preview

Analysis Of Mechanical Air Conditioning

Decent Essays
Open Document

Client has decided to investigate the potential to improve efficiency of the current mechanical air conditioning and ventilation system to an office tower project being developed and planned.
Assessment will be reviewing three (3) design options as noted in section 4.1 and results presented in section 6 of this report.
The client has noted some parameters and requirements he would like to ascertain through the assessment which is as follows:
Client Requirements

 Electricity cost is $0.15/kWh
 The client’s opportunity cost is 10% nominal
 Interest Rate - 10%
 Inflation Rate – 4%
 Real rate (10% - 4%) = 6%
 The client’s investment period is 10 years
5.2 Risk
Risks noted by the three design options and as dictated by the …show more content…

From the LCC analysis the results demonstrated a feasibility to pursue alternative design options 1 or 2, as the client seeks to utilise the Cradle to Gate material mentality.

Hard Benefits
The present value sum of all costs incurred over the life of the investment noted long term viability for primarily Option 1 when compared to the other design options.
As noted in the table above, the initial Capital Costs appeared quite appealing for the initial base design option but when coupled with the long term (10-year period) operational costs at the assumed 6% discount rate, Option 1 slightly edged out over Option 2. This standing increased furthermore when a sensitivity analysis was completed as noted in section 6.1.1, which noted an even greater advantage if the cost of energy was assumed at $0.15 per kWh or if discount rate was increased to 11%.
Design Option 1 attempts to adopt a design that caters for a full

Get Access
Related
Get Access