A new air-conditioning system is being planned for a UNZA theatre hall with options of two approaches, conventional (C)
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A new air-conditioning system is being planned for a UNZA theatre hall with options of two approaches, conventional (C)
A new air-conditioning system is being planned for a UNZA theatre hall with options of two approaches, conventional (C) and energy-efficient (EE). Information for the project is given in table Q2. If the EE-approach is being pursued: (a) Evaluate the net present value (NPV) and on the basis of the NPV, determine if the EE-approach is economically viable. (b) Evaluate the internal rate of return (IRR) expected for the EE-approach and comment on IRR in relation to the discount rate. Table Q2 - Project information Type Energy cost Capital cost (K/m) K280 K300 Energy consumption (kWh/m/yr 12 8 Project Interest Cost life/loan rate/discount escalation of period (yr) rate (%) energy (%) 15/15 18/20 5 с EE K2.00/kWh
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