In September 2015, a 3.45 megawatt cooling,heating, and power (CHP) system was placed in intooperation for Southeast Regional Hospital with 360beds. The CHP system was part of a new 20,000 sq.ft. central utility plant that provided the 800,000 sq. ft.health-care facility with cooling, heating and power.By centralizing all of the utilities in one location, thehospital accrued significant energy savings, as wellas improved maintenance efficiency. The financialfacts related to the project are summarized as• Installed cost: $2.5 million• Annual energy cost savings: $786,000• Annual O&M costs: $233,000• Project service life: 15 years• Salvage value: $200,000At an interest rate of 8%, what is the net savings perdollar invested?
In September 2015, a 3.45 megawatt cooling,
heating, and power (CHP) system was placed in into
operation for Southeast Regional Hospital with 360
beds. The CHP system was part of a new 20,000 sq.
ft. central utility plant that provided the 800,000 sq. ft.
health-care facility with cooling, heating and power.
By centralizing all of the utilities in one location, the
hospital accrued significant energy savings, as well
as improved maintenance efficiency. The financial
facts related to the project are summarized as
• Installed cost: $2.5 million
• Annual energy cost savings: $786,000
• Annual O&M costs: $233,000
• Project service life: 15 years
• Salvage value: $200,000
At an interest rate of 8%, what is the net savings per
dollar invested?
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