Based on your design project criteria, are there attributes other than economics that add benefit to your overall design? Are there attributes of your evaluated idea that may hurt your overall design?
Project Economics Analysis
Paper, Order, or Assignment Requirements
* IEEE format for the resources.
* Do not use the proposal resources, Just use it to understand the project we working on.
* Flow the steps of the assignment that I will upload a long with the proposal.
Part I: Equipment, Material & Installation Costs (10 pts.):
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Individually, estimate the material and installation costs for at least one promising design idea for your project. Do not duplicate design ideas of your teammates.
Using a table, line item all equipment, material, labor and utility costs to install your design in your assigned building.
Cite all sources of information using IEEE formatting (phone or email correspondence; reported cost estimates, quotes, software, websites, etc. ) Ask yourself how accurate your cost information is. Give yourself time to gather all of this information!
Where relevant, use the cost estimation techniques mentioned in class (inflation adjustments to historical costs, economy of scale).
Part II: Ownership Costs (10 pts.):
Individually, create a cash flow diagram (bar chart in excel) illustrating the cost of ownership to NAU. Your cash flow diagram should consider the following elements.
Payments to cover cost of equipment, material and installation costs (Part I). Decide if NAU will need to take on debt to install your idea or pay upfront for cash.
Net maintenance costs. This should include labor, materials, or costs for spare parts. The lifetime of your device needs to be understood!!!
Net energy savings. Using the current price of electricity or natural gas, consider what the annual energy savings will be from your design idea. Keep in mind, for a technology like solar PV, the units of energy saved (mmBTU or kWh) may decrease with time. You will need to understand the performance of your systems over time.
Potentially the disposal or reclamation costs of end of life equipment.
Part III: Simple payback period and net present worth (20 pts.):
3a) Determine the simple payback period (PBP) of your chosen design idea. Comment on the meaning of your calculated PBP.
3b) Determine the NPW of your chosen design idea. Assume a 3% discount rate and a utility price escalator of 3%. Comment on the meaning of the NPW.
3c) Using the parameters in part 3b, calculate the cost/benefit ratio of your design idea. Comment on the meaning on the C/B ratio.
3d) Play with the discount rate and utility price escalator in your calculation of 3b. If there were a lower utility price escalator, how does your NPW change?
3e) Based on 3a-3d, comment on the economic feasibility of your design idea.
3f) Based on your design project criteria, are there attributes other than economics that add benefit to your overall design? Are there attributes of your evaluated idea that may hurt your overall design?