The hospital 's ST . Vice President of Facilities requested that you , the Construction Manager , provide a recommendation regarding the alternative , of choice . " You must perform a life cycle cost analysis by computing both the Present Worth ( PW ) and the Equivalent Annual Worth ( LAW or Costs ( EAC ) . The economic criteria for the analysis are as follows : Project life cycle - 25 years Interest Rate - 10% compounded annually Inflation approach - Constant dollars Staffing costs escalation per year