Prepare a life-cycle cost analysis for the procurement of a font end loader for the City of Henderson based on data from three companies. Also, the city is trading in the old front-end loader. Note that the Trade in and Resale Value should be subtracted from the amount of the life cycle cost. All calculations should be rounded to the nearest dollar amount. Solve for the energy cost prior to calculating the life-cycle cost. When you finish your calculation, indicate which of the bids should be accepted. Briefly explain your response.

Using EXCEL or a similar spreadsheet application

Life Cycle Cost Problem

Andersons Heavy Equipment Weschslers International McClansmFront End Leaders

Company 1 Company 2 Copmany 3

Bid Price $77,980.00 $79,000.00 $82,000.00

Trade in Value $3,100,00 $2,900,00 $3,500,00

Expected Use 85,000 miles 85,000 miles 85,000 miles

Life Expectancy 5 years 5 years 5 years

Efficency Rating 82% 80% 89%

Energy Cost _______ _________ _______

Resale Value (12 mpg) $6,000.00 (11 mpg) $5,200,00 $6,500.00

Maintenance Cost $24,000.00 $22,000.00 $20,000.00

Life Cycle Cost _______- __________ _______

Life- Cycle Cost Difference = ___________

Currently. diesel costs $3.94 per gallon