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Describe the characteristics of affective commitment.
Present Value
The current worth of a future sum of money or stream of cash flows given a specified rate of return.
Modified Approach
An alternative accounting technique that allows governmental entities to report certain infrastructure assets at historical cost, foregoing the need for depreciation.
Infrastructure Depreciation
The systematic allocation of the cost of infrastructure assets over their useful lives, reflecting the consumption or the wearing out of physical assets like roads, bridges, and utility systems.
Maintenance Costs
Expenses incurred for the upkeep and repair of assets to ensure they remain operational and efficient.
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