II2 VALUATION, DEPRECIATION AND THE RATE-BASE
of which have a probable life of # years, after the plant is »
years older than any of these parts, will be about one nth of
their replacement cost.
In a plant which continues to grow, the theoretical annual
replacement requirement will gradually approach but can never
quite reach one nth of the total replacement cost. (See Tables
4 to 6.)
TABLE 4. REPLACEMENT REQUIREMENTS
NUMEROUS ARTICLES. PROBABLE LIFE 5 YEARS
Each article is replaced as it goes out of use. For an original investment
of $100 with no betterments or additions. Also for an investment growing
at the uniform rate of $100 per year.
(For the special hypothesis as stated in the text.)
Plant of full growth,
otigtanl Jioesiment Growing plant, annual investment $100.
100.
Replacements per year. Replacements per year.| Rerlyenients Por $100
$ 4.00 $ 4.00 $ 4.00
8.16 12.16 6.08
12.65 24.81 8.27
17.64 42.45 10.61
23.34 65.78 13.16
21.07 87.75 14.62
21.16 108.91 15.56
20.54 129.45 16.18
19.73 149.18 16.58
Lo 18.31 167.49 16.75
II 19.73 187.22 17.02
12 20.37 207.60 17.30
1; 20.45 228.05 17.54
20.21 248.25 7-73
wr 19.90 268.16 17.88
16 19.87 288.03 18.00
2h 19.01 307.94 18.11
¥3 20.03 327.92 33.22
ia 20.06 347.95 18.31
20 20.02 368.00 18.40
21 20.00 388.02 18.48
22 20.00 408.00 18.55
27 20.00 428.00 18.61
24 20.00 448.00 18.67
23 20.00 468 .00 18.472

Vear