Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VI. The effect of non-agreement of actual with probable life upon the determination of the depreciation or replacement requirement

Collection:: Economics Books

118 VALUATION, DEPRECIATION AND THE RATE-BASE Let it again be assumed that practically no article of a large group, all of which have a ro-year probable life, will survive 20 years or twice the probable life term, and that one-half or very nearly one-half of the failures occur within the two years just preceding and the two years just following the end of the prob- able life term. Then, according to the law of probability, and on the assumption that the failures may be bunched at the end of the successive years, there will be failures in each successive year as shown in Table 8. These are noted only to the nearest 5 in 10,000, and in other respects are offered only as approxima- tions to demonstrate a law rather than the result of accurate computation. TABLE 8. FAILURES AND EXPECTANCY ACCORDING TO THE LAW OF PROBABILITY ON THE ASSUMPTION THAT NO ARTICLE SURVIVES TWICE THE PROBABLE Lire TERM. 10,000 ARTICLES. PROBABLE LIFE = 10 YEARS For 10,000 articles. Single article. Remaining num- Remaining service Number of . Eo Expect ib = EE SR 15 10,000 100,000 10.00 35 9,985 00,000 9.00 | 8s 9,950 80,015 8.05 | 180 9,865 70,065 7.11 330 9,685 60,200 6.22 550 9,355 50,515 5-40 80s 8,805 41,160 4.78 | 1065 8,000 32,355 4.04 {£203 6,935 24,355 3.52 1 1340 5,670 17,420 3.08 0 1265 4,330 11,750 2:7% i 1065 3,065 7,420 2.42 8os 2,000 4,355 2.18 550 1,195 2,355 1.97 ; 330 645 1,160 1.80 Ib 180 315 515 1.64 ml 8x 135 | 200 I.50 18 3s 50 65 I.25 19 135 3 15 1.00 20 [a o 0 2 iy 1 Yer

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