DA Form 5605-5-R. Life Cycle Cost Analysis - Present Worth: One-Step Approach (LRA)

DA Form 5605-5-R is used to conduct Life Cycle Cost Analysis (LCCA) assessments utilizing the Present Worth method, employing the one-step approach.

The form includes sections where key financial data, such as initial costs, annual operational expenses, salvage value, and discount rate, are recorded. It enables calculations based on the Present Worth method using these inputs.

Crucial fields in this form encompass the initial investment amount, annual operational and maintenance costs, salvage value, and the applicable discount rate. Accurate completion of this form is vital for evaluating the present worth of a project over its lifecycle using the one-step approach.

Application Example: A financial team uses DA Form 5605-5-R to assess the potential acquisition of a new software system. By accurately entering the necessary financial data and using the one-step Present Worth method, the team can compare the costs and benefits of the investment and make an informed decision.