Life cycle cost analysis guidelines

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Guidelines for Life Cycle Cost Analysis, Final Report, July 2003

Life Cycle Cost Analysis (LCCA) is an indispensable technique that employs well-established principles of economic analyses to evaluate long term performance of competing investment options. The LCCA process is performed by summing up the discounted monetary equivalency of all benefits and costs that are expected to be incurred in each option. The investment option that yield the maximum gains to the society is considered the optimal option. The analytical framework of LCCA further serves as a support system for making informed and conversant choices in infrastructure management.

This report summarizes a thorough research that establishes the guidelines for conducting LCCA.

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