The described mathematical model calculates life-cycle costs for projects with operating costs increasing or decreasing linearly with time. The cost factors involved in the life-cycle cost are considered, and the errors resulting from the assumption of constant rather than uniformly varying operating costs are examined. Parameters in the study range from 2 to 30 years, for project life; 0 to 15% per year, for interest rate; and 5 to 90% of the initial operating cost, for the operating cost gradient. A numerical example is presented.
© 1977 Institute of Electrical and Electronics Engineers
Remer, D. S., "A Life Cycle Cost Economics Model for Automation Projects with Uniformly Varying Operating Costs," IEEE National Telecommunications Conference Record, 2, 32:4-1 (1977).