Question
The innovative replacement program is estimated to last for 250 years. Rerun your analysis again beyond the five-year current replacement cycle in 10-year increments and
The innovative replacement program is estimated to last for 250 years. Rerun your analysis again beyond the five-year current replacement cycle in 10-year increments and determine the inflection point where the district would prefer to invest in the innovative program. If a project has a 250-year life, should the district base capital investment decisions on a five-year analysis? Do you think 250 years is a realistic time frame for the analysis? How reliable are your base assumptions with very long-range analysis? Using your long-term findings, make a specific recommendation, assuming no other relevant decision factors, and explain the factors that led you to that decision.
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