Question: Q 4 . By applying Life Cycle Costing technique, evaluate which building with cost data shown below is more economical. Both buildings provide the same

Q4. By applying Life Cycle Costing technique, evaluate which building with cost data shown below is more economical. Both buildings provide the same net floor areas and are expected to have 50 years building life. Interest rate is \(5\%\) per annum. \begin{tabular}{|c|c|c|}\hline & Building X & Building Y \\\hline Initial cost & \$50,000,000 & \$60,000,000\\\hline Repair cost & \(\$ 600,000\) in every 10 years & \(\$ 800,000\) in every 20 years \\\hline Maintenance cost & \$300,000 per annum & \$150,000 per annum \\\hline Energy cost & \$1,000,000 per annum & \$500,000 per annum \\\hline Major Renovation & Not applicable & \(\$ 1,000,000\) in every 20 years \\\hline Demolition/Disposal & \$2,000,000 & \$1,500,000\\\hline \end{tabular}(15 marks)
Q 4 . By applying Life Cycle Costing technique,

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