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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

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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

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