1. Simple Payback
2. life cycle by showing accumulative present-value for the next five years
3. utility savings from the above unit will be reduce pollutants. If the current electric rate is $0.14/kwh, how many pounds of CO2/yr will be reduced from the electrical savings (assume electric generated by natural gas)
4. what could be the reasons that this A/C having a $4000/yr energy saving?
5. how can you improve this A/C to create healthy and productive workplace?

A Company plans to purchase a 10-ton A/C to replace an existing unit. It costs $15,000 to install. It is high-efficiency equipment, which meets the requirement of SCE's rebate program of $50 per ton/year for the first two years. The expected yearly energy saving is $4,000 with 4% escalation rate. The estimated yearly repair/maintenance fee is $1,000 with 2% escalation rate; Assume 5% discount rate, find out