Casework 1 (Individual work-be sure to organize and present your work in a professional format) Efficiency-Economic Analysis (Capital Investment Analysis) The Y company is considering a process machine replacement that is intended to save energy, while increasing annual production by 5,000 units over the current level, which is 25,000 units per year. The profit margin on a unit is $25. Current Machine: 150kW load; 24 hours/day 5 days/wk 52 weeks per year. The weekend load is 10kW (for the other two days in the week @ 24hrs per day). The current machine is expected to have a market value of $10,000 in four years. In order to meet the additional annual production of 30,000 units, the current machine would have to add Saturday (150 kW @ 24 hrs/day) to the new work week going forward. Proposed Machine 1: Initial cost for this machine including installation is $75,000, with a market value in 4 years of $20,000. Proposed Machine 1 will produce the following load profile and produce 30,000 units per year. Over a 24-hour day: (100 kW load for 4 hours, 75kW for 10 hours, and 50kW for 10 hours) 5 days/week 52 weeks per year. The weekend load is 5kW (for the other 2 days in the week @ 24 hrs/day). Proposed Machine 2: Initial cost for this machine including installation is $150,000, with a market value in 4 years of $29,000. Proposed Machine 2 will produce the following load profile and produce 30,000 units per year. Over a 24-hour day: (60 kW load for 24 hours) 5 days/week 52 weeks per year. The weekend load is 5kW (for the other 2 days in the week @ 24 hrs/day). Utility Rebate for Either New Machine: The local utility offers a one-time up-front rebate of $200 per kW load reduction. Do not confuse kW with kWh! See links at bottom of page 2. The rebate takes effect at the start of Year 1. The local utility costs are summarized below. The rates shown apply to the entire year indicated in each column. In reference to the table above, the peak billing period is from June 1 through August 31 each year. On \& off-peak rates are 24 hours per day, depending on the time of year. Note: Many electric utilities charge higher rates in the summer due to higher energy and demand loads caused by air conditioning and the increased loads on all refrigeration systems. See the important note and URLS at the bottom of this page. Note: We are using a 4-year time horizon. Your Task a. Develop a simple payback for the proposed system alternatives (page 1). Ycompany requires a two-year payback period for implementation-what is your recommendation? b. Develop a net present worth for the proposed systems (p. 1); assume a hurdle rate of 10% annual. What is your recommendation? c. Compare and contrast the two methods (a. and b.) of economic analysis. d. Develop a partial productivity for energy metric and calculate for each alternative (p. 1). e. Develop an energy intensity metric and calculate for each alternative (p. 1). f. Compare \& contrast the two methods (d. and e.) of expressing energy impact. Casework 1 (Individual work-be sure to organize and present your work in a professional format) Efficiency-Economic Analysis (Capital Investment Analysis) The Y company is considering a process machine replacement that is intended to save energy, while increasing annual production by 5,000 units over the current level, which is 25,000 units per year. The profit margin on a unit is $25. Current Machine: 150kW load; 24 hours/day 5 days/wk 52 weeks per year. The weekend load is 10kW (for the other two days in the week @ 24hrs per day). The current machine is expected to have a market value of $10,000 in four years. In order to meet the additional annual production of 30,000 units, the current machine would have to add Saturday (150 kW @ 24 hrs/day) to the new work week going forward. Proposed Machine 1: Initial cost for this machine including installation is $75,000, with a market value in 4 years of $20,000. Proposed Machine 1 will produce the following load profile and produce 30,000 units per year. Over a 24-hour day: (100 kW load for 4 hours, 75kW for 10 hours, and 50kW for 10 hours) 5 days/week 52 weeks per year. The weekend load is 5kW (for the other 2 days in the week @ 24 hrs/day). Proposed Machine 2: Initial cost for this machine including installation is $150,000, with a market value in 4 years of $29,000. Proposed Machine 2 will produce the following load profile and produce 30,000 units per year. Over a 24-hour day: (60 kW load for 24 hours) 5 days/week 52 weeks per year. The weekend load is 5kW (for the other 2 days in the week @ 24 hrs/day). Utility Rebate for Either New Machine: The local utility offers a one-time up-front rebate of $200 per kW load reduction. Do not confuse kW with kWh! See links at bottom of page 2. The rebate takes effect at the start of Year 1. The local utility costs are summarized below. The rates shown apply to the entire year indicated in each column. In reference to the table above, the peak billing period is from June 1 through August 31 each year. On \& off-peak rates are 24 hours per day, depending on the time of year. Note: Many electric utilities charge higher rates in the summer due to higher energy and demand loads caused by air conditioning and the increased loads on all refrigeration systems. See the important note and URLS at the bottom of this page. Note: We are using a 4-year time horizon. Your Task a. Develop a simple payback for the proposed system alternatives (page 1). Ycompany requires a two-year payback period for implementation-what is your recommendation? b. Develop a net present worth for the proposed systems (p. 1); assume a hurdle rate of 10% annual. What is your recommendation? c. Compare and contrast the two methods (a. and b.) of economic analysis. d. Develop a partial productivity for energy metric and calculate for each alternative (p. 1). e. Develop an energy intensity metric and calculate for each alternative (p. 1). f. Compare \& contrast the two methods (d. and e.) of expressing energy impact