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Significance and Use
5.1 The results of the analysis may be used to compare to similar pieces of commercial food service equipment to determine the unit that has the lowest life cycle cost, or the highest net present value.
1.1 This practice for life cycle cost analysis of commercial food service equipment is designed for producers and end-users to utilize when forecasting and (or) evaluating the life cycle costs of equipment by accounting for tangible differences in operating and maintenance costs of commercial food service equipment. Results of the analysis detailed in this standard practice are intended for budgetary purposes.
1.1.1 The results may also be used to compare projected life cycle cost of different models from a single manufacturer, or models manufactured by multiple suppliers, or to establish when it is cost effective to replace a specific equipment versus incurring continued maintenance expenses.
1.2 Major categories included in this analysis include total purchase price, service and repair costs, preventative maintenance costs, utility operating costs and disposal costs. The results may be quantified as a yearly running total and a net present value.
1.3 Inputs for this life-cycle analysis will need to come from a variety of sources, including manufacturers, service agents, utility companies, and end users. Not all input variables need be considered for effective analysis. To avoid skewing the results, sections where reliable estimates are not available should be left out of the analysis.
1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
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