Question: 7.4 Construct the required CFD and calculate life-cycle cost (LCC) at an interest rate of 7% per year for a proposed project, where cost categories
7.4 Construct the required CFD and calculate life-cycle cost (LCC) at an interest rate of 7% per year for a proposed project, where cost categories (in millions) for the 20-year life cycle are indicated in the following table:
| Cost in Each Year(s) in ($ Millions) | |||||||||
| Cost Category | 0 | 1 | 2 | 3 | 4 | 5 | 6 thru 10 | 11 thru 17 | 18 thru 20 |
| Research & Development | $ 5.50 | $ 3.50 | $ 2.50 | $ 0.50 | |||||
| Proof of Concept | $ 1.10 | ||||||||
| Prototype Development | $ 5.20 | ||||||||
| Design for Manufacturing | $10.50 | ||||||||
| Initial Production | $ 10.50 | ||||||||
| Recurring Production Costs | $ 1.30 | $ 3.10 | $ 4.20 | $ 6.50 | $ 2.20 | ||||
| Maintenance Costs | $ 0.60 | $ 1.40 | $ 1.60 | $ 2.70 | $ 3.50 | ||||
| Equipment Costs | $ 1.50 | $ 3.60 | $ 5.30 | $ 7.80 | $ 8.50 | ||||
| Disposal | $ | ||||||||
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