Annual worth (AW) analysis allows engineers to evaluate project alternatives that have different lives by converting all cash flows to equivalent uniform annual amounts at a discount rate. The key advantages of AW analysis are that it only requires calculating values for one life cycle and all cash flows for subsequent cycles will be the same. Engineers can use AW analysis to evaluate both finite-lived and perpetual project alternatives. Life-cycle cost analysis takes a broader perspective by considering all costs incurred over a project's full lifespan from concept to disposal.