LCCA Question An energy conservation option has a first cost of $30,000. It requires $2,000 per year maintenance and saves $5,500 per year in utilities. The system will last 10 years with no salvage value. What is the 10-year life-cycle cost assuming energy cost escalation of 4% annually, maintenance cost escalation of 2% annually, and a 5% discount rate? Use the interest rate table given below(Show all calculations please by hand, no computer)

Cash Flow Analysis First nst Equipment life Salvage value Energy savings Maintenance Discount rate (demolition) per year per year % per year escalation % per year escalation Savings or (Costs) for Year Incurred Instl. Net Present Value Year Energy Maint. Year Net annual Cumulative 4 6 10 Total discounted cash flow $