Standard Practice for Life-Cycle Cost Analysis of Corrosion Protection Systems on Iron and Steel Products

Importancia y uso:

5.1 LCC analysis is an economic method for evaluating alternatives that are characterized by differing cash flows over the designated project design life. The method entails calculating the LCC of each alternate capable of satisfying the functional requirement of the project and comparing them to determine which has (have) the lowest estimated LCC over the project design life.

5.2 The LCC method is particularly suitable for determining whether the higher initial cost of an alternative is economically justified by reductions in future costs (for example, rehabilitation, or replacement) when compared to an alternative with lower initial costs but higher future costs. If a design alternative has both a lower initial cost and lower future costs than other alternatives, an LCC analysis is not necessary to show that the former is the economically preferable choice.

Subcomité:

A05.13

Volúmen:

01.06

Número ICS:

77.060 (Corrosion of metals)

Palabras clave:

cost analysis; discount rate; drainage systems; engineering economics; least cost; life-cycle cost; material service life; present value analysis; project design life;