Determine which system is more economical on a life cycle costing basis. System A Svstem B $240,000 20,000 12 years Initial cost Installation Useful life Operators needed Operating hours Operating wage rate Parts and supplies cost (% of initial cost) Power Escalation of operating costs Mean time between failures Mean time to repair Maintenance wage rate Maintenance escalation rate Desired rate of return Tax rate S300,000 23,000 12 years 2100 S20 per h 1% 8 kW at 10c/kWh 6% 600 h 35 h S23 per h 6% 10% 45% 2100 20 per h 2% 9kW at 10c/kWh 6% 450 h 45 h $23 per h 6% 10% 45% Determine which system is more economical on a life cycle costing basis. System A Svstem B $240,000 20,000 12 years Initial cost Installation Useful life Operators needed Operating hours Operating wage rate Parts and supplies cost (% of initial cost) Power Escalation of operating costs Mean time between failures Mean time to repair Maintenance wage rate Maintenance escalation rate Desired rate of return Tax rate S300,000 23,000 12 years 2100 S20 per h 1% 8 kW at 10c/kWh 6% 600 h 35 h S23 per h 6% 10% 45% 2100 20 per h 2% 9kW at 10c/kWh 6% 450 h 45 h $23 per h 6% 10% 45%