What is the main goal of the Life Cycle Cost estimate?

The main goal of the Life Cycle Cost estimate is to evaluate the overall economic value of a project. This comprehensive approach examines all costs associated with a system or project over its entire life span, not just the initial expenditure. By assessing initial costs, operational expenses, maintenance, and eventual disposal costs, stakeholders can make informed decisions about investments and resource allocation.

This method provides a holistic view of the financial implications, helping to maximize the value derived from the investment. Analyzing the entire life cycle allows for better planning and management, ensuring that all future costs and savings are considered when evaluating the project’s feasibility and economic effectiveness. This perspective is crucial when comparing potential projects or investments, as it supports strategic planning and justifies expenditure based on long-term benefits rather than short-term costs.