information to use. Carbon emissionsbefore is 12 ton

Carbon emissionsafter is 4.3 tons

Carbon emissions reductions through energy retrofitting measures (optional question/ additional grading points): Due to the low cost of energy in Canada, energy retrofitting measures are (usually) not financially profitable. A carbon emissions reduction financial incentive could provide additional motivation to homeowners to undertake such energy savings measures. a. Evaluate the proposed energy retrofitting measures based on a Life Cycle Costing (LCC) analysis, if an incentive of 50$/ton CO2,red is available ($50 for every ton CO2 that was reduced through the energy retrofitting measures) for the carbon emissions savings (in tonnes CO2) that were achieved through your energy retrofitting measures. The financial incentive is subject to a 2% increase every year. An increase on the natural gas unit price and electricity of 3% annually and an inflation rate of 2% is expected. (Hint: add the carbon emissions incentive value to the inflows of case 3 previously and find the new NPV, or PW). b. It is argued that if the value of the carbon emissions reductions incentive is increased, more homeowners will be willing to undertake energy retrofitting measures. In the case that your NPV under a) previously is negative, what should be the value of the carbon incentive (in $/ton CO2,red) so that the NPV of your cash flow is zero? (Hint: let x= value of the incentive in $/ton CO2,red, set the NPV to zero and solve for x)