Economics life-cycle cost

The difference between life cycle costs and the traditional accounting cost is that traditional costs are fairly easy to quantify, whereas life cycle costs are usually difficult to quantify and are usually either lumped iato general overhead costs or ignored altogether. They are very real, however, and when examined ia detail and fully quantified, the economics of composites allow them to displace the traditional materials. 

Economic Factors These inchrde capital cost (eqrripment, installation, engineering, etc.), operating cost (rrtUities, maintenance, etc.), emissions fees, and life-cycle cost over the expected eqrripment lifetime. 

In considering the economics of process alternatives, it is important to think about the total life cycle costs. There is an increasing interest in this concept in the environmental area, with a recognition of the need to incorporate waste treatment, waste disposal, regulatory compliance, potential liability for environmental damage, and other long term environmental costs into project economic evaluation. Similarly, we must consider life cycle safety costs. Some examples of factors which should be considered include ... 

Life-cycle analysis (LCA) does not account for economic aspects, and such analysis should therefore be considered together with a life-cycle cost analysis (LCC), which takes into account the costs of investment, energy, maintenance, and dumping the final waste product throughout the lifetime of a plant. 

Calculations of life-cycle costs, net benefits, or other measures of economic performance are commonly performed on electronic calculators, commercial spreadsheet software, or by hand. The calculation approach for life-cycle costs is to first compute the net cost amount in each period for each alternative, C(t,x). The life-cycle cost (LCC) of each alternative is then calculated as the sum of the discounted values of C(t,x) over the entire planning horizon ... 

Capital investments can also be selected on the basis of other measures of performance such as return on investment, internal rate of return, and benefit-cost ratio (or savings-to-investment ratio). Flowever, care must be taken in the application of these methods, as an incremental analysis is required to ensure consistent comparison of mutually exclusive alternatives. Also, rather than requiring a separate value to be calculated for each alternative, as in the case of the life-cycle cost method, these other methods incorporate the difference between two mutually exclusive alternatives within a single measure. For example, the net benefits measure directly pressures the degree to which one alternative is more economically desirable than another. 

For the hybrid car, 429—(20,000 miles per year / 70 miles per gallon) x ( 1.50 per gallon)— will be spent each year on gasoline. A similar calculation to that for the conventional car reveals that LCC (hybrid) = 22,309. The life-cycle cost analysis indicates that from an economic point of view, the conventional car is the better purchase. 

Life Cycle Costing to Reduce Economic Impact of Adaptation. 

A life cycle cost analysis was done to evaluate the economic attractiveness of the various measure sets. Included in the analysis is the impact on equipment sizing, usually a saving. The sizing changes can result in a significant cost reduction for the measure sets. In order to realize the payback periods shown, equipment must be sized in accordance with load reductions. 

The application boundary between piston- and radial-turbo-compressors lies approximately at 104 nr/h intake volume flow rate (power > 1 to 5 MW). In individual cases, the most economical solution must be determined based on the life-cycle costs. 

Barriers to the increased usage of rubber in asphalt pavements are both economic and noneconomic in nature. The cost of installing roads of rubberized asphalt is greater than conventional asphalt, which is an economic barrier. On the other hand, several studies show that the total life cycle cost of rubberized asphalt is... 

These statements are only valid as long as there are no abrasive particles in the fluid. If abrasive particles are jammed into the sealing area, the only predominant facts are the difference of hardness between the sealing area and the particles. The best economical solution therefore, in this case, is to use expensive hard and most rigid materials. Experience with silicates and Ranney-Nickel etc. confirm this. Finally by installing valve parts of Silicon-Nitrite or Tungsten Carbide it was possible to achieve quite acceptable life cycle costs. 

The total economic picture, including life cycle costs and energy7 expenditures, must be considered in selecting an efficient air conditioning system For many systems, the ratio of annual energy usage to first cost ranges from 0.25 to 2. Tims, over its usehil life, a system consumes many times its initial costs. 

Life cycle costing (LCC), also called life cycle management (LCM), is another toolbox based on life cycle concepts [83, 84]. It includes aspects related to the three pillars of sustainability an environmental tool, an economic tool and a social tool. 

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