What is Life Cycle Cost?

The life cycle cost (LCC) of any piece of equipment is the total “lifetime” cost to purchase, install, operate, maintain, and dispose of that equipment. Determining
LCC involves following a methodology to identify and quantify all of the  components of the LCC equation.

When used as a comparison tool between possible design or overhaul alternatives, the LCC process will show the most cost-effective solution within the limits of the
available data.

The components of a life cycle cost analysis typically include initial costs, installation and commissioning costs, energy costs, operation costs, maintenance and repair
costs, down time costs, environmental costs, and decommissioning and disposal costs.