Question

A life-cycle cost (LCC) analysis is being used to help determine whether the purchase of a high-performance heating ventilating and air conditioning (HVAC) system is cost-effective. What would this analysis not consider?

a) Comparison with other measures of economic evaluation.
b) Cash flows made time-equivalent by converting them to present values.
c) Appropriate risk and uncertainty assessments.
d) Customer satisfaction survey responses.

Answer 1

A life-cycle cost (LCC) analysis considers all costs associated with owning and operating a system over its entire life cycle. It may not directly consider d) customer satisfaction survey responses.

Step-by-step explanation:

A life-cycle cost (LCC) analysis is a method used to evaluate the total cost of owning and operating a system or asset over its entire life cycle. It considers all costs associated with the system, including initial purchase, installation, operation, maintenance, and disposal.

In the case of a high-performance HVAC system, the LCC analysis would consider factors such as the initial cost of the system, energy consumption, maintenance costs, and expected lifespan.

However, one thing that an LCC analysis may not consider is customer satisfaction survey responses. While customer satisfaction is an important factor in evaluating the overall performance and effectiveness of a system, it may not be directly included in the numerical analysis of costs and benefits.