How to do cost analysis on well and pump installation

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Trying to figure out how to do a cost analysis on a well and pump installation and use for a ten year period. This was posed as an engineering economics question. The time value of money was referenced. A requirement is developing a cost life cycle estimate and defining capital costs and annual costs. Then translating the annual costs over the project lifetime to net present value. Startup material costs $20507.46. Permits cost $1105.00. Energy consumption costs $1809.78. Yearly maintenance costs $3250.00. Disposal after a ten year period cost $5892.64. A loan of $32000.00 at 6% interest was taken to pay for the well. What steps do I take for this cost analysis? Thank you for your time. I do not have a required rate of return. Or if it is necessary I am able to make any necessary assumptions.

Reference no: EM131917915

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