Determine which system is more economical on a life cycle costing basis. System A $300,000 23,000 12 years 1 2100 $20 per h 1% 8 kW at 10/kWh 6% 600 h 35 h $23 per h 6% System B $240,000 20,000 12 years 2 2100 $20 per h 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 2% 9 kW at 10/kWh 6% 450 h 45 h $23 per h 6% 10% 45% 10% 45%