1. Use the Excel spreadsheet provided to compute the payback period, NPV, and IRR based on the cost SAVINGS from using the alternate Design and the LED Design system over the typical Design system.

2. Based on your results in question 1, which lighting design system would you recommend to the GoGreen Supercenter? Be sure to include both the quantitative and the qualitative factors you would consider in evaluating the three designs.

GoGreen Supercenter - Energy Savings and Parking Lot Lighiting System Case
LED Lighting Cost Analysis
Cost of capital		6%
Luminaire Prices
Typical			$ 41,000
Alternate			$ 51,000
LED			$ 94,000
					Total Pole	Luminaire	Total
Total Installation Costs (including Luminaire costs)	# of Poles	Per Pole	Cost	Prices	Costs
Typical			23	$ 1,600	$ 36,800	$ 41,000	$ 77,800
Alternate			33	$ 1,600	$ 52,800	$ 51,000	$ 103,800
LED			33	$ 1,600	$ 52,800	$ 94,000	$ 146,800
			Annual		Annual
Total Electricity Costs		kWh	$/kWh	Costs
Typical			233,000	$0.09	$ 20,970.00
Alternate			161,000	$0.09	$ 14,490.00
LED			98,000	$0.09	$ 8,820.00
			Annual
Annual Maintenance Costs	Costs
Typical			$ 3,476.00
Alternate			$ 5,476.00
LED			$ 1,840.00

			t	0	1	2	3	4	5	6	7	8	9	10
Typical
Total Installation costs		$ 77,800
Annual electricity costs			$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00	$ 20,970.00
Annual maintenance costs			$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00	$ 3,476.00
Total Life Cycle costs			$ 77,800	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446	$ 24,446
NPV (Typical)			$ 257,724.69	=NPV(D3,F35:O35)+E35
			t	0	1	2	3	4	5	6	7	8	9	10
Alternate
Total Installation costs		$ 103,800
Annual electricity costs			$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00	$ 14,490.00
Annual maintenance costs			$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00	$ 5,476.00
Total Life Cycle costs			$ 103,800	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966	$ 19,966
NPV (Alternate)			$ 250,751.50	=NPV(D3,F45:O45)+E45
			t	0	1	2	3	4	5	6	7	8	9	10
LED
Total Installation costs		$ 146,800
Annual electricity costs			$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00	$ 8,820.00
Annual maintenance costs			$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00	$ 1,840.00
Total Life Cycle costs			$ 146,800	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660	$ 10,660
NPV (LED)				$ 225,258.53	=NPV(D3,F55:O55)+E55

NPV with Cost of Capital at 6%:

Typical: $257,724.69

Alternate: $250,751.50

LED: $225,258.53

Payback Period:

Typical:

Alternate:

LED:

IRR:

Typical:

Alternate:

LED: