How do you do a life cycle cost analysis?

How do you do a life cycle cost analysis?

LCC = C+PV Recurring – PV Residual Value

1. LCC is the life cycle cost.
2. C is the 0-year construction cost.
3. PV recurring is the present value of all recurring cost.
4. PV residual value is the present value of residual value.

How do you calculate LCC in Excel?

Type “=B2*0.2” into cell “B11.” Press the “Enter” key. Type “=SUM(B2:B11)” into cell “B12.” Press the “Enter” key to calculate LCC value of the product..

How do you calculate total life-cycle cost?

Applications of Life Cycle Costing The net income divided by the original capital cost of investment. Return on Investment Formula = (Net Profit / Cost of Investment) * 100 read more return on investment (ROI).

How do you calculate the life-cycle cost of equipment?

Life Cycle Cost for the system and equipment to be evaluated equals the sum of the following cost elements: • Capital Cost. Operating Cost. Cost of Deferred Production. = The total standard deviation.

What are the 5 stages of a life cycle assessment?

5 Steps of a product lifecycle: From Cradle To Grave

• Raw Material Extraction.
• Manufacturing & Processing.
• Transportation.
• Usage & Retail.
• Waste Disposal.

What are the 4 stages of life cycle assessment?

Life cycle assessment (LCA) is a framework for assessing the environmental impacts of product systems and decisions. The steps in LCA are (1) goal and scope definition, (2) life cycle inventory analysis (LCI), (3) life cycle impact assessment (LCIA), and (4) interpretation of the results.