Research on the construction and application of LCC based auxiliary decision model in the early stage of project

Based on the research results of life-cycle cost, the application scenarios in the early stage of the project are explored. In the past, equipment selection was carried out based on experience on the basis of the purchase cost and related technical parameters, without considering the cost during the later operation of equipment. This paper explores the application of life-cycle cost for equipment selection, so as to provide a scientific and effective quantitative analysis tool for equipment selection. In the past, the cost of financial evaluation projects of feasibility study used simple proportion estimation method. In this paper, we explore the application of life-cycle cost to calculate project cost, so as to improve the calculation accuracy of financial evaluation of feasibility study, promote the deep integration of finance, equipment and investment business decision-making, and improve investment efficiency and benefit.