Professional Documents
Culture Documents
LEGRAND
LEGRAND
3. What was the price per ton of carbon avoided with energy savings?
Avoided Cost per ton of carbon: $7.78
4. What reasons could be offered for not pursuing this project?
a. If the Duke Energy withdraws incentives i.e. Smart Saver Incentive Program is
stopped. IRR for 5 years is 3% which is less than discount rate (10%). If Legrand is
looking to recover its investment in 5 years then it should not go for this project.
b. If government federal incentives are withdrawn i.e. not extended. IRR for 5 years
is 7% which is less than discount rate (10%). If Legrand is looking to recover its
investment in 5 years then it should not go for this project.
c. If both above incentives are withdrawn, IRR for 5 years is -1, which is less than
discount rate (10%).
%). If Legrand is looking to recover its investment in 5 years then it should not go
for this project.