APPENDIX 8

- A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBACK PERIOD SPREADSHEET

TABLE OF CO NTENTS

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- A.1 DEFINITIONS

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- A.2 BASIC INSTRUCTIONS

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8 A

- iAPPENDIX 8

- A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBA CK
PERIOD SPREADSHEET

8

- A.1 DEFINITIONS

The interested reader can examine and reproduce detailed results of the U.S. Department of Energy’s ( DOE’s ) life

- cycle cost ( LCC ) and payback period ( PBP ) analysi s for commercial clothes washers by using Microsoft Excel spre adsheet s available on DOE ’s website at http://www1.eere.energy.gov/buildings/appliance_standards/residential/clothes_washers.html

. To fully execute the spreadsheet s requires both Microsoft Excel and Crysta l Ball software. Both applications are comme rcially available. Crystal Ball is available at www.decisioneering.com

.

The latest version of the workbook , which is post ed on the DOE website

, was tested using Microsoft Excel 200 7

. The LCC and PBP workbook for commercial clothes washers comprises the following workshe ets.

Summary Presents the results of an analysis in terms of a verage LCC

, LCC

s avings

, and median

, average , and undefined PBP for both front

and top

- loading washers. A table includes, for each efficiency level considered

, i nstalled p rice ; life time o perating c ost ; LCC ; average savings ; and the percentage of customers that w ould incur a net cost, no impact, or net savings from each standard level

. T he user

can stipulate three parameters for a simulation run: whether the AEO energy price trend reflects an economic case that is reference, low

- growth, or high

- growth (re ference is de fault) ; and the number of simulation runs to be performed within a range of 100 0

– 1 0,000 (10,000 is default).

LCC & Payback L ists the input value s used to calculat e LC C and PBP. Parameters include fuel type for water heating and clothes drying ; annual numbers of cycles or loads; product lifetime ; the discount rate applied to costs and savings; energy and water prices; the base

case efficiency distribution; product price and total installed cost; and energy and water use

. The result is annual and cumulative cash flow for both front

- and top

- loading clothes washers operating at each efficiency level.

Energy & Water Use Contains per

- cycle energy and water use data at each efficiency level broken down into washer machine energy use, dryer energy

use (gas or electric) ; water heating energy use (electric or gas) ; and both total and hot water use. Identifies the parameters exported to the LCC and PBP analysis.

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- 1Base

- Case Efficiency Gives the market shares for efficiency levels in the base case. Distribution

Equipment Prices Develops total installed cost for clothes washers in 20 1 2 $

. This sheet provid es baseline and incremental manufacturer costs, retail price, sales ta x, and installation cost for both product classes and each efficiency level. Includes the assumptions used about mark ups and sales tax.

Energy & Water Price s Contains the regional prices in 20 1 2 $ for electricity, gas, and water

u sed in the LCC and PBP analysis.

Energy Price Tren d s Contains the electricity and natural gas price trends for the reference, high, and low economic gro wth scenarios based on AEO 2013

.

Water Price Trend Contains the historical water price trend that is used to forecast future water price

.

Discount Rate Contains data from which an average discount rate and a distribution o f discount rates are determined

.

Forecast Cells Gives details regarding base

- case efficiency distributions for both classes of clothes washers. Median, minimum, maximum, and average values are given, along with 5 th , 25 th , 50 th , 75 th

, and 95 th percentile values. Included are product prices and details of the LCC and PBP ( LCC sav ings in terms of money, energy, and water and the percentages of customers that would experience a net cost, no impact, or net savings from each efficiency leve l )

.

Lifetime Present s the average lifetime

, in years

, for front

- and top

- loading commercial clothes washers, the Weibull parameters used for the survival function , and a graph of the Weibull retirement function for residential clothes washers

.

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- A.2 BASIC INSTRUCTIONS

Basic instructions fo r operating the LCC spreadsheet are provided below.

1. After download ing the LCC file from DOE’s w eb site

, use Microsoft Excel to open it . At the bottom of the workbook , click on the tab for the sheet labeled Summary

.

2. Use Excel’s “View/Zoom” command in the top menu bar to change the size of the display so that it fit s your monitor.

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- 23. U s e the graphical interface in the spreadsheet to choose parameters or enter data. You can change the default choices f or the three inputs listed under "User Input " ( energy price tr end , start year, and number of simulation runs)

. To change a default input

, select the desired value from the drop

- down choice s by the input box.

4. After selecting the desired parameters, click the “Run” butt on. The spreadsheet will minimize until the simulation is complete, and will then re

- open with the updated results.

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