Question

2)Which of the following is NOT true about life-cycle cost analysis (LCCA)?

a)LCCA cannot be used with present worth analysis.

b)Life cycle costs can divided into research and development costs, investment or procurement costs, operating and maintenance cost, and disposal costs.

c)LCCA is a process of evaluating the economic performance of various design options that may have different initial costs, operating costs, maintenance costs, and life cycles.

d)The vast majority of a system's life-cycle costs often occur after the system has entered service.

Answer 1

Answer;-

The statement a is true.The LCCA cannot be used with Present worth analysis as the LCCA is divided into many costs that occurs across the life cycle span.

The statement b is true. The LCCA can be categorized  into initial costs, operating costs and disposal costs and other costs attributed to owning and using assets.

The statement c is true.The LCCA helps in evaluating and assessing the economic performance of various design options that may have different initial costs, operating costs maintenance costs and life cycles.

The statement d is NOT true. A life cycle cost cost analysis involves the analysis of the costs of a system over the entire life span of the project.

Hence option a,b and c are true whereas the Option d is NOT true