1 Net Present Value Economic Analysis for Building Operation and Maintenance 2 16 17 18 19 20 year install energy 21 cost savings 3 Analysis of conservation measure with a positive impact on worker productivity 4 5 life cycle of investment (years) 6 installation cost ($) 7 first year energy savings ($) 8 annual maintenance/repair costs ($) 9 annual personnel cost ($) 10 # of employees 11 salary escalation rate (%) 12 energy escalation rate (%) 13 repair/maintenance escalation rate (%) 14 discount rate (%) 15 change in work productivity (%) 15 -55,000 7,500 -500 75,000 20 3 5 2 7 0 Cash Flow in Year of Occurrence change in repair & worker maintenance productivity cash flow compund interest n 1 yearly 12 monthly 52 weekly 365 daily total annual present value total annual daily weekly monthly yearly cumlative year 22 $ $ $ $ 23 24 25 26 27 28 29 0123456 -55,000 0 0 0 0 $ -55,000 value $ -55,000 -55,000 0 -55,000 -55,000 -55,000 -55,000 0 0 0 0 0 30 7 0 31 8 0 32 9 0 33 10 0 34 11 0 35 12 0 36 13 0 37 14 0 38 15 0 39 40 net presents value of life-cycle cah flows: 41 Enter EMULATED VALUES NPV + Accessibility: Investigate + 100% Use the spreadsheet you have developed to evaluate the Net Present Value of the economic case below. Each element of what is listed below must be entered at the appropriate location on the spreadsheet. 1. An energy conservation option has a first cost of $55,000. It requires $500 per year in maintenance and saves $7,500 in utilities. 2. The option will last 15 years with no salvage value. The following interest rates apply: energy cost escalation of 5% annually maintenance cost escalation of 2% annually salary escalation of 3% annually 3. The discount rate for the NPV analysis is 7% and is compounded daily. 4. The energy conservation option is in a building with 20 occupants who have an average personnel cost of $75,000 annually. Assume initially that the investment has no impact on worker productivity. Step 3 - Investigate different scenarios for worker productivity Investigate the importance of worker productivity on economic payback by using the spreadsheet to look at three scenarios: 0% change in worker productivity (energy conservation measure has no impact on worker productivity) +0.2% (energy conservation measure improves worker productivity) -0.2% (energy conservation measure hurts worker productivity)