Life - cycle Cost
Establish design alternative
Activity Timing
Estimated Cost
Life Cycle Cost
Results
LCCA Verses CBA
Project Elements
LCCA
CBA
Agency Construction, Rehab., & Maintenance
Yes
Yes
User Cost During Construction
Yes
Yes
User Cost during Normal Operations
Yes
Yes
User Benefit from Project
No
Yes
Externalities Resulting from Project
No
Yes
Why LCC
The design alternatives selected will commit the agency to future expenditures for maintenance and rehabilitation.
LCC is used to select the most cost-effective alternatives that accomplish the project at specific level.
Includes total cost incurred during the period - including cost to the users Does not include post project benefit.
Includes preservation activities - offer extended life and reduces cost of M&H