A. an energy conservation option has a first cost of $50,000. it requires $4000 per year maintenance and saves $10,000 per year in utilities. what is the simple payback period for the option?
b. the system in part a will last 15 years with no salvage value. what is the 15-year life-cycle cost assuming energy cost escalation of 4% annually, maintenance cost escalation of 2% annually, and a 15% discount rate?
tip: using excel will significantly save your time and minimize chance of error
c. assume the option in part a is installed in a building with 200 occupants, with average personnel cost of $60,000 per year. if the device interferes with temperature control, resulting in a 2% decrease in productivity, what would the simple payback be?
put "0" if you answer is "never" (that is less than or equals to 0).
d. assume the option in part b is installed in a building with 200 occupants, with average personnel cost of $60,000 per year. if the device interferes with temperature control, resulting in a 2% decrease in productivity, what would the life-cycle cost?
you can also assume 2% escalation for productivity, meaning that loss will increase by 2% each year.