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LIFE CYCLE COST EVALUATION [1.2] Submittal Form Project Name Measure Ensure a Whole of Life/Life Cycle Cost (LCC) analysis is used to select between HVAC options (if applicable) and determine the
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How to fill out life cycle cost evaluation
How to fill out life cycle cost evaluation
01
Determine the scope of the evaluation, including which costs to include and the time horizon to consider.
02
Gather data on initial costs, recurring costs, maintenance costs, and disposal costs for the asset or project.
03
Calculate the present value of each cost component using an appropriate discount rate.
04
Sum all present values to obtain the total life cycle cost.
05
Compare different options or scenarios to identify the most cost-effective solution.
Who needs life cycle cost evaluation?
01
Government agencies looking to make informed decisions about infrastructure investments.
02
Businesses evaluating the long-term costs and benefits of a new project or asset.
03
Manufacturers seeking to understand the total cost of ownership for their products.
04
Facility managers aiming to optimize maintenance schedules and budgets.
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What is life cycle cost evaluation?
Life cycle cost evaluation is a method of evaluating the total cost of owning and operating a system or asset over its entire life span, taking into account all costs associated with the asset from acquisition to disposal.
Who is required to file life cycle cost evaluation?
Typically, government agencies or organizations in charge of infrastructure projects are required to file life cycle cost evaluations for major projects.
How to fill out life cycle cost evaluation?
To fill out a life cycle cost evaluation, one needs to gather data on all costs associated with the asset, calculate the present value of these costs, and compare different alternatives to determine the most cost-effective option.
What is the purpose of life cycle cost evaluation?
The purpose of life cycle cost evaluation is to help decision-makers make informed choices about investments in infrastructure and assets by considering long-term costs and benefits.
What information must be reported on life cycle cost evaluation?
Information that must be reported on a life cycle cost evaluation includes initial investment costs, operational and maintenance costs, repair and replacement costs, and salvage or disposal costs.
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