LIFE CYCLE COST CALCULATIONS
The formula for calculating the future cost of an item with a known cost today and a known escalation rate is: % 1 5 6 Ò ¾ º Ë ? Ò L % 1 5 6 Ò ¾ º Ë ? 41 E ' 5 % ; Ò Where: COSTYEAR-Y is the cost at Y years in the future COSTYEAR-0 is today’s cost (at Year 0) ESC is the escalation rate Y is the number of years into the future Study Life ................
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