DA Form 5605-4-R. Life Cycle Cost Analysis - Present Worth: Conventional Approach (LRA)

DA Form 5605-4-R serves as a tool for performing Life Cycle Cost Analysis (LCCA) assessments using the Present Worth method, specifically employing the conventional approach.

The form comprises sections where financial data related to a project or investment is entered. It includes fields for initial investment costs, annual operational expenses, salvage value, and discount rate. The form facilitates calculations based on the Present Worth method using these inputs.

Key fields in this form encompass initial investment amount, annual operational and maintenance costs, salvage value, and the applicable discount rate. Accurate completion of this form is critical for evaluating the present worth of a project over its lifecycle.

Application Example: An organization considering an investment in new equipment completes DA Form 5605-4-R. By inputting accurate financial data and using the Present Worth method, the organization can determine the project's financial feasibility and make informed decisions about potential investments.