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Hi good people, I would like to buy a new Forklift and I would like to use a "life cycle cost" analysis to justify the project. Can you please assist with basic ideas on a life cycle cost or any references. Thanks in advance.
1. Determine the life cycle (i.e. 10 years).
2. Determine all costs over the life cycle (capital, operation, maintenance).
3. Convert all costs to Present Worth values.
4. Totalize the costs for this alternative.
5. Repeat steps 1 through 4 for the other viable alternatives including the "no-action" alternative.
6. Compare life-cycle cost for alteratives and select the best alternative.
7. Purchase is justified for the best viable alternative that is also most cost-effective.
Life cycle cost
Re: Life cycle cost
