DSC
Superstar
Yes, and no. Let's say you have to rebuild a road and the expected life is (say) 50 years; if you replace the gas pipes, conduits and water mains at the same time it clearly costs more. This is all very well if they are approaching the end of their expected life but if they have 20 years left then it is probably not worth replacing them. If they have 5 years left it probably is. It's a balancing act and the owner of the assets may not have budgeted $$ to do a replacement early so it throws off other projects.How is it an extra expense when it is work that would have to be done regardless? We're saving money by doing it all at once.