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LIFE-CYCLE COST ANALYSIS<br />
• ECONOMIC ASSESSMENT OF COMPETING, TECHNICALLY<br />
SUITABLE SYSTEMS OVER DESIGN LIFE<br />
• COST COMPONENTS<br />
INITIAL COSTS (CAPITAL COSTS)<br />
MAINTENANCE COSTS<br />
REHABILITATION COSTS<br />
RESIDUAL/SALVAGE VALUES<br />
USER COSTS (TRAFFIC DELAY FOR INSTANCE)<br />
• PRESENT WORTH METHOD<br />
ANALYSIS PERIOD (TYPICALLY 30 TO 40 YEARS – AT LEAST ONE<br />
REHABILITATION)<br />
DISCOUNT RATE (TYPICALLY ABOUT 4 PERCENT)<br />
PRESENT WORTH (REMEMBER RULE OF 72)<br />
• FOAMED ASPHALT WITH HMA OVERLAY LIFE-CYCLE COST<br />
ANALYSES GENERALLY VERY FAVOURABLE COMPARED TO<br />
PULVERIZE/'THICKER ' HMA OR MILL/RECYCLED HMA/HMA
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