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Sagot :
Answer:
a. Investment cost of replacing one fixture = $500
Number of fixtures = 700
Investment cost of replacing 700 fixtures = $500 * 700
Investment cost of replacing 700 fixtures = $350,000
b. Total Hours annually = Operating hours per day 8 Operating days per year = 10 * 300 = 3000 hours
Utility cost per kilowatt hour = $0.11
Savings in consumption per hour per fixture = 500 watts - 300 watts = 0.2 kilowatt per hour
Annual Savings in utility cost = Savings in consumption per hour * Total Hours * Utility cost * Number of fixtures
Annual Savings in utility cost = 0.2 * 3000 * 0.11 * 700
Annual Savings in utility cost = $46,200
c. Net present Value = PV of Annual Savings - Initial Investment
When Annual Savings = $46,200, Initial Investment = $350,000, Cumulative discounting factor of 8% for 15 years = 8.5595
Net present Value = ($46,200 * 8.5595) - $350,000
Net present Value = $395,448.90 - $350,000
Net present Value = $45,448.90
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