Two different elevator suppliers are being considered in the construction of a new conference center. Maintenance on the elevator has both a fixed component and a variable component based on usage (person-floor travel). The company uses a MARR = 15% to evaluate investments.The study period is 20 years and repeatability can be assumed. Data for the two elevators is given below:

Easy Lift Smooth Lift

Purchase and installation $60,000 $100,000

Fixed annual maintenance $2,000 $1,500

Variable annual maintenance $0.50 / person-floor travelled $0.35 / person-floor travelled

Useful life 10 years 20 years

1. At what level of usage (annual person-floors travelled) would you be indifferent between the two elevators?
2. If you expect to utilize the elevator 60,000 people-floors per year, which elevator supplier would you recommend?