The difference between life cycle cost analysis and traditional investment evaluation index

(1) The basic points of traditional cost comparison method and cost efficiency (CE) method are the same. When the system efficiency is fixed, the smaller the life cycle cost, the better. (2) Compared with the payback period method, the life cycle cost method is used to recover the investment, while the traditional payback period is used to recover the project start-up expenses. (3) Compared with the return on investment, the numerator of the return on investment is the system efficiency expressed by the amount. That is, the design fee, and the numerator of the cost efficiency method can be the system efficiency expressed by the amount or quantitative value, and the denominator is the life cycle cost, including installation fee and maintenance fee.