This question provided the cost for the installation, salvage at the end of the life of the system, maintenance, fuel, and repairs. I included the price of the salvage in my answer which was wrong. The explanation said that the salvage cost doesn’t count and should be omitted, but in the math provided in the explanation it looks like they SUBTRACTED the cost of the salvage from the total life cycle cost? I’m really not understanding this if someone could please explain! Thanks!
Hi @knsween - This question includes salvage cost in the answer which is correct. If you are provided with a salvage cost, you should include it in your LCCA. Note that the formula provided by MEEB (which is referenced in this question) is slightly confusing - they add ‘investment cost’ which is initial cost minus salvage cost.
The question says not to include replacement cost, which is different than salvage cost. Replacement cost is the cost for the new system after removing the old one whereas salvage cost is the amount of money, if any, you can sell the used unit for after it’s removed.