How is the Economic Value of a Catalyst Determined?
The economic value of a catalyst is often assessed through a combination of laboratory testing, pilot plant trials, and economic modeling. Key metrics include:
Return on Investment (ROI) ROI is a critical metric that compares the cost of the catalyst and its implementation with the financial benefits it generates. A high ROI indicates a valuable catalyst.
Net Present Value (NPV) NPV calculates the present value of future cash flows generated by the catalyst, discounted back to the present. A positive NPV suggests that the catalyst will generate more value than its cost.
Payback Period The payback period measures the time it takes for the catalyst to "pay for itself" through cost savings and increased revenues. Shorter payback periods are generally more attractive to investors.
