Author Description

In today's complex business environment, both raising and application of fund becomes so costly. Thus, business needs to take a wise decision of investing funds in fixed facilities. NPV, PBP, IRR are some widely used tools in such situation most of which are based on projected revenues. LCC is special in a sense that it considers every cost category throughout the life of alternative projects from cradle to grave. If the amount of revenue is same across different alternatives, the analysis of costs becomes the first priority which is always emphasized in LCC. The theoretical foundation of LCC comes from literature review but the application of LCC in alternative choosing areas are the development of the authors. Application of mathematics including integration and economics are extensively used to make the analysis more rational. The use of mathematical tools and equations is an exemplary one that may be changed or modified to fit it with the typical context, if necessary. The methodology can be a guideline to finance professionals which finally concludes that the use of life cycle costing as an alternative selection tool results a better cost structure analysis over others.