AACE International defines _____________as a technique of economic evaluation that sums over a given study period, the costs of initial investment, replacements, operations, and maintenance/repair; expressed in either present or annual value terms.

The definition provided in the question is a near-verbatim match for AACE International's official definition of Life Cycle Cost (LCC). LCC is a comprehensive economic evaluation method used to assess the total cost of ownership of an asset or project over its entire lifespan. It aggregates all significant costs, including initial capital expenditure, ongoing operational and maintenance costs, and future replacement or disposal costs. These costs are then discounted to a common time basis, such as present value or equivalent annual value, to facilitate comparison between different investment alternatives.

A. Risk analysis: This is a process to identify and quantify uncertainties and their potential impact on project objectives, not a method for summing life-cycle costs.
B. Benefit/Cost ratio (B/C) method: This method compares the discounted value of benefits to the discounted value of costs, rather than just summing the costs as described.
C. Net present worth method: This method calculates the difference between the present value of cash inflows (benefits) and outflows (costs), not the total sum of costs alone.

1. AACE International, Recommended Practice No. 10S-90, Cost Engineering Terminology, (June 29, 2019).

Page 77: The definition for "LIFE CYCLE COST (LCC)" states: "A technique of economic evaluation that sums over a given study period the costs of initial investment, replacements, operations, and maintenance and repair of an investment decision. It is expressed in terms of present or annual value."

2. Amos, S. J. (Ed.). (2012). Skills & Knowledge of Cost Engineering (6th ed.). AACE International.

Section 3.3.4, Page 3.3.10: This section describes Life-Cycle Costing (LCC) as a method that "considers all costs that will be incurred over the entire life of a project or product... These costs include the initial investment, future replacements, annual operating and maintenance costs, and any salvage value."

3. AACE International, Recommended Practice No. 41R-08, Understanding and Applying Life Cycle Costing Methodology, (October 2, 2019).

Section 1.2, Page 2: This RP states, "Life cycle costing (LCC) is an economic assessment of an item, asset, system, or facility and the total cost of ownership over its life." It further clarifies that LCC is a summation of costs expressed in present or annual value.