1 Time Value of Money Luenberger

Please read Chapter 1 & 2 of Luenberger, Investment Science. Here is a link to chapter 1. Here is a link to chapter 2.

  • How would you describe the equivalence or comparison principle?
  • Describe in your own words present value and future value and give an example that you are familiar with.

2 Present Value

You have a stream of payments

  • 1000 at the start of year 1

  • 2000 at the start of year 2

  • 1000 at the start of year 3

  • What is the equivalent value of this stream of payments assuming an interest rate of 5%?

  • Draw a graph of the cash flows

  • at the start of year 0?

  • at the start of year 3?

3 State Carbon Emissions

Please read the linked document below from the US Energy Information Administration (EIA) and answer the following questions:

  • What factors cause higher and lower emissions per capita in different states?
  • Do you think your emissions are higher or lower than the average for California and why?

Energy-Related Carbon Dioxide Emissions by State, 2005-2016

4 SSU Electricity Emissions Scenarios

Sonoma State University uses approximately 16 million kWh of electricity per year. What are the hypothetical yearly carbon emissions in metric tons due to electricity if SSU uses

  • Coal-fired electricity (2.21 lb CO2/kWh)
  • PG&E electricity (0.524 lb CO2/kWh)
  • Sonoma Clean Power Evergreen (46 lb CO2/MWh)

5 Capital Recovery Function

You are taking out a $30,000 loan that is paid in yearly payments. The annual percentage rate (APR) is seven percent. If you pay this loan back over 5 years, what is your yearly payment?

6 Cost Conserved Energy Article

Please read the linked article introducing the cost of conserved energy (CCE) and answer the following questions.

  • What is the question the cost of conserved energy (CCE) aims to answer?
  • What is the purpose of the capital recovery formula used in the CCE formula?

7 Cost of Conserved Energy Upgrade

You purchase a $20,000 energy upgrade using a 5% loan over 10 years with annual payments. As a result, you will save 30,000 kilowatt-hours of energy each year.

What is the cost of conserved energy for this upgrade in units of USD per kWh?

8 Policy Reflection

Pick one of the policies that we reviewed in class.

  • Why is that policy interesting to you?
  • How would you categorize the policy using our definitions from class?
  • What about the policy are you interested in learning more about?

9 Avoided Carbon

You’d like to reduce your electricity carbon emissions and you’ve decided to switch electricity sources.

If you consume 2000 kWh per year, how much carbon would you avoid by switching from PG&E (0.524 lb CO2/kWh) to Sonoma Clean Power EverGreen (46 lb CO2/MWh)?

10 Missouri PACE Program

Please read the following Propublica article

  • How did the results of the policy stray from the intentions of the policy?
  • What would you propose to prevent these problems from happening in future policies?

11 Solar Loan

You want to install a 100 kW system and your total installation cost is $1/W. You get a 15-year loan at a 3% annual rate for the entire amount.

What is your yearly loan payment?

12 Bus Milage

What is the carbon intensity in units of pounds CO2 per mile per passenger for a 3.4 mpg diesel bus carrying 40 people?