Use life cycle costs to recommend system for the university

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Reference no: EM132655769

Need assistance to answer the following question. Could you please include detail to support response: University is planning to replace the current incandescent bulbs with energy efficient LED lamps in the classrooms. In response to their request for proposal, the university received two proposals.

The details of the proposal are:

                                                                         Company A                       Company B

Fixture cost including installation                  $ 35,000                        $ 55,000

Life in years                                                   10                              10

Insurance per month                                          $ 75                           $ 100

Electricity Consumption per month KWH              9000                                6000

Electricity rate cents/kwh                                     15                               15

Maintenance charges per qtr                                 $ 350                        $ 400

Fixture Overhaul & cleaning- #of yrs 3 5 in two

Supply Cost per overhaul                                         $ 900                      $ 600

# of labor hours per overhaul                                      5                             10

Labor rate for overhaul $/hr                                    $ 60                              $ 120

Problem 1: Use life cycle costs to recommend a system for the University. Show the calculations to support your recommendations.

Reference no: EM132655769

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