1.2. Sample Payback Calculation

Try these first

1. 1.

   What is the payback period for the green building in our example?

   Hint

   Look at the annual savings compared to the initial costs.

2. 2.

   What does NPV stand for?

   Hint

   It's important for assessing investment profitability.

3. 3.

   What is a green building's average payback period according to the example?

   • 1 year
   • 2.5 years
   • 10 years

   Hint

   Recall the values from the payback section.

4. 4.

   True or False: Traditional buildings typically have a quicker payback period than green buildings.

   • True
   • False

   Hint

   Consider the information about payback period comparisons.

5. 5.

   If a green building’s operational savings increase by 10% each year, calculate the payback period over a decade considering an initial cost of ₹2,200.

   Hint

   Think of the compounding effect on savings.

6. 6.

   Analyze the long-term impacts of non-monetary benefits such as improved health on the return on investment for green buildings.

   Hint

   Broaden your thinking to include social metrics and benefits.