Cases in Cost Management 3rd Edition by John Shank

Exercise 1

a) For the ESCO test market job, what is the present value of CFL bulbs to the hotel over the 15 years life of the fixture Energy savings and saving on bulb replacements, less the cost to retrofit all the fixtures, plus current expenditures for bulb replacement. This is the maximum price the hotel should be willing to pay BES for the conversion job.
b) What price should GINA charge BES for the CFL bulbs for the Copley Grand Hotel job
c) What price should GINA charge the hotel for replacement bulbs