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The study of the cost of an asset over its absolute physical life. Terotechnology looks at not only the initial cost of buying an asset, but also maintenance costs and how they may affect the asset's ability to produce profits for the company that owns it. The internal rate of return, net present value, and discounted cash flow are all tools used in terotechnology. It is important to note that a terotechnological analysis of an asset before buying it is only an estimate, and not an exact science.
terotechnology"the combination of management, financial, engineering, building and other practices applied to physical assets in pursuit of economic life cycle costs. Its practice is concerned with the specification and design for reliability and maintainability of plant, machinery, equipment, buildings and structures, with their installation, commissioning, operation, maintenance, modification and replacement with feedback of information on design, performance and costs". (BRITISH STANDARD BS3811 definition) See TOTAL PRODUCTIVE MAINTENANCE.
A study of costs associated with an asset throughout its life cycle,using analytical tools such as internal rate of return,present value,and discounted cash flow.The results are used to better manage the property.