The exercise is evaluate the economics of an energy upgrade project. The upgrade is financed by equity (= down payment) and debt. There are annual O&M expenses, a major upgrade in the year 12. The project variables are listed below. Lifetime is 20 years. The objective is to calculate the economic metrics: NPV, IRR, simple payback and discounted payback period. Capital cost Debt Equity Loan rate Loan term Inflation rate Energy escalation rate O&M Major upgrade ipu Annual Energy Savigns Cost of energy Discount rate $1,000,000:00 TIBOT CO 60% 40% 2% 10 years 2% 3.50% $1,000.00 per year erit ni) $25,000.00 in year 12 500,000 kWh/year $0.12 $/kWh 3% 42

The exercise is evaluate the economics of an energy upgrade project. The upgrade is financed by equity (= down payment) and debt. There are annual O\&M expenses, a major upgrade in the year 12. The project variables are listed below. Lifetime is 20 years. The objective is to calculate the economic metrics: NPV, IRR, simple payback and discounted payback period. The exercise is evaluate the economics of an energy upgrade project. The upgrade is financed by equity (= down payment) and debt. There are annual O\&M expenses, a major upgrade in the year 12. The project variables are listed below. Lifetime is 20 years. The objective is to calculate the economic metrics: NPV, IRR, simple payback and discounted payback period