Definition of Levelized cost

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TeachMeFinance.com - explain Levelized cost



Levelized cost

The term 'Levelized cost' as it applies to the area of energy can be defined as ' The present value of the total cost of building and operating a generating plant over its economic life, converted to equal annual payments. Costs are levelized in real dollars (i.e., adjusted to remove the impact of inflation)'.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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