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Expenditure Model
Merge with "expenditure plan"

Mathematical calculations to project future capital expenses (CapEx) by evaluating the current condition and forecasting the expected remaining service life of an asset or group of assets. 

The expense model determines:

The expense model tell the owners: "How much money will we need?" whereas the funding models answers the question" "How much money will we have?".

A reserve study is typically comprised of one expense model upon which multiple funding models are generated.

The pattern of the expenditure model is fluid and will be affected by the following:?



The expenditure model is one the first steps in the financial analysis.
Fig. The expenditure model is one the first steps in the financial analysis. It asks the question: "How much  money will we need?"

Expenditure model represented as a distribution of costs over time (in a 10-year tactical plan)
Fig. Expenditure model represented as a distribution of costs over time (in a 10-year tactical plan).

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