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\subsection{Lifecycle Cost Planning and Time Value Money (TVM) Analysis}

\begin{center}
\textbf{Updated Cash Flow Diagram for Control-Based Station (5-Year Lifecycle)}
\end{center}

\begin{tikzpicture}[&gt;=Stealth, scale=1, every node/.style={scale=1}]
  % Draw timeline
  \draw[-&gt;] (0,0) -- (6.5,0) node[right] {Time (Years)};
  \foreach \x in {0,1,2,3,4,5} {
    \draw (\x,0.1) -- (\x,-0.1) node[below] {\x};
  }

  % Year 0 - Initial Investment
  \draw[-&gt;, thick] (0,0) -- (0,-2.65) node[below] {- \$530};

  % Years 1–4 - Annual Operating Cost
  \foreach \x in {1,2,3,4} {
    \draw[-&gt;, thick] (\x,0) -- (\x,-1.2) node[below] at (\x,-1.4) {- \$120};
  }

  % Year 5 - Annual Cost + Salvage
  \draw[-&gt;, thick] (5,0) -- (5,-1.2) node[below left] {- \$120};
  \draw[-&gt;, thick, green!60!black] (5,0) -- (5,2) node[above] {+ \$200};

  % Labels
  \node at (3,-4.2) {Cash Outflows = CAPEX \&amp; OPEX};
  \node at (5.8,2.4) {Salvage Value};
\end{tikzpicture}

\par \textbf{Cost Constrain:} The system is designed with strict cost constraints to ensure affordability for small-scale farmers and homesteaders. The goal is to maintain an annual operating cost below \$200 and a one-time hardware cost under \$1000, as specified in REQ-20 and REQ-26. The cost model incorporates hardware components, connectivity fees, and maintenance buffers.

\begin{table}[H]
\centering
\caption{Estimated First-Year and Annual Operating Costs for Current System}
\begin{tabular}{|l|l|l|}
\hline
\textbf{Category} &amp; \textbf{One-Time Cost (USD)} &amp; \textbf{Annual Cost (USD)} \\
\hline
Edge Device (Raspberry Pi 4 + Peripherals) &amp; \$100 &amp; -- \\
Sensors (Weather Station + Soil Moisture Sensor)    &amp; \$200 &amp; -- \\
4G Modem + SIM Hardware                    &amp; \$50  &amp; -- \\
Solar Power Kit + Battery Storage          &amp; \$150 &amp; -- \\
Weatherproof Enclosure                     &amp; \$30  &amp; -- \\
Data Connectivity (4G SIM, low-data)       &amp; --    &amp; \$6--\$12 \\
Preventive Maintenance Buffer              &amp; --    &amp; \$50 \\
Cloud/Remote Logging (Optional)            &amp; --    &amp; \$60 \\
\hline
\textbf{Total Estimate}                    &amp; \textbf{\$530} &amp; \textbf{\$116--\$122} \\
\hline
\end{tabular}
\end{table}

\noindent
The model assumes one centralized edge device performing both hub and compute functions. This reduces recurring data costs by minimizing transmission frequency and eliminates the need for cloud-hosted control services. The architecture supports expansion through additional sensors without significantly increasing operating costs.

Performing Trade-off study for not using alternatives as mentioned in House of Quality (figure \ref{fig:hoq})
\begin{table}[H]
\centering
\caption{10-Year Cost Comparison: Control-Based vs. Azure IoT System}
\begin{tabular}{|p{0.3\textwidth}|l|l|}
\hline
\textbf{Item} &amp; \textbf{Control-Based System (USD)} &amp; \textbf{Azure IoT System (USD)} \\
\hline
Initial Hardware Cost &amp; \$530 &amp; \$300 \\
10-Year Subscription Cost &amp; \$0 &amp; \$1,800 \\
10-Year Operating Cost &amp; \$1,200 &amp; \$1,200 \\
Salvage Value (End of Year 10) &amp; -\$200 &amp; \$0 \\
\hline
\textbf{Total Lifecycle Cost} &amp; \textbf{\$1,530} &amp; \textbf{\$3,300} \\
\hline
\end{tabular}
\label{tab:10year-cost-comparison}
\end{table}

