Solution-Recommend a system for neu

Recommend a system for neu

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Reference no: EM13848043

NEU is planning to replace the central A/C system for the class rooms. In response to their request for proposal, NEU received two proposals. The details of the proposal are given below.

	Company A	Company B
system cost including installation $	35,000	45,000
Life in years	10	10
Insurance per year $	900	1,200
Electricity charge per month $	800	450
Maintenance charges per quarter $	350	300
System Overhaul - number per year	4	3 in two years
Material Cost per overhaul $	1,000	400
Number of labor hours per overhaul	8	3
Labor rate for overhaul $/hour	100	100

Use life cycle costs to recommend a system for NEU. Show the calculations to support your recommendations.

Reference no: EM13848043

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Recommend a system for neu

Reference no: EM13848043

Reference no: EM13848043

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