Life Cycle Cost Analysis evaluates the total cost of an asset from the time it is acquired until the end of its useful life. It goes beyond the purchase price to include operating expenses, maintenance, energy use, and repair costs over time. This approach helps organizations select assets that deliver better long-term value rather than focusing solely on the lowest initial cost. In many cases, cheaper assets may become more expensive due to frequent breakdowns or high maintenance needs. By considering the full cost picture, organizations can reduce unexpected operational issues, improve financial planning, and maintain stable performance. Life cycle cost analysis is a practical tool that supports informed decision-making and stronger asset management.
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