Accuracy of cost estimates is one of the uncertainties in this type of decision. 
Definitions:
Annum
A term referring to a year, often used in financial contexts to describe periods of time related to investments or contracts.
Variable Interest Rate
An interest rate that can fluctuate over time based on underlying benchmarks or indexes.
Accrued Interest
Interest that has been incurred but not yet paid, typically referring to the interest accumulating on a bond or loan between payment periods.
Equivalent Payment
A payment amount that equates the present value of two or more different payments.
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