TEROTECHNOLOGY

Study of the costs relative to an asset throughout its life cycle, from acquisition or disposal. The approach seeks to cut down different costs incurred at every stage of an asset’s life, as well as to develop ways to prolong its lifespan. This multidisciplinary approach employs several tools including net present value, internal rate of return, and discounted cash flow. Costs associated with the asset include engineering, expenses for operating the equipment, operating costs, maintenance, and disposal costs. Also called life-cycle costing.

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