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Topic: Technology
Number of pages / Number of words: 13 / 3606
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All costs are entered as base-year amounts in today's dollars; the LCCA method escalates all amounts to their future year of occurrence and discounts them back to the base date to convert them to present values.

Initial costs

Initial costs may include capital investment costs for land acquisition, construction, or renovation and for the equipment needed to operate a facility...


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This would be the case, for example, when comparing the cost of renovating an existing facility with new construction on purchased land.

Construction costs: Detailed estimates of construction costs are not necessary for preliminary economic analyses of alternative building designs or systems. Such estimates are usually not available until the design is quite advanced and the opportunity for cost-reducing design changes has been missed...


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