance cost = 1% of total capital cost per year
= Rs. 4725
Therefore, Life cycle cost per KW = Rs. (55500 + 8921 + 4725) = Rs. 69146.

3.7 LET US SUM UP

In this Unit you have learnt about various techniques of calculating the cost of
energy conservation measures.
Life-cycle Cost (LCC) is an equivalence method by putting all the costs,
present and future, of the alternative systems on the common basis of present
worth.
We need a system which not only determines the total cost of an energy
conservation measure but can also compare the cost of alternative measures and
also determine which alternative is the best under the given circumstances. The
Life Cycle Cost (LCC) offers this advantage. In its simplest form, LCC is a
process which determines initial and future costs of an energy conservation
measures.
Thus LCC is expressed as follows :
LCC = Capital cost + Replacement cost + Maintenance cost
+ Energy cost – Salvage value
Life-cycle Savings (LCS) evaluates the difference between two alternative
systems. The alternative that saves the most in terms of the total life-cycle
savings is considered as favourable.
Payback Time is defined as the amount of time required for the cumulated
savings to equal the initial investment in an energy conservation.
Simple Payback Period is the time taken by the new energy efficient devices to
recover its cost.
Present Worth (PW) is defined as
C
PW =
(1 + i ) n

where C = value of the cash flow,

i = interest rate, and
n = number of years.

56
 Cost Analysis of Energy
3.8 KEY WORDS Savings

Capital cost
It is the present worth of the money.
Replacement cost
This cost may occur at later years and needs to be converted to present
worth.
Maintenance cost
It is the annual maintenance cost and needs to be converted to present
worth.
Energy cost
It is the cost of energy and needs to be converted to present worth.
Salvage value
The device after the end of its useful life, may fetch some money. It is
called the salvage value and has to be converted to present worth.

57