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Base Year

The first year (or reference year) of the study period or planning horizon

This base year can mean any of the following:

The base year may or may not be equivalent to the "current year".

Base Year as a Reference Point

The base year will coincide with the owners' fiscal year or calendar year and reflects the (first annual) opening balance in the study.

The base year is essential in many financial studies as the calculations of future year dollars are calculated off this year.

The base year is used to measure proximity to future projects and/or past projects.

More specifically, the base year is a reference measure of the distance (in years) to the points of Potential Failure ("P") and/or Functional Failure ("F") on the P-F interval.



Fluidity of the Base Year

The base year helps to define the boundary between "in-the-horizon" and "behind-the-horizon".

As the building ages each year, the base year shifts forward by one year. See: shifting horizon and living document
and dynamic rollover or carry forward.
The base year (and terminus year) on a 10-year tactical plan.
Fig. The base year (and terminus year) on a 10-year tactical plan.

The base year (and terminus year) on a cash flow table.
Fig. The base year (and terminus year) on a cash flow table.

Proximity of the base year to future projects and past projects across a 10-year tactical plan.
Fig. Proximity of the base year to future projects and past projects across a 10-year tactical plan.


Proximity of the base year relative to Potential Failure ("P") and Functional Failure ("F") along the P-F curve.
Fig. Proximity of the base year relative to Potential Failure ("P") and Functional Failure ("F") along the P-F curve.



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