What does life cycle costing take into account?

Life cycle costing is a comprehensive approach to analyzing the total cost of ownership for a project, which includes not only the initial costs but also ongoing and future costs that will arise throughout the project's lifespan. Option D recognizes that life cycle costing incorporates the costs associated with maintenance and operations over time, which are crucial for understanding the overall financial impact of an asset or project.

By considering these long-term costs, stakeholders can make more informed decisions that take into account the total expenditure, rather than focusing solely on the initial purchase price or financing costs. This holistic view enables better budgeting, resource allocation, and investment strategies that ultimately promote sustainability and efficiency throughout the asset's operational period.

In contrast, the other options emphasize narrow aspects of cost consideration, such as just the purchase price, financing costs, or even exclude significant elements like maintenance, which may lead to incomplete assessments of a project's economic viability.