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  • Equipment Depriciation

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    Naison Stanley
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    This document contains information about calculating the equivalent uniform annual cost of owning a loader over its expected life and salvage value. It provides the purchase price of the loader, expected life in years and annual usage in hours. It also lists the salvage value and cost of capital. The summary calculates the equivalent uniform annual cost using the time value and annual average investment methods, breaking it into depreciation and cost of money portions.

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    This document contains information about calculating the equivalent uniform annual cost of owning a loader over its expected life and salvage value. It provides the purchase price of the loader, expected life in years and annual usage in hours. It also lists the salvage value and cost of capital. The summary calculates the equivalent uniform annual cost using the time value and annual average investment methods, breaking it into depreciation and cost of money portions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views3 pages

    Equipment Depriciation

    Uploaded by

    Naison Stanley
    This document contains information about calculating the equivalent uniform annual cost of owning a loader over its expected life and salvage value. It provides the purchase price of the loader, expected life in years and annual usage in hours. It also lists the salvage value and cost of capital. The summary calculates the equivalent uniform annual cost using the time value and annual average investment methods, breaking it into depreciation and cost of money portions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    A: Equivalent uniform period series required to replace a present value of the Purchase Price less tyre cost.

    A-salvage: Equivalent uniform end-of-period series required to equal the future salvage value.

    Expected Service Hours per year


    No. Description Purchase Price
    Life (n) use

    1 Loader K135,000.00 7 1200


    2
    3
    4
    5
    6
    7
    8
    9
    10
    Depriciation Portion of Ownership Cost

    rice less tyre cost. Cost of Capital (i) = 8%

    TIME VALUE METHOD


    Purchase Price Salvage Value at 'n'
    Cost of Tyres
    Less Tyres year(s) A A-salvage

    K0.00 K135,000.00 K47,250.00 K25,929.77 K5,295.42


    0
    0
    0
    0
    0
    0
    0
    0
    0
    E VALUE METHOD ANNUAL AVERAGE INVESTMENT METHOD
    Hourly Depriciation Ownership
    Annual Average Cost of Money Straight-line
    (Time Value Method) Depriciation (AAI)
    Investment (AAI) Portion depriciation portion
    (K/hr) (K/hr)
    K17.20 K97,392.86 K6.49 K10.45 K16.94

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