The value adopted for the discount rate has a minimal effect on the outcome of the life-cycle costing analysis.

Question

Quizplus · Accepted Answer

The discount rate is a crucial factor in determining the present value of future costs and benefits in a life-cycle costing analysis. A higher discount rate would result in a smaller present value, while a lower discount rate would result in a larger present value. Therefore, the discount rate has a significant effect on the outcome of the life-cycle costing analysis.

The Value Adopted for the Discount Rate Has a Minimal