Calculate net present value

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Reference no: EM135064

You are going to select window type and have two alternatives; aluminium and wood. The window size is with/high 1,4/1,8 metres. Following shall be a base:

  • Calculation period 60 year, real interest 5%
  • Aluminium window
    • life time 60 year, maintenance period 20 year(adjustments)
  • Wooden window
    • life time 30 year (NB when replace an item remember add some costs for removing the old one), maintenance period 5 year (painting)

Set up life cycle diagram for both alternatives and calculate net present value (NPT) and annual cost for the life time (60 years).

Reference no: EM135064

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