Full text: Valuation, depreciation and the rate base

ACTUAL AND PROBABLE LIFE ; 
In addition to the probable failures from year to year, 
Table 8 also shows the number of original articles in a group 
of 10,000 that will be still in service in any year; the probable 
remaining service years in the surviving articles of the original 
group; and the expectancy of any single article at any age. 
TABLE 9. REMAINING VALUE AND REPLACEMENT 
REQUIREMENT 
REMAINING VALUE oF Numerous ARTICLES WHICH HAVE ALL COME INTO 
USE AT THE SAME TIME AND ALSO THE REPLACEMENT REQUIREMENT. RE- 
MAINING VALUE OF A SINGLE ARTICLE. ORIGINAL INVESTMENT $100. 
PROBABLE LIFE 10 YEARS 
Failures assumed to occur according to the law of probability. 6 per 
cent interest. 
Single article. Numerous articles. 
Remaining value. CL 
Vear. Expectancy ~ Ryman R placemany 
Begin. : :~ ' Equal Annual ua requirement 
gore Sone ne Same! Ail Gini. 
ginning of year, ginning of year 
10.00 $100.00 $100.00 $100.00 $ o.15 
9.00 90.00 92.41 92.55 ©.35 
8.05 | 80.50 84.57 84.94 0.85 
7.IY 71.10 76.79 78 .00 | 1.80 
6.22 62.20 68.80 69.61 3.31 
5.40 54.00 61.06 63.34 5.53 
4.78 47.80 55.00 59.63 8.12 
4.04 40.40 47.49 56.23 10.80 
3.52 35.20 41.92 56.56 12.95 
3.08 30.80 37.18 58.99 13.96 
2.71 27.10 33.01 tie nn 13.62 
2.42 24.20 29.70 teens 12.23 
2.18 21.80 26.96 FEN 10.47 
: 1.97 19.70 24.53 en, 9.01 
. 1.80 18.00 22.50 81.67 8.11 
I 1.64 16.40 20.55 ein sine 8.04 
i 1.50 15.00 18.87 sein ke 8.53 
I> 1.25 12.50 15.84 ok Salty 9.33 
I) 1.00 10.00 12.82 EE 10.16 
20 Src nvre see Viele Jute 62.86 10.67 
21 of sts 6 aioe io 0 ox . anwin’s 10.93 
22 Ses nd . viniaole oat wa ceemi ly 10.87 
: Morte, IPRA as + sibel 10.56 
7 was vin <aiviesle Yen'aaie Tr Tires 10.18 
a Se a aha wets sat 65.85 9.82 
26 | aie Te wine od eran s $e ons 9.58 
27 a *loveinlote vv itinie a Suits ain 9.56 
28 dvds Salen roe wis Wwe 9.64 
29 teleais ie aiaiele TA fuels 9.82 
3 Per ay el st 64.47 9.92 
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