Nine out of ten calculations we come across upon in our practice are wrong. Five out of ten would have lead to different, better decisions if they had been calculated properly!

With the Life Cycle Costing (LCC) calculations S&G has helped to reduce capital costs up to:

• 70% in gas and electricity utilities;
• 30% in airports;
• 30% in water utilities.

The LCC method of S&G:

• includes the principles of Net Present Value (NPV) in relation to the time value of money;
• extends this method with the principles of economical replacement moment, which is not included in the NPV;
• translates the NPV value to a price per year and per product;
• visualizes the results in the charts. In this way the LCC method contributes to ‘design to costs’;
• including “traditional indicators” such as ROI, IRR, payback period, but also cash flow, company tax algorithms, indexing and even the effect of environmental aspects.