Life-Cycle Costing Flashcards
1
Q
What LCC considers?
A
It treats design decisions as investments, takes into account outlays and payback over projects lifetime
2
Q
Describe nominal interest rate
A
Interest rates are usually stated as an amount per year disregarding any compounding that occurs during the year
3
Q
What is the most common compounding period in LCC?
A
Monthly compounding?
4
Q
What is discounted rate?
A
The money I’ll spend now in order to save in the future.
OR
Rate of return used to discount future cash flow when calculating the present value
