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.
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| 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.
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