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expenditure that involves only remodeling of an existing facility unless the remodeling includes an expansion of the facility;

(8) leasing of equipment or space occupied by the facility, based on

(A) the net present value of the lease; for purposes of this subparagraph, “net present value” means the total lease payments over the useful life of the asset, less the existing age of the asset, as set out in the 2008 edition of Estimated Useful Lives of Depreciable Hospital Assets, published by the American Hospital Association and adopted by reference;

(B) the total cost of any leasehold improvements; and

(C) the total cost of any fixtures or equipment purchased or leased without regard to depreciation;

(9) undertakings essential to a component listed in this subsection; those items include

(A) studies, surveys, designs, plans, working drawings, site acquisitions and preparation, financing costs, research, training, and consultant costs; and

(B) for purchase of equipment, the cost of shipping and installation in addition to undertakings listed in (A) of this paragraph;

(10) donations in kind or transfers to a health care facility, including land, buildings, equipment, furnishings, and fixtures, which if acquired directly by the facility would be included as an expenditure, valued at the fair market value of the asset at the time of its donation or transfer. (b) For an expansion of an existing facility, only the value of the land that will be used for the expansion will be considered an expenditure. (c) For purposes of determining whether AS 18.07.031(a) and this section apply to a specific activity, the expenditure of more than one person for the same activity will be considered the expenditure of the person conducting the activity. (d) Repealed 8/11/2010. (e) For the purposes of determining whether AS 18.07.031(a) applies to a specific activity, the department will exclude an expenditure for a nonclinical purpose if

(1) the sponsor of the activity is an enrolled Medicaid provider, and that expenditure is not included in the Medicaid prospective payment rate methodology under 7 AAC 150; and

(2) the applicant submits information to the department that explains to the satisfaction of the department

(A) the purpose of the expenditure;

(B) how the expenditure is for a nonclinical purpose only; and

(C) the total project cost for all expenditures for nonclinical purposes.