Life cycle cost management of assets is critical to developing and maintaining effective capital plans. Trade-offs between operation and maintenance activities, rehabilitation and replacement options throughout the life of the asset must all be considered to assess the most cost-effective approach to providing expected levels of service. Activities will be presented at various stages of the degradation curve of the asset. Using roadways as an example, this presentation will examine different scenarios for a sample municipality, present different life cycle cost models, explore life cycle cost implications of increased initial capital expenditure, ongoing maintenance, periodic rehabilitation and ultimate replacement of the asset. This process on a specific asset will demonstrate generic considerations that are applicable to any asset class.