NRC 561 Analytical Methods Cash Flow and Benefit Cost Analysis Energy Efficiency Investment Decision \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Inputs/Assumptions } \\ \hline Initial Cost & 22000 \\ \hline Annual Cost & 1250 \\ \hline Energy Cost Savines (Vr 1) & 4000 \\ \hline Energy Cost Escalation & 3K \\ \hline Grant/Incentive Funding & \\ \hline \end{tabular} Cash Flow Table \begin{tabular}{|r|l|l|l|l|} \hline \multicolumn{1}{|r|}{ Year } & Initial Cost & Annual Cost & Savings & NetCashFlow \\ \hline 0 & & & & \\ \hline 1 & & & & \\ \hline 2 & & & & \\ \hline 3 & & & & \\ \hline 4 & & & & \\ \hline 5 & & & & \\ \hline 6 & & & & \\ \hline 7 & & & & \\ \hline 8 & & & & \\ \hline 9 & & & & \\ \hline 10 & & & & \\ \hline \end{tabular} Evaluation Table \begin{tabular}{|r|r|r|} \hline Discount Rate & NPV & B/CRatio \\ \hline OXX & & \\ \hline 7x & & \\ \hline ISS & & \\ \hline IRR & & \\ \hline & & \\ \hline \end{tabular} Technical consulants have determined that an esergy efficiency equipment for a manutacharing process costs $22,000 and requares asdiboeal maintenance costs of $1250 year. The energy coat raviegs ffeem the mearure amount to $4000 in the first year, and these eneray cost saving evcalate at 3% per year. The measure hifeime is 10 years. RHE LND of foch jwar ) Evaluate whetser the manufacturing company abould make this energy efficiency isveitment. Coesider the lifetime cash flows of this investment over a range of descount rates asd complete the toble belogy. the tuble below: \begin{tabular}{|c|c|c|} \hline Dhcount Rate & Net Dresent Value & Benefit Cost Ratio \\ \hline os & = & \\ \hline & s & \\ \hline 15N & 5 & \\ \hline ter= & 50 & 1.0 \\ \hline \end{tabular} Palky Rerpacthe would be pecessary to expect adoption by the induitar? \begin{tabular}{|l|l|} \hline Incentive Value & Specilyincentivevaluetothenearesthundreddollars \\ \hline 5 & \\ \hline \end{tabular}