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