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Formulas & Models
|Over the past few decades,
particularly since the 1950s, a
number of different formulas models have been developed in an effort to
for major maintenance
and renewal costs at
different stages in the facility
Expense Quantification Formulas
The alternative formulas to determine the capital load can be classified into two broad classes: a) top-down formulas and b) bottom-up formulas. They ask the question: "How much money will we need?". These models form part of the expenditure plan in the financial analysis.
Reinvestment formulas can be grouped into three general categories, as follows:
Funding Allocation Models
Listed below are two groups of funding models that are used once the expenditures (capital load) has been quantified. In other words, they ask the question: "How much money will we have?". They are a method of seeking equilibrium.
Fig. Relationship between a) How Much Money will we Need? and b) How much money will we have?
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