Calculate the Net Present Value and IRR of a lighting upgrade – the financial metrics used by CFOs and ESCOs to approve capital projects. Accounts for the time value of money, electricity escalation, and tax benefits.
Project investment
Up to $5/sq ft for commercial buildings
Federal + state corporate tax rate
Annual savings
Fewer lamp replacements with LED
Financial assumptions
Your organization’s hurdle rate
Please enter project cost and annual energy savings.
Net present value (NPV)
$0
0%
Internal rate of return (IRR)
0 yr
Discounted payback
0 yr
Simple payback
Annual cash flow schedule
YrCash flowDiscountedCumulativeNPV to date
NPV sensitivity – discount rate scenarios
Net project cost (after rebate)
Tax benefit (179D + depreciation)
Effective net investment
Year 1 total savings
Year 15 total savings (escalated)
Total undiscounted savings
Total discounted savings (PV)
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