Life cycle cost analysis
Life cycle cost analysis (LCCA) is a tool to determine the most cost-effective option among different competing alternatives to do a project, when each is equally appropriate to be implemented on technical grounds. For example, for a highway pavement, apart from the initial construction cost, LCCA takes into account all the user costs, (e.g., reduced capacity at work zones), and agency costs related to future activities, including future periodic maintenance and rehabilitation. All the costs are usually discounted and totaled to a present day value known as net present value (NPV). This example can be generalized on any type of material, product, or system.
- Life-cycle Assessment (LCA), on the other hand, is the investigation and valuation of the environmental impacts of a given product or service caused or necessitated by its existence.
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