present_value_future_risk: Present Value of Future Risk

In CNAIM: Common Network Asset Indices Methodology (CNAIM)

Present Value of Future Risk

Description

This function calculates the present value of future risk. See section 5.5 on page 32 in CNAIM (2021).

Usage

present_value_future_risk(pof, cof, r = 0.035)

Arguments

pof	A vector of the probability of failure of the asset over years
cof	The consequence of failure of the asset
r	discount rate

Source

DNO Common Network Asset Indices Methodology (CNAIM), Health & Criticality - Version 2.1, 2021: https://www.ofgem.gov.uk/sites/default/files/docs/2021/04/dno_common_network_asset_indices_methodology_v2.1_final_01-04-2021.pdf

Examples

present_value_future_risk(c(0.1, 0.2, 0.5), 100)

CNAIM documentation built on Aug. 31, 2022, 9:13 a.m.