The example presented in this blog further works out two scenarios side by side and calculates the Payback period of an expenditure as well. As usual, one need to consult Subject Matter Experts and get the advise on the inputs.
Problem StatementDecision is required whether to replace Sodium Vapour Lights with LED Lights.
Cash Flows are created on the basis of expert inputs which may be provided or obtained from Facility Management, Procurement and Electrical Engineering Departments. Risk Management part may also be deliberated with Accounts, Finance and Legal Departments and can also be reflected into the cash flow. The Excel workbook has been set in a user friendly setup and may be understood by even a casual Excel User.
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The following risk factors (not covered in the simulation) are also worth considerations/ evaluation. The scope of analysi…