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However, at the end of the 10 years, the home owner sells the house and recoups some of the initial additional investment costs. Depending on the residual value estimation approach, the present value net cost savings in life-cycle costs to the homeowner is either $41 714 or $84 997.
Due to the probabilistic nature and the need of cost benefit analysis, the IT risks are managed following a process that accordingly to NIST SP 800-30 can be divided in the following steps: 1  risk assessment, 2  risk mitigation, and. 3  evaluation and assessment.