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The HVAC equipment cost and installation are $100,000 and the annual maintenance cost of the HVAC system is $10,000, where the annual energy cost savings
The HVAC equipment cost and installation are $100,000 and the annual maintenance cost of the HVAC system is $10,000, where the annual energy cost savings is $45,000 and the salvage value of the equipment after 5 years is $20,000. Considering the annual Interest rate: of 12% and Tax rate: of 34%, Calculate the net present work (NPW) and rate of return (ROR) for the energy efficiency project for 6 years period. (use MACRS depreciation method).
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