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<strong>CMS</strong>-1403-FC<br />

(1/(minutes per year * usage)) * price * ((interest<br />

rate/(1-(1/((1 + interest rate) ** life of equipment)))) +<br />

maintenance)<br />

Where:<br />

minutes per year = maximum minutes per year if usage<br />

were continuous (that is, usage = 1); 150,000 minutes.<br />

usage = equipment utilization assumption; 0.5.<br />

price = price of the particular piece of equipment.<br />

interest rate = 0.11.<br />

life of equipment = useful life of the particular<br />

piece of equipment.<br />

maintenance = factor for maintenance; 0.05.<br />

Note: To illustrate the PE calculation, in Table 1 we<br />

have used the conversion factor (CF) of $36.0666 which is<br />

the CF effective January 1, 2009 as published in this final<br />

rule.<br />

58

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