Life-Time Cost Calculation (Cont.)
For example, the DS3 line between the MHPCC and the mainland was leased on a 7 year term but cancelled after 3 years (to be replaced by a DREN line).
Reason - The 7 year lease cost for 36 months plus the termination penalty was much less than a simple 3 year cost for 36 months. This saved the MHPCC several hundred thousand dollars.