Title: Perform a life-cycle cost analysis.
Course: Sustainability and Renewable Technologies (21053) > Section: Exploring the Economics of Sustainability

Performance should include the costs of a system or a component over its entire life span. Typical costs for a system may include

- acquisition costs (or design and development costs)
- transportation costs
- operating costs, such as
  - cost of failures
  - cost of repairs
  - cost for spares
  - downtime costs
  - loss of production

- disposal costs
- human resources
- recovery/recycling.

A complete life cycle cost (LCC) analysis may also include other costs, as well as other accounting/financial elements (e.g., discount rates, interest rates, depreciation, and present value of money).

Teacher Resource:

- Buy, Use, Toss? A Closer Look at the Things We Buy, (https://peacelearner.files.wordpress.com/2012/10/buy-use-toss-complete-unit.pdf)

Process/Skill Questions:

- What are the considerations of true cost to include in a life-cycle cost analysis?
- What is a life-cycle cost analysis, and how can it inform consumer decision making?
- When during the cycle is system or product most expensive?
- What elements of a product’s cost matter most to consumers? What elements of a product's cost do consumers traditionally ignore?