\begin{table}[H]
\centering
\caption{Detailed Annual Operating Cost Estimate}
\renewcommand{\arraystretch}{1.2}
\begin{tabular}{lll}
\hline
Cost Item                          &amp; Annual Estimate   &amp; Notes \\
\hline
Replacement batteries \&amp; parts      &amp; \$40               &amp; Rechargeables for sensors, valve batteries \\
Occasional sensor replacement      &amp; \$50               &amp; 1–2 sensors/year \\
Manual maintenance time (labor)    &amp; \$50–\$70           &amp; Self-service \\
Data storage backup (USB rotation) &amp; \$20               &amp; Flash drives \\
Cloud Services (avoided)           &amp; \$0                &amp; Azure IoT Central typically charges \$5–10 per device/month ⇒ saved \$60–\$120/year \\
Total Annual Cost                  &amp; \textasciitilde{}\$160             &amp; Under target \$ 200\\
\hline
\end{tabular}
\end{table}

\begin{table}[H]
\centering
\caption{Financial Model Input Parameters}
\renewcommand{\arraystretch}{1.2}
\begin{tabular}{lr}
\hline
Category                &amp;     Value \\
\hline
Initial Cost (B)        &amp;    625    \\
Annual Income (Benefit) &amp; 180000    \\
Annual Operating Cost   &amp;    160    \\
Net Annual Cash Flow    &amp; 179840    \\
Discount Rate (MARR)    &amp;      0.12 \\
\hline
\end{tabular}
\end{table}

\newpage
\begin{landscape}
\begin{table}[H]
\centering
\caption{6-Year Financial Model with MACRS 5-Year Depreciation (Landscape)}
\resizebox{\linewidth}{!}{%
\begin{tabular}{rrrrrrrr}
\hline
Year &amp; BTCF &amp; MACRS Dep Rate &amp; MACRS Dep Deduction &amp; Book Value &amp; Taxable Income &amp; Income Taxes &amp; ATCF \\
\hline
0 &amp; -625   &amp; 0       &amp; 0    &amp; 625  &amp; -125  &amp; 0 &amp; -625   \\
1 &amp; 179840 &amp; 0.20    &amp; 125  &amp; 500  &amp; -200  &amp; 0 &amp; 179840 \\
2 &amp; 179840 &amp; 0.32    &amp; 200  &amp; 300  &amp; -120  &amp; 0 &amp; 179840 \\
3 &amp; 179840 &amp; 0.192   &amp; 120  &amp; 180  &amp; -72   &amp; 0 &amp; 179840 \\
4 &amp; 179840 &amp; 0.1152  &amp; 72   &amp; 108  &amp; -72   &amp; 0 &amp; 179840 \\
5 &amp; 179840 &amp; 0.1152  &amp; 72   &amp; 36   &amp; -36   &amp; 0 &amp; 179840 \\
6 &amp; 179840 &amp; 0.0576  &amp; 36   &amp; 0    &amp; 0     &amp; 0 &amp; 179840 \\
\hline
\end{tabular}%
}
\end{table}

\begin{table}[H]
\centering
\caption{NPV and IRR Computation for 6-Year Financial Model}
\renewcommand{\arraystretch}{1.2}
\begin{tabular}{ll}
\hline
Metric &amp; Value \\
\hline
Initial Investment (Year 0) &amp; \(-\$625\) \\
Net Annual Cash Flow (Years 1–6) &amp; \$179,840 \\
Discount Rate (MARR) &amp; 12\% \\
Net Present Value (NPV) &amp; \$851,222.79 \\
Internal Rate of Return (IRR) &amp; 2882.7\% \\
\hline
\end{tabular}
\end{table}

\end{landscape}

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