Select the HVAC system that exhibits the best Life Cycle Cost (LCC) scenario from the following options. Consider the life or horizon N to be 30 years and the investment interest rate, i = 10%.
|
Option 1 |
Option 2 |
Option 3 |
| Original Equipment & Installation Cost |
947,650 |
1,257,500 |
550,000 |
| Interface Cost - Electric (one time, t = 0) |
55,000 |
52,000 |
45,000 |
| Interface Cost - Plumbing (one time, t = 0) |
98,500 |
80,000 |
95,000 |
| Reconditioning Cost |
300,000 |
250,000 |
550,000 |
| Reconditioning Period |
10 |
15 |
5 |
| Annual Maintenance Cost |
38,000 |
20,500 |
12,000 |
| Maintenance Cost Escalation |
2,000 |
|
|
| Annual Operating Cost |
45,500 |
40,000 |
42,000 |
| Annual Operating Cost Escalation |
|
7% |
|
Your selection shall be based on a life cycle cost analysis (LCCA) including PW and EAC. Be sure to show complete functional notation with the correct compound interest factors for each option. CF diagrams are NOT required. All work shall be neat and methodically performed. All work shall be performed in pencil on the front side of the comp sheets provided on BlackBoard, as well as in an Excel Spreadsheet.
For i ≠ g
(P/A,g,i,N) = [1 - (1 + g)N(1 + i)-N]/(i - g)