Lifecyclecost - 1250 1000 150 150 150 150 150 150 250 150 150 150 400 2400 150 Product B Armstrong Inc Net Annual Cost 2250 2250 150 138.89 150

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Product A year 0 1 2 Purchase 2700 Delivery Storage Installation 1200 Maintenance (annual) 250 250 Painting Cost Resale value or disposal cost NET ANNUAL COST 3900 250 250 Product B year 0 1 2 Purchase 1250 Delivery Storage Installation 1000 Maintenance 150 150 Painting Cost Resale value or disposal cost NET ANNUAL COST 2250 150 150 LIFE CYCLE COST COMPARISON Product A, Tectum inc. YR PV Factor Net Annual Cost 0 1 3900 3900 1 0.93 250 231.48 2 0.86 250 214.33 3 0.79 250 198.45 4 0.74 250 183.75 5 0.68 250 170.15 6 0.63 750 472.65 7 0.58 250 145.88 8 0.54 250 135.08 9 0.5 250 125.08 10 0.46 250 115.8 11 0.43 250 107.23 12 0.4 750 297.83 13 0.37 250 91.93 14 0.34 250 85.13 15 0.32 250 78.8 16 0.29 250 72.98 17 0.27 250 67.58 18 0.25 550 137.67 LIFE CYCLE COST 6831.74 847.47 PV of Net annual cost (Net cost*PV factor)
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3 4 5 6 7 8 250 250 250 250 250 250 500 250 250 250 750 250 250 3 4 5 6 7 8
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Unformatted text preview: 1250 1000 150 150 150 150 150 150 250 150 150 150 400 2400 150 Product B, Armstrong Inc. Net Annual Cost 2250 2250 150 138.89 150 128.6 150 119.07 150 110.25 150 102.09 400 252.08 2400 1400.4 150 81.05 150 75.05 150 69.48 150 64.34 150 59.57 400 147.08 2400 817.2 150 47.28 150 43.79 150 40.55 150 37.55 5984.28 PV of Net annual cost (Net cost*PV factor) 9 10 11 12 13 14 15 250 250 250 250 250 250 250 500 250 250 250 750 250 250 250 9 10 11 12 13 14 15 1250 1000 150 150 150 150 150 150 150 250 150 150 150 150 400 2400 150 16 17 18 250 250 250 300 250 250 550 16 17 18 150 150 150 150 150 150...
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This note was uploaded on 02/19/2008 for the course DEA 3030 taught by Professor Gilmore,r. during the Fall '08 term at Cornell University (Engineering School).

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Lifecyclecost - 1250 1000 150 150 150 150 150 150 250 150 150 150 400 2400 150 Product B Armstrong Inc Net Annual Cost 2250 2250 150 138.89 150

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