Question on depreciation value.. can you calculate depreciation value of say a mechanical system WITHOUT knowing the salvage value?
Based on the NCARB 5.0 Handbook, in order to calculate depreciation value, you would need to know the initial cost of the system, salvage value and expected useful life. The calculation in the handbook is: INITIAL - SALVAGE / EXPECTED USEFUL LIFE = DEPRECIATION.
If you do not know the salvage value would it just be initial/expected useful life = depreciation?
Related, do you need to factor in maintenance costs over time to calculate depreciation?
Please sign in to leave a comment.