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However, at the end of the 10 years, the home owner sells the house and recoups some of the initial additional investment costs. Depending on the residual value estimation approach, the present value net cost savings in life-cycle costs to the homeowner is either $41 714 or $84 997.
For example, suppose you plan on a three-year lifecycle. A $20,000 fixed server cost remains the same over three years, but an annual network connectivity cost of $500 would cost $1,500 per server over three years, and a $2,000 annual management database cost for the deployment would cost $6,000 over three years. Other organizations might use longer or shorter lifecycles.