Valuation, depreciation and the rate base

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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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. Possible procedures when the rates for a public service are to be fixed

Collection:: Economics Books

172 VALUATION, DEPRECIATION AND THE RATE-BASE culation is necessary, as already stated, for each perishable article and for each year under the Equal Annual Payment Method, while for the more rational Sinking Fund Method, a single simple calculation suffices for each group of articles of the same probable life term. For comparison the application of the other methods of pro- cedure to the same generator may be of interest. By the “ Straight Line Method ” (correct under continuous application from the beginning and agreement between actual and probable life) there will be: Original investment. ........vovusvareseecernaeasese + °D Life (new)... ik ial aah ol te aloe eels |] 20 YEATES IIE IT) SCTVACE le is - «in ula elalrela ia i 5 ale ule losis BESES VERTS Remaining dife...h L000 LG LAL LL CLR IEEDS Years Accrued depreciation (amortization to dafe).ln hl 4g Remaining value... chin Ue LL iio 25 Interest on remaining value. ................ cee ov. $1.50 Annual depreciation or amortization increment for sixteenth Year. LiL ni as ce vv v.04 io MS5. OO Required net earnings. ......-- -. Ls eixla ia i waa ts MIR GO. SO By the “ Unlimited Life Method ”’ on the assumption that there is only a single generator and that the annual replacement increment is estimated by the compound interest annuity method: Original investment .........coeverenenrneeceeeenenn. wi Lie (NeW) dual aie cles sins oaisiainis sols laiel, LJE20 YEOTS TIME A SCEVICE. Jina v4 =n lee asl alates a years Remaining life... ...coeeun.enatn ; years Interest on the investment. .............. « ceeieeaeeie cnn $6.00 Annual replacement increment. .............ceeeeee 2.72 Required net earnings. .. oo. vxvocesvesncnsrasesencnananee $8.72 The foregoing comparisons, as above stated, are based on the assumption, which can never be fully realized, that there is ab- solute agreement between the actual and the probable life of each article. Effect of Departure of Actual Life from Probable Life. — To illustrate the application of the various methods of procedure with some regard to the fact that of many articles having the BIO Rr

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