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Capital expenditure reserve
Check whether the capex reserve covers planned replacements.
Finance & unit economicsHow it's worked out
- Coverage = (balance + 5 × contribution) ÷ planned capex
- No interest on the reserve; even contributions
NoteBase planned capex on a component life-cycle study (roofs, lifts, chillers, facades).
Source: Reserve study practice (CAI National Reserve Study Standards)
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