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Tom McPhail, the head of retirement policy at financial adviser Hargreaves Lansdown, said: "In this case, a change of escalation rates could be the least worse solution.
The escalation rates in O&M during the project lifetime were assumed to be 3% annually.
The effect of escalation rates on labour cost was not considered in the present work.
Accordingly, contingencies and escalation rates were taken into consideration to overcome such exchange rate issues.
The effect of escalation rates on pumping and labour cost has not been considered in the present work.
For this purpose, parametric study with and without escalation rates for a period of 35 years plant life was evaluated.
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Thus, it was verified that the ARIMA model is more suitable than the escalation rate model at decreasing uncertainty in nuclear fuel cycle cost calculation.
The optimal implementation of ESMs and RES depends significantly on the installed heating/cooling system and the escalation rate of the energy price.
In other words, the statistical autoregressive integrated moving average (ARIMA) model and existing engineering cost estimation method, the so-called escalation rate model, were subjected to a comparative analysis.
When the uranium price was forecasted in 2015, the margin of error of the ARIMA model forecasting was calculated and found to be 5.4%, whereas the escalation rate model was found to have a margin of error of 7.32%.
Economic analysis indicated that the NPV of the solar dryer was higher and more stable (against escalation rate of electricity) as compare to the same for electrical oven dryer.
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