Question: NEU is planning to replace the current incandescent bulbs with energy efficient LED lamps in the classrooms. In response to their request for proposal, NEU

NEU is planning to replace the current incandescent bulbs with energy efficient LED lamps in the classrooms. In response to their request for proposal, NEU received two proposals. The details of the proposal are given below.

Company A

Company C

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 quarter $

350

400

Fixture Overhaul and cleaning - number per year

3

5 in two years

Supply Cost per overhaul $

900

600

Number of labor hours per overhaul

5

10

Labor rate for overhaul $/hour

60

120

Use life cycle costs to recommend a system for NEU. Show the calculations to support your recommendations.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f