Chad Pty Ltd is preparing to design and implement sustainability systems and processes. You find (as the

Chad Pty Ltd is preparing to design and implement sustainability systems and processes. You find (as the environmental director) that energy is a key resource for business operations; first for heating water and second for operational and security lighting. Management of these key resources for business operations can save the company money. Therefore the first step is to measure the water flow at the premises. The company only operates their fruit and vegetable cleaning and production for 260 days of the year. You report directly to William South, the CFO.
Chad P/L is interested in saving water costs, so they have installed large underground water tanks that collect the rainwater from the roof system. These tanks are now full and operational.
The daily rinsing process for fruit and vegetables requires the tap to run for 40 minutes per day and use 11 litres of water flow per minute. The water is heated to 60^oC.  The table below provides the number of kWh required to heat one kilolitreof water to various temperatures.

Hot Water Temperature	kWh required make one kilolitreof hot water
45oC	56 kWh
50oC	62 kWh
60oC	77 kWh
70oC	98 kWh

Required: Please note all your answers should be to two decimal points (cents)

1. If the business uses water heated to 60^oC, assuming the electricity cost per kilolitre is $0.40 per kWh, calculate the annual electricity cost to the business associated with the heating of water used to 60^o                       (4 marks)
2. If the business uses water heated to 50^oC (assuming the electricity cost per kilolitre is $0.40 per kWh), calculate the dollar saving if this lower temperature is used.

                                                                                                                       (4 marks)

3. You are considering fitting the tap with a high pressure flow restrictor that will reduce water flow to 5 litres of water flow per minute.  You expect run the tap still for 40 minutes per day. Calculate the electricity cost and cost savingsif the reduced water flow was heated to (i) 60 degrees and (ii) to 50 degrees.                                                                       (4 marks)
4. Compare and describe the cost results, and provide an informal report (memo email) to your supervisor giving your recommendations of how your organisation should proceed. Discuss any non-financial factors that need to be considered. (You will be marked on spelling and grammar for this section d).                                                                                          (4 marks)