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Legrand: Lightening Their (Electricity) Load
Romero-Hernandez, Omar , David Hirsch, and Sergio Romero
Publication date: 2/11/2015, pages 1-13

This case illustrates the factors that Tim Travis, the maintenance lead for Legrand North American, must consider in a capital investment decision. Legrand, a France-based multi-national company, is considering implementing its own internal energy efficiency program to achieve cost and environmental savings and to meet the new standards established under the U.S. Department of Energy’s Better Buildings Challenge. The case examines the capital investment decision, how tax policies promoting energy efficiency influence it, and how to measure the return on capital investment through the payback method, internal rate of return, and net present value. A cost/savings analysis is also examined.
 


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