Supporting Green Decisions With Financial Simulations

“Nothing is more powerful than an idea whose time has come.”
Victor Hugo

Sustainability is the idea of which the time has come. In earlier posts Decision Making Through  Life Cycle Costing- A Simple Practical Example  and Life Cycle Costing-2: A Practical Project Feasibility Example

Solutions  were worked out with side by side generating the cash flows and evaluating the Present Worths of the two alternate cash flows. 

The life now is not as simple as say a decade ago when the above solutions were evolved and accepted. The clients are more demanding and we have numerous options & better software tools. Most importantly passionate green professionals have to strive and inch all solutions towards sustainability. 


FOCUS: Supporting Green Decisions With Financial Simulations


Sheer inertia and lack of qualified professionals in the Indian Construction Industry are main factors that inhibit innovations. So business goes as usual......no more! With increasing transparency and environmental awareness,the older business models have collapsed forcing the real estate industry to come to a virtual halt. 


But the requirements of the sector specially for the affordable housing and repairs and retrofitting of the old and not so old structures are huge.The Government Agencies and NGOs can only play the role of a catalyst. The private player would change and innovate only when a more profitable choice is available. As the sector is devoid of engineering talent,Green options must be made hugely profitable, at least till such a time reasonable capacity in industry is built.This should be possible with suitable and effective policy instruments.  


Problem Statement: To generate and present numerous scenarios for supporting a greener solution.

Taking our requirement for thermal comfort, say we have Air Conditioning  procurement options for 3 to 5 star rated machines and we  also have choices for types of insulations for energy savings.

A word of caution as usual: All outputs are as good as the inputs and processes. 

The excel file is macro free. To Download Please click the link below.

 Simple Life Cycle Costing With Scenarios

  
The following required Excel skills are intuitive and can easily be learnt.
  1. Creating Scenarios
  2. Showing Scenarios
  3. Scenario Summary
  4. Conditional Formatting





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