ABSTRACT
The life cycle cost of a building is the total cost commitment to that building and is the sum of the initial capital costs and future running costs. These costs are incurred at different times so they need to be discounted back to the present to allow them to be compared to the initial capital costs. These are standard techniques and tables are published for discounting future costs and expressing them as a single sum of money (Net Present Value or NPV) or as an annual flow of money (Annual Equivalent).
