Full text: Valuation, depreciation and the rate base

$ 
AMORTIZATION ALLOWANCE AND REPLACEMENT REQUIREMENTS. NUMEROUS ARTICLES. 
PROBABLE LIFE 10 YEARS. INTEREST 6 PER CENT. = 
, - TF - ——— TT = a 
be | + 
S814— : 
3 = 
g 13 . 
5 2 
5 12} — 
A 1} 
a) 
| 10 
: § 
| oF 
i 
8k 
a —— oie ae 1 
‘ No. L.—Replacement requirements. +i.uy . 1+ __owth. Hailures as shown in Fig. « 
No. 2~Replacement requirements, Plant made up ot uniform annual additions. } 
Failures as shown in Fig. 1 t= 
No. 3~Replacement requirements. Plant of full growth, Failures estimated by the - 
law of probabilities. = 
No. 4 =Replacement requirements. Plant made up of uniform annual additions. CL m 
Failures estimated by the law of probabilities. fa 
No. 5~Amortization allowance. By the Straight-Line Method. T— 
No. 6—Amortization allowance. By the Equal-Annual-Payment Method. All articles of 
) the same age and renewals assumed to be made at the end of the probable life term. : 
%, 'No. T—=Amortization allowance. By the Equal-Annual-Payment Method. Plant made ° : 
up of uniform annual additions. 
1 ES SS = =r = ; 
, Jv. Cr de— eh : So u; 
ve . 5 + 5 6 7.8 007 B13 14 151617 18 19 20 21 22 2 2 2 2% 5 8 HD = 
Years 
FIG. 2.
	        
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