Table 2. Variables in systems A and B

Variable System “A” System “B”
Total life cycle 20 years 5 years
Annual operating hours 6,000 6,000
Failure rate(λ) per 1 million hour 2,000 2,000
Time to repair 3 h 3 h
Time to replace 2 h 2 h
Cost of repair $ 300 $ 300
Cost of replacement $ 200 $ 200