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1) I Year Year Discount % 10% System A Cash Flow Benefits Cost $10,000 $8,000 $5,000 $10,000 $15,000 $20,000 $23,000 System B Cash Flow Benefits

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1) I Year Year Discount % 10% System A Cash Flow Benefits Cost $10,000 $8,000 $5,000 $10,000 $15,000 $20,000 $23,000 System B Cash Flow Benefits Cost $16,000 $12,000 $10,000 $6,000 $12,000 $15,000 $23,000 $28,000 3 4 5 6 Using life cycle cost analysis, determine which system will be preferred. Using 'break-even' method, which system is preferred? And when does break even occur

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