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<br />r-- <br />c <br />~-. <br />N <br /> <br />c <br /> <br />All items or parts, the installed cost of which is $5,000 <br /> <br />or more at time of replacement, shall be charged to replacement <br /> <br />reserves. All items or parts, the installed cost of which is <br /> <br />less than $5,000 at time of replacement, shall be charged to <br /> <br />maintenance. <br /> <br />lliID1 <br /> <br />The selection of a probable life for a unit of installation, <br /> <br />such for eXffil~le as a generator (35 years), reco~lizes the <br /> <br />expectation that the demand for complfcte replacement of all <br /> <br />replaceable parts of the unit ~ill not come all in a single <br /> <br />demand at the end of 35 years, but that such demanCls will <br /> <br />presumably come at various times distributed through the <br /> <br />entire amortization ,eriod. The 35 years is then estimated <br /> <br />simply as a period roprcsenting a weighted average of such <br /> <br />demands. <br /> <br />However, the en tire sum di sposable for roplacements on <br /> <br />this unit is to be accumulated through say 'JJ years instead <br /> <br />of 35. At the end of 35 years, therefore, the full sum will <br /> <br />not have been accumulated ~Jd if the weighted demands are <br /> <br />assumed to be equi valen t to the full sum, the defi ci t must <br /> <br />be provided from the general pool of replacement reserve, and <br /> <br />a debt thereby created, which debt must be liquidated by the <br /> <br />specified annuity accumulating through the remaining 15 years <br /> <br />of the period. <br /> <br />"" <br />