Business Case Evaluation - Existing Parking Deck Facility Lighting
3
TABLE 2
Summary of Net Present Value (NPV) Analysis (Discount Rate = 4%) (CY2012-CY2035)
Life Cycle = 50,000 hours
Life Cycle = 100,000 hours
Option
Net Present Value
Total Costs
Equivalent Annual
Costs (EAC)
Net Present Value
Total Costs
Equivalent Annual
Costs (EAC)
1
$6.4M
$0.42M
$6.4M
$0.42M
2
$6.1M
$0.41M
$4.8M
$0.32M
3
$6.3M
$0.42M
$5.2M
$0.36M
4
$6.7M
$0.44M
$5.2M
$0.34M
Note: NPV analysis includes salvage value; EACs do not.
Salvage value is the remaining value of an asset at the end of an
evaluation period based on its useful life. Straight-line depreciation was used to determine salvage values.
FIGURE 1
Comparison of Net Cash Flow, Future Year Costs, 50,000 hour Life Cycle Scenario (CY2012 – CY2035)
Capital Costs have been converted to Annual Debt Service Payments
$-
$2
$4
$6
$8
$10
$12
Cumulative Project Costs ($ Millions)
Status quo
Phased LED lighting change-out
LED lighting change-outtriggered by LED cost
One-time,full-scale LED lighting change-out