An Overview Of Life-Cycle Cost Analysis Page 11

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Analysis period
• As long as residual value is considered, choice
of analysis period length isn’t (usually) critical
• Must be the same within each set of mutually-
exclusive alternatives examined
• Reasonable, simplifying analysis period
options:
– Life of new/retrofit equipment
– Remaining life (time to fail) of existing equipment
11
Energy Exchange: Connect • Collaborate • Conserve

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