##### Pempa Pempa

Program Officer
| Bhutan

# Costing

Asked: 13 Dec 2019 |
1094

For instance, the equipment was bought in 2017 and its lifespan is 10 years, I want to calculate the cost of this equipment for 2019.
How do I annulize the cost of medical equipment?
Do I need to convert the cost of equipment to current year using CPI before annulizing the cost or annulize directly using the EAC formula?
If I use CPI and converted to 2019 value, then to calculate the EAC for 2019, can I take useful life of equipment as 8 years (i.e, subtracting the no.of years used from the total lifespan)?
Thank you for your time.