The life cycle cost (LCC) of any piece of equipment is the total “lifetime” cost to purchase, install, operate, maintain, and dispose of that equipment. Determining
LCC involves following a methodology to identify and quantify all of the  components of the LCC equation.

When used as a comparison tool between possible design or overhaul alternatives, the LCC process will show the most cost-effective solution within the limits of the
available data.

The components of a life cycle cost analysis typically include initial costs, installation and commissioning costs, energy costs, operation costs, maintenance and repair
costs, down time costs, environmental costs, and decommissioning and disposal costs.