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Cost-Benefit Analysis and Decision Making at Johnson Controls Requirements: Conduct a cost-benefit analysis for Johnson Controls' new energy efficiency project, including installation costs and projected

Cost-Benefit Analysis and Decision Making at Johnson Controls

Requirements:

  1. Conduct a cost-benefit analysis for Johnson Controls' new energy efficiency project, including installation costs and projected energy savings.

Project Details

Initial Investment ($)

Annual Energy Savings ($)

Payback Period (years)

Energy Efficiency Upgrade

10,000,000

2,000,000

5

  1. Calculate the project's net present value (NPV) using a discount rate of 8%.
  2. Evaluate the environmental benefits and sustainability impact of the energy efficiency project.
  3. Recommend whether Johnson Controls should proceed with the project based on cost-benefit analysis outcomes.

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