You are comparing two AHU replacement options for a 12-year-old hospital building:
Option A — Premium AHU
CAPEX: ₹18.5 lakh
Expected life: 16 years
Efficiency improvement: 14%
Filter life multiplier: ×1.8
Downtime per year: 11 hours
Option B — Mid-range AHU
CAPEX: ₹11.2 lakh
Expected life: 11 ye
You are comparing two AHU replacement options for a 12-year-old hospital building:
Option A — Premium AHU
CAPEX: ₹18.5 lakh
Expected life: 16 years
Efficiency improvement: 14%
Filter life multiplier: ×1.8
Downtime per year: 11 hours
Option B — Mid-range AHU
CAPEX: ₹11.2 lakh
Expected life: 11 years
Efficiency improvement: 9%
Filter life multiplier: ×1.3
Downtime per year: 7 hours
Energy cost = ₹67/kWh
AMC cost multiplier = 1.7× for hospitals
Criticality penalty = ₹18,500 per hour of downtime
Question:
Which AHU has the LOWER 10-year cost of ownership?
Comment with the "right option and your explantion"
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02 December, 2025 at 11:53 favorite_border 0
Correct Answer is option B. Reason: Across 10 years: Downtime penalty has higher impact than CAPEX or efficiency gain. Premium AHU has 4 extra downtime hours per year that is ₹7.4 lakh loss. Energy savings of premium unit ≈ ₹5.1 lakh over 10 years which is not enough. AMC on premium unit costs more because of enhanced filtration system. In critical facilities, uptime > efficiency. Only deep FM professionals know downtime cost dominates hospital lifecycle economics.
26 November, 2025 at 14:08 favorite_border 2
Right option: B — Mid-range AHU. Over a 10-year horizon Option B has a lower total cost unless the site’s AHU energy use is very high. Option A’s higher CAPEX (18.5L vs 11.2L) plus much greater downtime penalty (11h/yr vs 7h/yr) creates an extra ~1.47 million cost that Option A must recover through energy savings and lower filter/AMC costs to become cheaper. In most typical cases the mid-range AHU (Option B) will be cheaper over 10 years.
26 November, 2025 at 13:46 favorite_border 1
Option A — Premium AHU Explanation (why Option A has the LOWER 10-year cost of ownership) Even though Option A costs more upfront (₹18.5 lakh vs ₹11.2 lakh), its operating-cost advantages over 10 years outweigh the extra CAPEX. 1. Much higher energy-efficiency savings Option A efficiency gain = 14% Option B efficiency gain = 9% Energy is the dominant cost in AHUs, especially in hospitals, and at ₹67/kWh, even a 5% difference translates into several lakhs saved per year. Over 10 years the extra 5% efficiency advantage of Option A produces the largest cost difference.
26 November, 2025 at 13:25 favorite_border 1
Option A (Premium) — NPV ≈ Rs.65,810,245 Option B (Mid-range) — NPV ≈ Rs.67,914,260 Difference: Option A is cheaper by ≈ Rs.2,104,015 (10-year NPV).
26 November, 2025 at 13:21 favorite_border 1
You should pick the Premium AHU (Option A) if the AHU currently consumes roughly ≥ 32–43 MWh/year (32,000–43,000 kWh/year) — the exact threshold depends on your actual annual filter cost. If your current annual AHU energy use is lower than that threshold, the Mid-range (Option B) will be cheaper over 10 years.