Calculate the life-cycle costs for the two cases (2 percent decrease, 2 percent increase in productivity) using data from Question 1 for a 5 percent discount rate and 15 percent discount rate.
Question 1
Assume the option in Question 2 is installed in a building with 200 occupants, average personnel cost of $60,000 per year. If the device interferes with temperature control, resulting in a 2 percent decrease in productivity, what would the simple payback be?
Question 2
An energy conservation option has a first cost of $50,000. It requires $4000 per year maintenance and saves $10,000 per year in utilities. What is the simple payback period for the option?
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