asset are listed. The annual deprecation of each fixed asset can then be
calculated based on the life expectancy of each item using a straight
line depreciation method. In the calculation of depreciation, we assumed
that the scrap value for each asset is zero. The total investment
on fixed assets is then calculated to be 536,480 euros and the yearly depreciation
is calculated to be 40,081 euros.
In Table 3, the annual cost of production is estimated. The annual
cost of production constitutes two costs, i.e., variable costs (running
costs) and fixed costs (the annual depreciation of fixed assets and cost
of borrowed capital).
i. Power consumption is the total power needed to run the entire facility.
To monetize, we multiply the total power consumption by the
prevailing market price for electricity, i.e., 0.27 euros per kilowatt
hour.
ii. To calculate the labor cost, an average wage for a laboratory technician
is used. According to Statistics Denmark (2012), thewage rate
for a laboratory technician is 35.3 euros per hour. The labor cost