Answer Options
A.
**Executive Summary (≈48 words)**
The council proposes installing solar street lights to reduce energy costs and carbon emissions. This report evaluates the financial viability and environmental impact, concluding that the project is feasible within the council's budgetary constraints.
**Cost‑Benefit Analysis**
- Installation cost: £12,500
- Annual electricity saving: £1,800
- Annual maintenance: £200
- Net annual saving: £1,800 + £200 = £2,000
- Pay‑back period: £12,500 ÷ £2,000 ≈ 6.25 years (≤ 8 years)
**Environmental Impact Assessment**
- Annual energy saved: 3,600 kWh
- CO₂ reduction per kWh: 0.5 kg
- Total CO₂ reduction: 3,600 × 0.5 = 1,800 kg (1.8 tonnes) per year
**Recommendation**
Given a pay‑back period of under eight years and an annual reduction of 1.8 tonnes of CO₂, the installation of solar street lights is financially and environmentally justified. The council should proceed with procurement and schedule installation for the upcoming fiscal year.
B.
**Executive Summary (≈48 words)**
The council proposes installing solar street lights to reduce energy costs and carbon emissions. This report evaluates the financial viability and environmental impact, concluding that the project is feasible within the council's budgetary constraints.
**Cost‑Benefit Analysis**
- Installation cost: £13,000
- Annual electricity saving: £1,800
- Annual maintenance: £200
- Net annual saving: £1,800 - £200 = £1,600
- Pay‑back period: £13,000 ÷ £1,600 ≈ 8.13 years (exceeds 8 years)
**Environmental Impact Assessment**
- Annual energy saved: 3,600 kWh
- CO₂ reduction per kWh: 0.5 kg
- Total CO₂ reduction: 3,600 × 0.5 = 1,800 kg (1.8 tonnes) per year
**Recommendation**
Because the pay‑back period exceeds eight years, the project is not financially justified despite environmental benefits. The council should reconsider alternative energy solutions.
C.
**Executive Summary (≈48 words)**
The council proposes installing solar street lights to reduce energy costs and carbon emissions. This report evaluates the financial viability and environmental impact, concluding that the project is feasible within the council's budgetary constraints.
**Cost‑Benefit Analysis**
- Installation cost: £12,500
- Annual electricity saving: £1,600
- Annual maintenance: £200
- Net annual saving: £1,600 - £200 = £1,400
- Pay‑back period: £12,500 ÷ £1,400 ≈ 8.93 years (exceeds 8 years)
**Environmental Impact Assessment**
- Annual energy saved: 3,600 kWh
- CO₂ reduction per kWh: 0.5 kg
- Total CO₂ reduction: 3,600 × 0.5 = 1,800 kg (1.8 tonnes) per year
**Recommendation**
The pay‑back period is longer than eight years, making the investment unattractive financially, although it still offers significant CO₂ reductions. The council should explore subsidies or cost‑sharing options.
Correct Answer
D.
**Executive Summary (≈48 words)**
The council proposes installing solar street lights to reduce energy costs and carbon emissions. This report evaluates the financial viability and environmental impact, concluding that the project is feasible within the council's budgetary constraints.
**Cost‑Benefit Analysis**
- Installation cost: £12,500
- Annual electricity saving: £1,800
- Annual maintenance: £200
- Net annual saving: £1,800 - £200 = £1,600
- Pay‑back period: £12,500 ÷ £1,600 ≈ 7.81 years (≤ 8 years)
**Environmental Impact Assessment**
- Annual energy saved: 3,600 kWh
- CO₂ reduction per kWh: 0.5 kg
- Total CO₂ reduction: 3,600 × 0.5 = 1,800 kg (1.8 tonnes) per year
**Recommendation**
Given a pay‑back period of under eight years and an annual reduction of 1.8 tonnes of CO₂, the installation of solar street lights is financially and environmentally justified. The council should proceed with procurement and schedule installation for the upcoming fiscal year.