Question: LCC-life cycle cost. Answer the question by showing calculation. The Ministry Defense asked a defense contractor to estimate the life-cycle cost for a proposed light-duty

LCC-life cycle cost. Answer the question by showing calculation. The Ministry

LCC-life cycle cost.

Answer the question by showing calculation.

The Ministry Defense asked a defense contractor to estimate the life-cycle cost for a proposed light-duty support vehicle. The list of items included the following categories: R\&D costs (R\&D), nonrecurring investment costs (NRI), recurring upgrade costs (RU), scheduled and unscheduled maintenance costs (Maint), equipment usage costs (Equip), and phase out disposal costs (Po/D). Determine the Annual LCC at an interest rate of 10% per year using the cost estimates (shown in RM1 million) for the 20 -year life cycle

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