Given Item A:
Investment cost of $
a lifetime of periods
Maintenance cost = $
Given Item B:
Investment cost of $
a lifetime of periods
Maintenance cost = $
Cost of capital = %
Calculate the Equivalent Annual Cost
Calculate v:
| v = | 1 |
| 1 + Cost of Capital |
| v = | 1 |
| 1 + 0 |
| v = | 1 |
| 1 |
v = 1
Calculate Discount Factor for Item 1:
| a|0 = | (1 - vAsset Lifetime) |
| Cost of Capital |
| a|0 = | (1 - 1) |
| 0 |
| a|0 = | (1 - 1) |
| 0 |
| a|0 = | 0 |
| 0 |
a|0 = NAN
