Question: Use the Excel spreadsheet provided to compute the payback period, NPV, and IRR based on the cost SAVINGS from using the alternate Design and the
- Use the Excel spreadsheet provided to compute the payback period, NPV, and IRR based on the cost SAVINGS from using the alternate Design and the LED Design system over the typical Design system.
2. Based on your results in question 1, which lighting design system would you recommend to the GoGreen Supercenter? Be sure to include both the quantitative and the qualitative factors you would consider in evaluating the three designs.
GoGreen Supercenter - Energy Savings and Parking Lot Lighiting System Case | |||||||
LED Lighting Cost Analysis | |||||||
Cost of capital | 6% | ||||||
Luminaire Prices | |||||||
Typical | $ 41,000 | ||||||
Alternate | $ 51,000 | ||||||
LED | $ 94,000 | ||||||
Total Pole | Luminaire | Total | |||||
Total Installation Costs (including Luminaire costs) | # of Poles | Per Pole | Cost | Prices | Costs | ||
Typical | 23 | $ 1,600 | $ 36,800 | $ 41,000 | $ 77,800 | ||
Alternate | 33 | $ 1,600 | $ 52,800 | $ 51,000 | $ 103,800 | ||
LED | 33 | $ 1,600 | $ 52,800 | $ 94,000 | $ 146,800 | ||
Annual | Annual | ||||||
Total Electricity Costs | kWh | $/kWh | Costs | ||||
Typical | 233,000 | $0.09 | $ 20,970.00 | ||||
Alternate | 161,000 | $0.09 | $ 14,490.00 | ||||
LED | 98,000 | $0.09 | $ 8,820.00 | ||||
Annual | |||||||
Annual Maintenance Costs | Costs | ||||||
Typical | $ 3,476.00 | ||||||
Alternate | $ 5,476.00 | ||||||
LED | $ 1,840.00 |
t | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||
Typical |
| |||||||||||||
Total Installation costs | $ 77,800 | |||||||||||||
Annual electricity costs | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | $ 20,970.00 | ||||
Annual maintenance costs | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | $ 3,476.00 | ||||
Total Life Cycle costs | $ 77,800 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | $ 24,446 | |||
NPV (Typical) | $ 257,724.69 | =NPV(D3,F35:O35)+E35 | ||||||||||||
t | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||
Alternate |
| |||||||||||||
Total Installation costs | $ 103,800 | |||||||||||||
Annual electricity costs | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | $ 14,490.00 | ||||
Annual maintenance costs | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | $ 5,476.00 | ||||
Total Life Cycle costs | $ 103,800 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | $ 19,966 | |||
NPV (Alternate) | $ 250,751.50 | =NPV(D3,F45:O45)+E45 | ||||||||||||
t | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |||
LED |
| |||||||||||||
Total Installation costs | $ 146,800 | |||||||||||||
Annual electricity costs | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | $ 8,820.00 | ||||
Annual maintenance costs | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | $ 1,840.00 | ||||
Total Life Cycle costs | $ 146,800 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | $ 10,660 | |||
NPV (LED) | $ 225,258.53 | =NPV(D3,F55:O55)+E55 | ||||||||||||
NPV with Cost of Capital at 6%:
Typical: $257,724.69
Alternate: $250,751.50
LED: $225,258.53
Payback Period:
Typical:
Alternate:
LED:
IRR:
Typical:
Alternate:
LED:
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help