Today’s automation industry quiz question comes from the ISA Certified Automation Professional certification program. ISA CAP certification provides a non-biased, third-party, objective assessment and confirmation of an automation professional’s skills. The CAP exam is focused on direction, definition, design, development/application, deployment, documentation, and support of systems, software, and equipment used in control systems, manufacturing information systems, systems integration, and operational consulting. Click this link for more information about the CAP program.
In the lifecycle economic model, the economic profile is defined as lifecycle benefits less lifecycle costs. Which statement below is true about the lifecycle economic model?
a) lifecycle benefits can be realized from project years 1 through 5 only in order to comply with tax regulatory guidelines, regardless of the useful life of the project.
b) all lifecycle costs should be considered over the entire expected life of the project, with all costs calculated on a net present value basis.
c) lifecycle costs for the project should include all costs to the operation, whether or not they were incurred as a result of the installation of the project.
d) non-operational costs, such as engineering and construction costs, should not be considered as part of the lifecycle costs calculation, since they are one-time charges.
e) none of the above