Abstract

Abstract When it comes to making an investment to improve an existing technology, the breakeven point as well as the project lifecycle must be verified. The case of Colombian Navy riverine vessels allowed evaluating whether it was worthwhile to reduce the weight of the armor, in order to reduce the high costs of fuel consumption. The uniqueness of the research lies in the use of an engineering computational tool combined with a statistical analysis of the vessels navigation, in order to quantify the variable costs. With this objective criterion was done a breakeven analysis and evaluated the investment decision. Keywords Break-even analysis, fixed costs, variable costs, break-even point.