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  • Comparison Summary..Rev.05

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    The document compares the cost analysis results of two options for district cooling: using an offsite District Cooling Provider (DCP) or building an Onsite DC Plant (ODC). The payback period for the ODC option is 15 years, while there is no payback period for the DCP since there is no capital cost considered. The net present value (NPV) of the DCP is negative $17 million and negative $2.5 million for the ODC. The internal rate of return (IRR) is not applicable for the DCP but is 9.6% for the ODC, below the proposed minimum IRR of 10%.

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    The document compares the cost analysis results of two options for district cooling: using an offsite District Cooling Provider (DCP) or building an Onsite DC Plant (ODC). The payback period for the ODC option is 15 years, while there is no payback period for the DCP since there is no capital cost considered. The net present value (NPV) of the DCP is negative $17 million and negative $2.5 million for the ODC. The internal rate of return (IRR) is not applicable for the DCP but is 9.6% for the ODC, below the proposed minimum IRR of 10%.

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    4 views1 page

    Comparison Summary..Rev.05

    Uploaded by

    Anonymous tgCsXLnhII
    The document compares the cost analysis results of two options for district cooling: using an offsite District Cooling Provider (DCP) or building an Onsite DC Plant (ODC). The payback period for the ODC option is 15 years, while there is no payback period for the DCP since there is no capital cost considered. The net present value (NPV) of the DCP is negative $17 million and negative $2.5 million for the ODC. The internal rate of return (IRR) is not applicable for the DCP but is 9.6% for the ODC, below the proposed minimum IRR of 10%.

    Copyright:

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    of 1

    comparison of Cost analysis Results for the different study options (DU1211)

    District Cooling Provider (DCP)

    DESCRIPTION

    Onsite DC Plant (ODC)

    Remarks

    The Pay Back Period for Each Option

    (Years)

    N/A

    15.0

    Payback N/A for DCP option, since no Cash Inflow considered to cover the capital cost (connection Charge)
    for the ODC option, the value is negative because the propsed minimum IRR is 10%, while the investment rate of return is maximum of 9.6% as per IRR method results

    The NPV for each Option

    -17,000,000

    -2,527,823

    - ve value means cash outflow +ve value means cash Inflow

    The IRR value for each option

    (%)

    N/A

    9.6%

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