=+Lost materials during installation (sludge that goes down the drain as the valve is changed over) 25 litres 25 litres Estimated production before replacement 5 000 litres 20 000 litres Hillspring Chemicals Ltd is concerned about the life-cycle cost of the two valves. It is also interested in reducing the environmental impact of its operations.

Required 1 Calculate the life-cycle cost of the two valves based on an estimated lifespan for the reclamation equipment of 20 years (100000 litres).