Question: Calculate the net present value ( NPV ) over a 1 0 - year period for a 1 0 , 0 0 0 square foot
Calculate the net present value NPV over a year period for a square foot facility
when choosing between:
a Standard light fixtures costing $ per square foot with a projected HVAC system size
requirement of tons.
b More expensive, energyefficient light fixtures costing $ per square foot that would allow for
a reduced HVAC system size requirement of tons.
The cost of the HVAC system is $ per ton with an annual operation cost of $ per ton of
HVAC capacity. Use a discount rate for the NPV calculation. Show all calculations and justify
your choice based on the NPV of initial and operational cost considerations.
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