The life cycle cost analysis for any company is usually done using a number of steps. These steps are what make the whole process to be effective in the end and solve the company’s problems. First, the managers of the company need to determine time for each cost element.

After this is done, the value of each cost element is estimated and this is followed by the calculation of the Net Present Value of each element (Robert, 2002). This NPV value is done for every year. What follows next is the calculation of the LCC by summing up all cost elements. This is done at every year. After these steps have been passed, an analysis of the results can now be done.

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