【正确答案】Lifecycle costing records the costs of a product ‘from cradle to grave’, taking into account the environmental consequences across the whole life of the product. In order to appraise a project correctly, cost recording systems must capture all costs. In particular for a nuclear power station, these must include: – those costs incurred prior to production such as costs of handling regulatory difficulties and design choices, and also – those costs incurred after production ceases such as the clean-up costs of decommissioning and decontaminating the site and safely storing all waste. It is important that these costs are identified and included in the initial project appraisal. In the case of Maxwell building a new nuclear power station, there are the uncertain costs up front associated with the regulatory process which could include the financing costs associated with delays in the project while regulatory approval is sought. There is the normal uncertainty over the building cost when a project costs $6bn and takes five years to complete. Finally, there is the estimated $1bn in decommissioning costs which again carry uncertainty. If Maxwell is to be able to claim to be financially and environmentally responsible, then it must have plans in place to cover these costs.