Financial Analysis

CAPITAL & OPERATING COSTS

A simple comparison can be made of just the improvement cost and the input energy operating cost for each of the scenarios. Costs of improvements were estimated based on information gathered from MEANS 2014 and or historical experience and data.

Option 2, Variable Refrigerant Flow, has the lowest initial improvement cost, at $41 per square metre. However, the Hydronic Heating with Packaged Cooling, Option 1, has lower operating costs at $5.98 per year per square metre. A summary of costs are shown in 7 below.

Table 7 - Summary of Improvement and Energy Operating Costs

ENERGY COSTS

Electricity and natural gas are the major input energy costs of operation and have been determined by the energy simulation and are based on the unit rates shown on the Energy Modelling Assumptions page.

MAINTENANCE

Regular scheduled maintenance currently includes replacement of filters and light bulbs. Option 1 would also include annual service inspections. Estimates on the required maintenance have been based on information on current activities provided during the site visit. Cost estimates for maintenance have been included in the net present value calculations provided in Appendix D.