An energy efficiency project is expected to save $10,000$ kWh annually and $2$ kW of demand. The cost of electricity is $$0\mathrm{.}10/$kWh and $$7/$kW$-$month of demand. The energy efficiency project is expected to cost $$5000$ to implement and will last for $15$ years. What is the simple payback of the project?

Question $5$

For the same project in Question $4,$ what is the net present value of the project at a $10\%$ discount rate $($see page $168$ of your textbook for compound interest factors$)?$ Be sure to include a basic cash flow diagram.