Significance and Use
LCC analysis is an economic method to evaluate alternatives that are characterized by differing cash flows over the designated project design life. The method entails calculating the LCC of each alternative capable of satisfying the functional requirements of the project and comparing them to determine which have the lowest estimated LCC over the project design life.
The LCC method is particularly suitable for determining whether the higher initial cost of an alternative is economically justified by reductions in future costs (for example, operating maintenance, rehabilitation, or replacement) when compared to an alternative with lower initial costs but higher future costs. If a design alternative has both a lower initial cost and lower future costs than other alternatives, an LCC analysis is not necessary to show the former is the economically preferable choice.
1.1 This practice establishes a procedure for using life cycle cost (LCC) analysis techniques to evaluate alternative drainage system designs, using plastic pipe that satisfy the same functional requirements.
1.2 The LCC technique measures the present value of all relevant costs to install, operate, and maintain alternative drainage systems such as engineering, construction, maintenance, rehabilitation, or replacement over a specified period of time. The practice also accommodates any remaining residual or salvage value.
1.3 The decision maker, using the results of the LCC analysis, can then identify the alternative(s) with the lowest estimated total cost based on the present value of all costs.
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.
2. Referenced Documents (purchase separately) The documents listed below are referenced within the subject standard but are not provided as part of the standard.
FederalOfficeofManag Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs and state documents for guidelines or requirements Available from Office of Management and Budget, Washington, DC.
cost analysis; discount rate; drainage system; engineering economics; least cost; life-cycle cost; material service life; present value analysis; project design life; Reinforced thermosetting-resin pipe (RTRP); Storm sewer/drainage pipe; Terminal value; Thermoplastic pipe/tube/fittings; Buried conduits; Cost analysis (of building constructions); Culverts; Discount rate; Drainage materials/systems; Engineering economics; Life-cycle cost (LCC) analysis; Material service life; Plastic pipe/tubing/fittings; Present value (PV) analysis; Project design life;
ICS Number Code 03.100.50 (Production. Production management); 23.040.20 (Plastic pipes)
ASTM International is a member of CrossRef.
Citing ASTM Standards
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