2. LCCA/EAUW

Two new materials are being evaluated to coat the outside of buildings in a sustainable manner. Determine which material you would recommend for the new Trader Joes you are designing:

	EZ-coat	BestCOAT
Estimated life	8 years	10 years
Cost for material and installation	200	400
Annual O&M costs	75	50
Monetized annual value of the benefits of the different materials	124	125
Equivalent salvage value at end of life	50	0

a. Find the EAUW of the two options when the interest rate is 6%, which product would you recommend?

b. What is the maximum allowable interest rate where BestCOAT would still be considered as an option?

2. LCCA/EAUW Two new materials are being evaluated to coat the outside of buildings in a sustainable manner. Determine which material you would recommend for the new Trader Joes you are designing: EL-Coat 8 years 200 BestCOAT 10 years 400 Estimated life Cost for material and installation Annual O&M costs Monetized annual value of the benefits of the different materials Equivalent salvage value at 50 end of life 75 124 50 125 0 (a) Find the EAUW of the two options when the interest rate is 6%, which product would you recommend? (b) What is the maximum allowable interest rate where BestCOAT would still be considered as an option (Hint: Where EAUW is 2 0)