Whole-Life Cost

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Whole-Life Cost

The total amount a company spends on an asset over its entire usable life. Examples of whole-life costs include planning, research, purchase price, and maintenance. Companies estimate the whole-life cost prior to purchasing a new asset to determine whether or not it will be cost effective. It is also called the life cycle cost.
References in periodicals archive ?
a 33 per cent reduction in both the initial cost of construction and the whole life cost of assets ?
This creates greater visibility, inclusion and accountability of sustainable viability across functions and units: it evokes the ability to apply whole life cost analysis of asset ownership, and initiate post project measurement and verification, critical to deliver confidence in current and future energy and resource project savings claims.
The "whole life cost" of the new bridge is estimated to be around PS2.2m, and the replacement scheme is a joint project between Network Rail and the Vale of Glamorgan Council.
Foote, working with Meggitt, Smart Fibres Ltd., and Rolls-Royce, will study sensors for through-life engineering, which the Research Council defines as "designing high value systems such as aircraft engines that require less engineering service, and incur less whole life cost."
The island''s commercial fleet is almost wholly engaged in low mileage operations, while the high price of foreign oil imports means electric vehicles can deliver substantial whole life cost savings."
Liebherr warns that, "as with the purchase of any capital expenditure you can look at the immediate bottom line or determine the expenditure considering whole life cost. When the immediate bottom line price is low -- you may want to take a second look at what the haul truck will cost you over the life time of the vehicle." It claims that its AC drive diesel electric trucks provide better reliability with fewer moving parts and mechanical interfaces resulting in lower maintenance costs.
"Where fiscal objectives are cited, whole life cost savings and budgetary certainty feature highly.
This data can then be used to look how significant cost reductions can be made based on the whole life cost of vehicles.
Take into account cleaner CO ratings, lower tax and improved fuel economy, and there are potential whole life cost savings of more than pounds 1,000 annually.