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Chapter 9 - E-Courses

Chapter 9 - E-Courses

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Life Cycle Cost-1<br />

Salvage is the money that is obtained while disposing the<br />

machinery at the end of life cycle period.<br />

Even this amount has to be converted to present worth for<br />

calculating LCC.<br />

Once we have the LCC value, we can easily find the Annual Life<br />

Cycle Costing using the following equation:<br />

ALCC<br />

=<br />

⎛<br />

⎜<br />

⎝<br />

+<br />

i −<br />

1<br />

f )<br />

f<br />

LCC<br />

⎞ ⎡ ⎛1<br />

+<br />

⎟ ⋅ ⎢1<br />

− ⎜<br />

⎠ ⎢⎣<br />

⎝ 1+<br />

f<br />

i<br />

⎞<br />

⎟<br />

⎠<br />

n<br />

⎤<br />

⎥<br />

⎥⎦

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