Whole life costing: Completing the analysis: Asset investment strategies, business planning and financing for infrastructure companies 2011

For many large infrastructure companies, including utilities, choosing an asset management strategy will impact the businesses´ funding requirement from debt providers and shareholders. Significant asset related expenditure will require additional financing (debt or equity) and the company will need to understand what the expenditure plans means for their financial position. Capturing the interdependency between the cost of financing and investment planning is critical to assessing true whole life costs of asset ownership this paper described two approaches to achieving the true whole life cost assessment.