Table 5

Additional flow and stock equations

EqVariableFormulaParameters/Conditions
16Total active fleetFleet stage 1 new + Fleet stage 2 mid + Fleet stage 3 old
17Stage durationReplacement cycle time / 3
18Revenue generationTotal active fleet × Annual benefits per container / 12 × Route multiplierRoute multiplier = 1.32 (Asia-Europe); otherwise = 1.0
19Operating cost flowTotal active fleet × Operating cost per container / 12
20Operating cost per container(Base op costDry × %Dry/100 + Base op costReefer × (100 − %Dry)/100) × Technology cost factorBase Op costDry = $240; Base op costReefer = $600
21Replacement expenditureReplacement cycling × Replacement cost unitReplacement cost unit = Initial cost per container × 0.5
22Ageing flow (stage 12)Fleet stage 1 new / Stage duration
23Ageing flow (stage 23)Fleet stage 2 mid / Stage duration
24Replacement cyclingFleet stage 3 old / Stage duration
25Net cash flowRevenue generation − Operating cost flow − Replacement expenditure − Investment inflow
26Investment inflowCalculated new adoption rate × Initial cost per container
27Discounted cash inflowNet cash flow × Discount factor
28Profit accumulationRevenue generation − Operating cost flow − Replacement expenditure − Total depreciation expense
29Total depreciation expensePlatform depreciation flow + Equipment depreciation flow
30Platform depreciation flowPlatform development fee / Platform useful lifeCondition: if Accumulated platform depreciation < Platform development fee; otherwise = 0; Platform useful life = 72 months
31Equipment depreciation flow(Total investment − Platform development fee) / Replacement cycle time
32Financing costsTotal investment × 0.06 / 12
33NPV (net present value)Cumulative discounted cash flow
34Payback achieved1 if Cumulative cash flow ≥0; otherwise = 0
35Discounted payback achieved1 if Cumulative discounted cash flow ≥0; otherwise = 0

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