Life Cycle Cost - Recurring Costs

Recurring costs tab on Life Cycle Cost Dialog

Recurring costs are costs that repeat over time on a regular schedule during the study period. If costs associated with equipment do repeat but not on a regular schedule, use the Non-recurring costs tab instead.

Number of recurring costs

The number of recurring costs applied in this life-cycle cost can be selected from the dropdown list. For each recurring cost the following data must be entered.

RECURRING COST N SETTINGS

Name

The identifier used for this recurring cost. The name is used in identifying the cash flow equivalent in the output results in the Life-Cycle Cost Report.

Category

Enter the category of the recurring costs. Choose the closest category. The options include:

The default value is 3-Maintenance.

Note: For recommendations on estimating other operational costs, see NIST 135 Section 4.6.3.

Cost

Enter the cost (local currency) for the recurring costs. Enter the cost for each time it occurs. For example, if the annual maintenance cost is $500, enter 500 here.

Start of costs

Enter when the costs start. The First year of cost is based on the number of years past the Start of costs. For most maintenance costs, the Start of costs should be 1-ServicePeriod. The options are:

The default value is 1-ServicePeriod.

Years from start

This field and Months from start (below) together represent the time from either the start of the Service period, on the service month and year, or start of the base period, on the base month and year (depending on selection from the Start of costs field) that the costs start to occur. Normally, for most maintenance costs that begin in the first year that the equipment is in service the Start of costs is the service period and the Years from start will be 0. Only integers should be entered representing whole years. The default value is 0.

Months from start

This field and Years from start (above) together represent the time from either the start of the Service period, on the service month and year, or start of the base period, on the base month and year (depending on the Start of costs field) that the costs start to occur. Normally, for most maintenance costs the Start of costs is the Service period and the Months from start will be 0. Only integers should be entered representing whole months. The Years from start (times 12) and Months from start are added together. The default value is 0.

Repeat period years

This field and Repeat period months (below) indicate how much time elapses between re-occurrences of the cost. For costs that occur every year, such as annual maintenance costs, the Repeat period years should be 1 and Repeat period months should be 0. Only integers should be entered representing whole years. The default value is 1.

Repeat period months

This field and Repeat period years (above) indicate how much time elapses between re occurrences of the cost. For costs that occur every year the Repeat period years should be 1 and Repeat period months should be 0. For, costs that occur every eighteen months, the Repeat period years should be 1 and the Repeat period months should be 6. Only integers should be entered representing whole years. The Repeat period years (times 12) and Repeat period months are added together. The default value is 0.

Annual escalation rate

Enter the annual escalation rate as a decimal. For a 1% rate, enter the value 0.01. This input is used only when the Inflation approach is 2-CurrentDollar. The default value is 0.