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Calculate the comparative life cycle cost in terms of Annual Equivalent and Present Value of the following two buildings, using only the data provided. The
Calculate the comparative life cycle cost in terms of Annual Equivalent and Present Value of the following two buildings, using only the data provided. The opportunity cost of capital is assumed to be 10%. Both buildings provide a similar size and accommodation. Building A High initial cost building with a low cost-in-use 1. Initial cost $80,000.00 2. Repairs $600.00 every 10 years 3. Maintenance $400.00 per annum 4. Heating, lighting etc$1300.00 per annum 5. Demolition $3500.00 6. Project life 10 years Building B Low initial cost building with a high cost-in-use 1. Initial cost $50,000.00 2. Repairs $1600.00 every 5 years 3. Maintenance $1000.00 per annum 4. Heating, lighting etc$3100.00 per annum 5. Major Modifications every 15 years $11000.00 6. Demolition $5500.00 7. Project life 20 years
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