# Economic Superiority of PIP Slip Joint Compared to Conventional Tubular Joints
## 1 Introduction
Embedding NPV analysis into a binomial tree allows for dynamic evaluation over time, accommodating different states of the world. This approach models cash flows with both fixed and variable components, enhancing the analysis of projects with real options [35; 36; 37]. By considering local climatic conditions, practical retrofit measures, and relevant retrofit costs, these models provide a comprehensive framework for evaluating the financial implications of various renovation strategies [31]. Another important factor in the NPV analysis is the potential revenue streams generated from improved performance and reduced maintenance expenses [38; 39]. PIP slip joints may offer superior performance characteristics, such as increased reliability and efficiency, which can translate into higher productivity and reduced downtime. These performance improvements can lead to increased revenue generation, offsetting the initial investment and operational costs. Additionally, the reduced need for maintenance and repairs can result in lower operational disruptions and associated costs, further enhancing the financial attractiveness of PIP slip joints [34; 40]. The analysis also considers the broader economic implications of adopting PIP slip joints. For instance, the use of these joints may align with sustainability goals by reducing the environmental impact associated with frequent maintenance and repairs. The primary objective of this study is to assess the overall financial implications of using PIP slip joints in comparison to conventional joint types. The design of various joints was conducted based on the findings of a prior study, which utilized seven years of average monthly wind and wave data from Buan offshore monitoring station (Buan-gun, Jeollabuk-do, South Korea) in Korea (35.667\({}^{\circ}\)N, 125.733\({}^{\circ}\)E) [24]. Using this design data, we can calculate both the initial material costs and the fabrication expenses. Initial investment costs are a significant consideration in the adoption of PIP slip joints. These costs include the expenses associated with the procurement and installation of the joints. Also, the installation process for PIP slip joints is different from that of traditional tubular joints, potentially leading to variations in labor and equipment costs. It is essential to account for these differences to provide an accurate comparison of the initial financial outlay required for each joint type [24; 40]. Operational costs, particularly those related to maintenance and repairs, play a crucial role in the lifecycle cost analysis of the joints. Traditional tubular joints may require more frequent maintenance due to their susceptibility to wear and tear, which can result in higher long-term costs. In contrast, PIP slip joints are designed to offer enhanced durability and reduced maintenance needs, potentially leading to significant cost savings over time. Evaluating these operational costs is vital to understanding the long-term economic benefits of these different connection systems [41]. The comprehensive NPV analysis of PIP slip joints compared to traditional tubular joints evaluates the initial investment, maintenance, and repair costs, as well as potential revenue gains from enhanced performance and reduced upkeep. This assessment provides a thorough understanding of the financial implications of adopting PIP slip joints, highlighting their economic advantages and viability as an alternative to conventional joint systems.