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Question 12 Part B After the analysis of energy consumption for the coffee shop, two options have been identified for reducing the air conditioning load.
Question 12 Part B After the analysis of energy consumption for the coffee shop, two options have been identified for reducing the air conditioning load. Both involve the retrofit of shading devices. The costs of the two options, A and B are as follows: Option A Option B Cost of retrofitting the shade devices $ 14,000 $28,000 Expected annual savings in energy bills $ 2,700 $ 4,600 Additional annual maintenance costs $ 400 $ 800 the Net Present Value for each proposed option over the expected 10- Ignoring inflation, and assuming a discount rate of 7%, what year life? What is the simple payback period each option
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