Hoping someone from NCARB can help answer this. I've asked this question before and am still struggling to find the answer almost a year later. In the NCARB 5.0 Handbook for PPD there is a sample problem for depreciation value which is based on INITIAL - SALVAGE / EXPECTED USEFUL LIFE = DEPRECIATION. I would like to know where in the list of reference materials this equation is given. I've read just about every reference book from front to back include MEEB and I can't find it ANYWHERE.
There is a small section in the back of MEEB however only deals with life cycle and payment period, no mention of depreciation. If we are going to need to know this formula for PPD/PDD I would like to know how to use it correctly. For example, what if salvage value is unknown, do you use the same formula or is there another formula we need to know to solve for salvage value?
Is salvage value the same thing as residual value?
How are candidates to answer questions on project costs and budget related to depreciation if the only reference is one question from the 5.0 Handbook?
Really hoping someone from NCARB can chime in, or anyone that's been able to find how to use this formula correctly.
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