Portland is a PR machine for light rail & streetcar
Here are Some Facts About Portland Oregon
Annualization of Capital Assets
The factor for annualizing any cost is given by the following:
t is the number of years a component or vehicle is expected to remain in service
i is the discount rate (7 percent for compliance with OMB guidance).
Note that the value of the annualized cost factor declines as the number of service
years for a component increases (i.e., as the cost of that component is spread over
an increasing number of service years).
The values for the annualized cost factor at different years of service are presented
in Table D-1 (for the sake of comparison, Table D-1 also includes the value of 1/years,
a frequently used but imprecise means of estimating annualized cost).