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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.
TAM â Life Cycle Costing Guideline 6 3 The Life Cycle Costing process 3.1 Overview As shown in the attached diagram, Life Cycle Costing is a six-staged process. The first four stages comprise the Life Cost Planning phase with the last two stages incorporating the Life Cost Analysis phase..3 Distribution of costs over the asset life cycle Life Cycle Costing can be carried out during any or all phases of an asset's life cycle. It can be used to provide input to decisions regarding asset design, manufacture, installation, operation, support and disposal.