-
$l$ : lifespan of the item in years -
$a$ : current age of the item -
$p$ : current price of item -
$r$ : inflation rate per year (as a number > 1 i.e. 1.03) -
$f$ : initial reserve for the item -
$y_i$ : amount set aside for the item at year$i$
We would like to have a capital improvements plan where our: