The LCC example below summarizes three alternatives being considered Alternative A: do nothing Alternative B: Renovate existing facility Alternative C and D: Demolish existing facility and build new facility The costs (and salvage value if any) over the assumed 25 year for each alternative are given in the table below. Assume a 10 % discount rate compounded annually The initial costs for the three alternatives at time t=0 are given below (Note that GSF = Gross square foot): Initial Cost Construction Cost Quantity GSF Price/GSF A. Existing Nursing Towers 200,000 0 B. Renovate Nursing Towers 200,000 $100.00 C. Build New Nursing Towers 180,000 $225.00 D. Demolish Existing Nursing Towers 200,000 $ 25.00 The equipment replacement costs and salvage value (where applicable) are given below: Cost of Replacement or Salvage Value Description Years to be Replaced or Salvaged Alternate A Alternate B Alternate C Air handling Unit 5 $2,000,000 $2,000,000 0 Re-roof Nursing Towers 10 0 $ 250,000 $ 500,000 Salvage Value (New @ 50%) 25 0 0 $20,000,000 The annual costs for each alternative are given in the table below: Description Alternate A Alternate B Alternate C Annual Energy Cost $1,500,000 $1,250,000 $1,000,000 M & R Cost $1,750,000 $1,400,000 $ 700,000 Staffing Cost $10,000,000 $9,000,000 $7,500,000

Determine the life cycle costs for Alternative A, Alternative B, Alternative C and which alternative you would recommend to the owner. (Please enter numbers only, rounded to the nearest whole number).

The problem statement is used for questions 06. 07. 08. 09 and 010: The LCC example below summarizes three alternatives being considered for a nursing facility project in Detroit, MI: Alternative A: do nothing Alternative B: Renovate existing facility Alternative C and D: Demolish existing facility and build new facility The costs (and salvage value if any) over the assumed 25 year for each alternative are given in the table below. Assume a 10% discount rate compounded annually The initial costs for the three alternatives at time t=0 are given below (Note that GSF = Gross square foot): Quantity (GSF) Price/GSF Initial Costs Construction Cost A. Existing Nursing Towers B. Renovate Nursing Towers C. Build New Nursing Towers D. Demolish Existing Towers 200,000 200,000 180,000 200,000 $0.00 $100.00 $225.00 $25.00 The equipment replacement costs and salvage value (where applicable) are given below: Cost of Replacement or Salvage Value Year to be Replaced or Salvaged $ Description Air Handing Unit Re-roof Nursing Towers Salvage Value (New @ 50%) 10 Alternative A Alternative B Alternative C 2,000,000 $ 2,000,000 $ 250,000 $ 500,000 $ 20,000,000 25 The annual costs for each alternative are given in the table below: Description Energy Annual Cost Maintenance and Repair Cost Nurse Staffing Annual Cost Annual Costs Alternative A Alternative B | Alternative C 1,500,000 $ 1,250,000 $ 1,000,000 1,750,000 $ 1,400,000 $ 700,000 10,000,000 $ 9,000,000 $ 7,500,000 $ The problem statement is used for questions 06. 07. 08. 09 and 010: The LCC example below summarizes three alternatives being considered for a nursing facility project in Detroit, MI: Alternative A: do nothing Alternative B: Renovate existing facility Alternative C and D: Demolish existing facility and build new facility The costs (and salvage value if any) over the assumed 25 year for each alternative are given in the table below. Assume a 10% discount rate compounded annually The initial costs for the three alternatives at time t=0 are given below (Note that GSF = Gross square foot): Quantity (GSF) Price/GSF Initial Costs Construction Cost A. Existing Nursing Towers B. Renovate Nursing Towers C. Build New Nursing Towers D. Demolish Existing Towers 200,000 200,000 180,000 200,000 $0.00 $100.00 $225.00 $25.00 The equipment replacement costs and salvage value (where applicable) are given below: Cost of Replacement or Salvage Value Year to be Replaced or Salvaged $ Description Air Handing Unit Re-roof Nursing Towers Salvage Value (New @ 50%) 10 Alternative A Alternative B Alternative C 2,000,000 $ 2,000,000 $ 250,000 $ 500,000 $ 20,000,000 25 The annual costs for each alternative are given in the table below: Description Energy Annual Cost Maintenance and Repair Cost Nurse Staffing Annual Cost Annual Costs Alternative A Alternative B | Alternative C 1,500,000 $ 1,250,000 $ 1,000,000 1,750,000 $ 1,400,000 $ 700,000 10,000,000 $ 9,000,000 $ 7,500,000 $