About Recommended Practice 138R 25:
Life cycle cost analysis (LCCA) is a comprehensive economic assessment method used to evaluate the total cost of owning, operating, maintaining, refurbishing, and disposing of an asset over its expected life span. LCCA extends beyond initial acquisition or construction costs to include all subsequent expenses, such as operation, maintenance, upgrades, and eventual disposal costs, as well as the potential savings or benefits over the asset's life. The primary purpose of LCCA is to assist decision-makers in choosing the most cost-effective option among different competing alternatives. By evaluating the total cost of ownership of a project, asset, or system over its entire lifespan, LCCA enables informed decision-making that balances initial investment costs with long-term operational, maintenance, and disposal costs.