w much to discount a cost by for each year from the start of the simulation.
</p>
</div>
</div>
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<h3 id="orgf70a92c"><span class="section-number-3">3.3.</span> Capital costs</h3>
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<p>
Capital costs have two types of special treatment:
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<dl class="org-dl">
<dt>Annualizing</dt><dd>capital costs can be annualized, which means converting them into a fixed repayment loan</dd>
<dt>Recurrence</dt><dd>capital cos