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Bility Marriott Houston Westside Houston, Texas October 2-4, 1996 Revised December 2, 1996 Organized by Gulf Publishing Company and HYDROCARBON PROCESSING 3-1 Life Cycle Cost Tutorial H. Paul Barringer, P.E., Barringer & Associates, Inc., P. O. Box 3985, Humble, TX, Phone: 713-852-6810, FAX: 713-852-3749 and David P. Weber, D. Weber Systems, Inc. 1018 Seapine Ct., Maineville, OH 45039, Phone: 513-677-9314, FAX: 513-697-0860 ABSTRACT Life cycle costs (LCC) are cradle to grave costs summarized.
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Us1000 FAQ
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In most cases, life-cycle cost (LCC) analysis is utilized to compare competing alternative investment options. The term "life-cycle cost" refers to an evaluation method that considers all costs that arise during a project's life cycle.
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Life Cycle Cost Analysis (LCCA) is an economic evaluation technique that determines the total cost of owning and operating a facility over period of time. Life Cycle Cost Analysis can be performed on large and small buildings or on isolated building systems.
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LCC is a complementary method for estimating the total costs of a product or service, including acquisition, operation, maintenance, and disposal costs. Together, LCA and LCC provide a holistic view of the environmental and economic performance of a product or service over its life cycle.
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Life Cycle Costing, in accounting terms, is the process of compiling all the costs the asset will incur over its lifespan. These costs include the initial investment, future additional investments, annually recurring costs, and salvage or disposal costs.
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Life-cycle costing (LCC) means considering all the costs that will be incurred during the lifetime of the product, work or service.
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Real discount rates used in life-cycle cost analysis typically range from 3 to 5 percent, representing the prevailing rate of interest on borrowed funds, less inflation. Because there is always an opportunity value of time, real discount rates will always exceed zero.
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This calculation is as follows: Life-cycle costing (LCC) = capital cost + lifetime operations cost + lifetime maintenance costs + disposal costs - residual value.
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2 Life Cycle Costing Methodology. LCC is a method for evaluating the economic dimension of sustainability of a product or service. In LCC, the monetary costs of a product or service across its entire life cycle are calculated.
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