Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Perform a life cycle cost analysis by computing both the present worth and the equivalent annual worth perform a life cycle cost analysis by computing

Perform a life cycle cost analysis by computing both the present worth and the equivalent annual worth

image text in transcribed

perform a life cycle cost analysis by computing both the Present Worth (PW) and the Equivalent Annual Worth (EAW) or Costs (EAC). Alternative 1 Remain Replace Units 5 Years Re-Roof 10 Years salvage value after 25 Years Annual Energy Consumption (Cost) Maintenance/ Repair Costs/Year Annual Costs A1 ternative 2 Renovate (2 00,000 square feet) Renovation Construction Cost Re-Roof 10 Years salvage value after 25 Years Annual Energy Consumption (Cost) M aintenance/ Repair Costs/Year Annual Costs Alternative 3 - Build New (180,000 SF) New Construction Cost Demolish Existing salvage value after 25 Years Annual Energy Consumption (Cost) Maintenance/ Repair Costs/Year Annual Costs The economic criteria that are the same for all of the alternatives are as follows: Project life cycle 25 years Interest Rate 10% compounded annually Inflation approach Constant dollars Staffing costs escalation $325,000/ year cost, S 250,000 850,000 cost, S 50/SF 250,000 750,000 cost, S 120/SF 50/SF 650,000 800,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Law Principles For Today's Commercial Environment

Authors: David P Twomey, Marianne M Jennings

2nd Edition

0324303947, 9780324303940

More Books

Students also viewed these Economics questions