PILULU PIUMINI # 26 Lifecycle Costing (LCC) & Facility Engineering & Management - ENGR155-01 Victor and his team work in the facilities engineering and construction department for a local university. They have been provided (2) options to consider regarding the upkeep functionality, and overall performance of an older structure on campus tearing the end of its lifecycle. Solution (A) - Major renovation to the existing structure. Solution (B) - Demolition & New construction of the aging structure completely To assist in evaluating both options, a lifecycle costing report (T.CC) has been prepared below. Given the following information: 1.) Solve using factor nolation & compound interest tables. 2.) Solve by creating a cash llow for the 15-year study period, the use nel present value (NPV) **Must Use Excel 3.) Utilizing the NPV analysis, which alternative (A or B) is the better solution that Victor and his team should consider? Why? * Hint Use Market Discount rate of 8%. Total Cost Year Year 1 11 SALE Year 12: Year 13: Year 14 Year 15 SOLUTION A RENOVATION $4,700,000 Renovation Costs (YU) Retrofit Replacement 54,700,000 S600.000 -S600.000 Operations & Maintenance S4.500.000 0.3 Will 1% scalation ya 0.3 walli 1 xcalao al 0.5 with 1% scallout 0.5 with 1% escalao PCL ya 0.3 watu 19 scalaticu paryca 0.12 with escalation per year Electatry Usage $1,800,000 012 with 346 escalation per year 012 with 3% escalarion per grenr 012 with 3% escalation per 0.12 with 3% escalation per Salvage Value S800.000 SMUO,0000 SOLUTION B (NT:W CONSTURCTION) Construction Costs (Y) S4,500,000 Operations & Malutenance 3,000,000 0.2 with i escalation per year 0.2 with 14 escalation per year 0.2 with 1% escalation per year 02 with 1% escalation per 1.2 with 1% escalation per year Electricity Usage $1,350000 0.19 with 5% escalation per year 10 .00 with 10 calation per year 0.00 with 39 escalation per0 .00 with escalarian per 1.600.000 Salvagr Valur $2,000,000 PILULU PIUMINI # 26 Lifecycle Costing (LCC) & Facility Engineering & Management - ENGR155-01 Victor and his team work in the facilities engineering and construction department for a local university. They have been provided (2) options to consider regarding the upkeep functionality, and overall performance of an older structure on campus tearing the end of its lifecycle. Solution (A) - Major renovation to the existing structure. Solution (B) - Demolition & New construction of the aging structure completely To assist in evaluating both options, a lifecycle costing report (T.CC) has been prepared below. Given the following information: 1.) Solve using factor nolation & compound interest tables. 2.) Solve by creating a cash llow for the 15-year study period, the use nel present value (NPV) **Must Use Excel 3.) Utilizing the NPV analysis, which alternative (A or B) is the better solution that Victor and his team should consider? Why? * Hint Use Market Discount rate of 8%. Total Cost Year Year 1 11 SALE Year 12: Year 13: Year 14 Year 15 SOLUTION A RENOVATION $4,700,000 Renovation Costs (YU) Retrofit Replacement 54,700,000 S600.000 -S600.000 Operations & Maintenance S4.500.000 0.3 Will 1% scalation ya 0.3 walli 1 xcalao al 0.5 with 1% scallout 0.5 with 1% escalao PCL ya 0.3 watu 19 scalaticu paryca 0.12 with escalation per year Electatry Usage $1,800,000 012 with 346 escalation per year 012 with 3% escalarion per grenr 012 with 3% escalation per 0.12 with 3% escalation per Salvage Value S800.000 SMUO,0000 SOLUTION B (NT:W CONSTURCTION) Construction Costs (Y) S4,500,000 Operations & Malutenance 3,000,000 0.2 with i escalation per year 0.2 with 14 escalation per year 0.2 with 1% escalation per year 02 with 1% escalation per 1.2 with 1% escalation per year Electricity Usage $1,350000 0.19 with 5% escalation per year 10 .00 with 10 calation per year 0.00 with 39 escalation per0 .00 with escalarian per 1.600.000 Salvagr Valur $2,000,000
