The hospital's Sr. Vice President of Facilities requested that you, the Construction Manager, provide a recommendation...

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The hospital's Sr. Vice President of Facilities requested that you, the Construction Manager, provide a recommendation regarding the alternative of choice. You must perform a life cycle cost analysis by computing both the Present Worth (PW) and the Equivalent Annual Worth (EAW) or Costs (EAC). The economic criteria that are the same for all of the alternatives are as follows: Project life cycle Interest Rate Inflation approach Staffing costs escalation 25 years 10% compounded annually Constant dollars $325,000/year Alternative 1 - Remain in existing Nursing Towers Cost, $ Replace Air Handling Units Every 5 Years 2,000,000 Re-Roof Nursing Towers Every 10 Years Nursing Tower Salvage Value after 25 Years Annual Energy Consumption (Cost) Maintenance/Repair Costs/Year Nursing Staff Annual Costs 250,000 0% 850,000 1,250,000 7,776,000 The hospital's Sr. Vice President of Facilities requested that you, the Construction Manager, provide a recommendation regarding the alternative of choice. You must perform a life cycle cost analysis by computing both the Present Worth (PW) and the Equivalent Annual Worth (EAW) or Costs (EAC). The economic criteria that are the same for all of the alternatives are as follows: Project life cycle Interest Rate Inflation approach Staffing costs escalation 25 years 10% compounded annually Constant dollars $325,000/year Alternative 1 - Remain in existing Nursing Towers Cost, $ Replace Air Handling Units Every 5 Years 2,000,000 Re-Roof Nursing Towers Every 10 Years Nursing Tower Salvage Value after 25 Years Annual Energy Consumption (Cost) Maintenance/Repair Costs/Year Nursing Staff Annual Costs 250,000 0% 850,000 1,250,000 7,776,000

Answer rating: 100% (QA)

Here are the steps to perform the life cycle cost analysis for Alternative 1 Cost Data Repl... View the full answer