March 5, 2004—A short paper describing an alternative approach to forecasting recapitalization costs based on a model of economic depreciation is being offered by Whitestone Research, specialists in applied economic research and software development.
Current assumptions in the facilities literature about depreciation and capital requirements are based on opinion and ad hoc models, says Whitestone. Planning for these expenditures, arguably $100 billion per year in the US alone, should be done with a more credible and objective model.
The economic depreciation approach should be particularly attractive for analysts requiring objective funding benchmarks, and for organizations with facilities portfolios so large that annual condition assessment is impractical, says Whitestone.
For more information, contact Whitestone Research by e-mail or at 805/884-9174.
