Reference no: EM13891580

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)