Tag:LCC method of life cycle costing calculation

№9|2016

INVESTMENT PROJECTS

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UDC 628.35.3:336.7

Gogina Е. S., Gurinovich A.i D.

The use of LСС method in evaluating the efficiency of investment projects of wastewater treatment facilities

Summary

The assessment of expediency investments in constructing new or upgrading the existing wastewater treatment facilities should be based on the advanced methods of analysis and calculation of the investment efficiency, social, environmental and other implications of ope­rating these projects. LCC method of calculating life cycle costing provides for the comprehensive efficiency analysis within the frames of feasibility study and business plan preparation for investment projects of municipal wastewater treatment facilities upon recommendation of international standards. The purpose of LCC method is the selection of the most efficient investment project among the other suggested at the minimum integrated life cycle cost over the course of a long period. LCC analysis assists in estimating the costs and making a choice basing on the total costs instead of the purchase cost of the equipment and construction and assembling operations since the operational expenses exceed significantly the cost of the purchased equipment during procurement. An example of making calculations with LCC method is presented. The results show that for the considered example with the highest initial investments in wastewater treatment facilities the life cycle costing was minimal as well as the basic operational parameters.

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