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Investments glossary

Whole-Life Cost


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Drugs are not always necessary, but belief in recovery always is.

— Norman Cousins

Whole-life cost is the total expense of owning an asset over its entire life, from purchase to disposal, as determined by financial analysis. It is also known as a life-cycle cost, which includes purchase and installation, design and building costs, operating costs, maintenance, associated financing costs, depreciation and disposal costs. Whole-life cost also takes into account certain costs that are usually overlooked, such as those related to environmental and social impact factors.


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