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The Limitations Of Whole Life Appraisal Essay

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Whole Life Appraisal (WLA) method also known as Life Cycle Costing is the process of identification and documentation of all the costs that involved over the life span of assets. Managers, investors and owners from time to time require to make decisions concerning the investment, acquisition and ongoing usage of diverse assets such as plant and equipment, design, construction and repair costs of construction projects and maintenance of these facilities with the assets that are housed there-in. Whole Life Appraisal offers an opportunity for decisions makers to be able to evaluate the future costs involved in the projects they engage in so that they can make the best decisions. This is important because the future costs involved in usage and acquisition are usually greater than the initial costs of deploying these projects or acquiring assets. This essay will elaborate on the limitations of whole life appraisal (WLA) in making investment decisions for components, elements and whole projects. Introduction Whole Life Appraisal can assist decision makers in the construction industry to budget for resources required in the future, to appraise investments by comparing potential acquisitions, to decide which sources of supply to use and to account for any present and future resources used. In addition, construction managers can be able to improve the design components, maximize on operational support and determine the time when the economic life of assets will have ended so that a

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