Maintenance

First Cost
Life
Salvage Value
Additional Cost
Year 1 - 5
Year 6 - 10
Year 10
Year 11 - 20

Alternative A
80,000
20 years
7,000

Alternative B
35,000
10 years
0

1,000
1,500

3,000
4,000

5,000 Burner
replacement
2,000

Replace entire
system

First Cost
Life
Salvage Value
Additional Cost
Year 1 - 5
Year 6 - 10

35,000
10 years
0

1,000
1,500

3,000
4,000

Replace
5,000 Burner replacement entire system
2,000

Year 10
Year 11 - 20
Alternative A
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total

80,000
20 years
7,000

First replacement cost Annual cost Total annual cost

80,000
0
80,000
0
1,000
1,000
0
1,000
1,000
0
1,000
1,000
0
1,000
1,000
0
1,000
1,000
0
1,500
1,500
0
1,500
1,500
0
1,500
1,500
0
1,500
1,500
5000
1,500
6,500
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
0
2,000
2,000
-7000
2,000
-5,000
-2,000
32500
110,500

Present worth factor (P/F) Present worth cumulative cost

1.00
80,000
0.91
909
0.83
826
0.75
751
0.68
683
0.62
621
0.56
847
0.51
770
0.47
700
0.42
636
0.39
2506
0.35
701
0.32
637
0.29
579
0.26
527
0.24
479
0.22
435
0.20
396
0.18
360
0.16
327
0.15
-743
92,947

Present worth of annual cost

80,000
80,909
81,735
82,486
83,169
83,790
84,637
85,407
86,107
86,743
89,249
89,950
90,587
91,166
91,693
92,172
92,607
93,003
93,363
93,690
92,947

First Cost
Life
Salvage Value
Additional Cost
Year 1 - 5
Year 6 - 10

35,000
10 years
0

1,000
1,500

3,000
4,000

Replace
5,000 Burner replacement entire system
2,000

Year 10
Year 11 - 20
Alternative B
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total

80,000
20 years
7,000

First replacement cost Annual cost Total annual cost

35,000
0
35,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
4,000
4,000
0
4,000
4,000
0
4,000
4,000
0
4,000
4,000
0
4,000
4,000
0
35,000
35,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
3,000
3,000
0
4,000
4,000
0
4,000
4,000
0
4,000
4,000
0
4,000
4,000
0
101000
136,000

Present worth factor (P/F) Present worth cumulative costs

1.00
35,000
0.91
2727
0.83
2479
0.75
2254
0.68
2049
0.62
1863
0.56
2258
0.51
2053
0.47
1866
0.42
1696
0.39
1542
0.35
12267
0.32
956
0.29
869
0.26
790
0.24
718
0.22
653
0.20
791
0.18
719
0.16
654
0.15
595
74,799

Present worth of annual cost

35,000
37,727
40,206
42,460
44,509
46,372
48,630
50,683
52,549
54,245
55,787
68,054
69,010
69,879
70,669
71,387
72,040
72,831
73,550
74,204
74,799