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.
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