Decision Making Through Life Cycle Costing- A Simple Practical Example

Decision Making Through  Life Cycle Costing- A Simple Practical Example
Problem Statement: To compare the life cycle costing by calculating the single Present  Value for different scenarios.
A choice is required to be made for air conditioning by
  1. Installing AC only
  2. Installing AC along with insulation works and solar film .
The variables would be the Initial costs and the Cost of Capital. The link below would take you to the Excel worksheet wherein the comments in each cell would make you understand the process fully. It is assumed that the user is a knowledge worker and the input parameters have been evaluated through experts. Excel Workbook has been set in a manner that is fit for a novice excel user.

Download The Excel File

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