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Life-cycle cost analysis

Life-cycle cost analysis (LCCA) is a tool to determine the most cost-effective option among different competing alternatives to purchase, own, operate, maintain and, finally, dispose of an object or process, when each is equally appropriate to be implemented on technical grounds. For a pavement, in addition to the initial construction cost, LCCA takes into account all agency costs related to future activities, including future maintenance and rehabilitation. On occasion, user costs are also considered (e.g., reduced capacity at work zones). All the costs are usually discounted and total to a present-day value known as net present value (NPV).

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