Company A is planning to replace the current incandescent bulbs with energy efficient LED lamps in the classrooms. In response to their request for proposal, they received two proposals. The details of the proposal are given below.
Use life cycle costs to recommend a system. Show the calculations to support your recommendations.
|
|
Company A |
Company C |
|
Fixturecost including installation $ |
35,000 |
55,000 |
|
Life in years |
10 |
10 |
|
Insurance per month $ |
75 |
100 |
|
Electricity Consumption per month KWH |
9000 |
6000 |
|
Electricity ratecents/kwh |
15 |
15 |
|
Maintenance charges per quarter $ |
350 |
400 |
|
Fixture Overhaul and cleaning- number per year |
3 |
5 in two years |
|
SupplyCost per overhaul $ |
900 |
600 |
|
Number of labor hours per overhaul |
5 |
10 |
|
Labor rate for overhaul $/hour |
60 |
120 |