1.1.5. Potential Risks/Costs

Try these first

1. 1.

   What does LCCA stand for?

   Hint

   Think about what lifecycle means and what you analyze in costs.

2. 2.

   Name one factor that contributes to higher upfront costs in green buildings.

   Hint

   Consider what makes green buildings expensive initially.

3. 3.

   What are the two primary categories of costs discussed in this section?

   • Upfront costs and operational savings
   • Initial costs and maintenance savings
   • Certification costs and regulatory costs

   Hint

   Think about the investments made before and after construction.

4. 4.

   True or False: Capital lock-in can prevent future investment flexibility.

   • True
   • False

   Hint

   Consider what happens when a lot of money is spent upfront.

5. 5.

   Evaluate a hypothetical scenario where a green building's upfront cost is ₹3,000 per m². Assuming operational savings of ₹150 annually, calculate the payback period and discuss its implications.

   Hint

   Remember, lower operational costs can make long-term investments more attractive.

6. 6.

   Analyze the impact of a technology learning curve that delays a project by six months, leading to increased costs. Calculate the overall financial impact of this delay if the total project cost was initially estimated at ₹5,000,000.

   Hint

   Consider how delays can ripple outward and affect overall budget.