Chapter 9 - E-Courses
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 />
⎥⎦