Sinking fund depreciation method in economical engineering, Other Engineering

Sinking Fund Depreciation Method

Prior to World War II little attention was given to depreciation, and some business actually established savings accounts in which uniform annual deposits were placed so that at the end of the useful life an asset could be replaced.

Given the costs basis or the amount paid for an asset P, the salvage value at the end of the useful life F, the useful life n years, and the depreciation account paid annual compound interest of I, then the annual deposit to the depreciation account is

D = (P - F) (A|F,i%,n)

=PMT(i%, n, -()P-F)

The depreciation method based on Equation 9.1 is called the sinking fund factor. The actual depreciation for year dt is the sum of the annual deposit and the accumulated interest for year t.

dt = d(F| P,i%,t-1)

=FV(i%, t-1, -PMT(i%, nn -(P-F)))

The undepreciated portion of an asset is called the book value Bt, which based on the sinking fund depreciation is given by

Bt =P -d(F|A,i%,t)

= P -FV(i%, t, -PMT(i%, n, , -(P-F))

Posted Date: 3/15/2013 5:54:45 AM | Location : United States







Related Discussions:- Sinking fund depreciation method in economical engineering, Assignment Help, Ask Question on Sinking fund depreciation method in economical engineering, Get Answer, Expert's Help, Sinking fund depreciation method in economical engineering Discussions

Write discussion on Sinking fund depreciation method in economical engineering
Your posts are moderated
Related Questions
Expertsmind.com brings you unique solution in electrical engineering Define terms of Galaxy Clusters, Basic Astronomical Objects, Astronomical Distance Units, Terms

i need somone to design a pavilion for me

how to prepare assignment note on culverts in between 4 to 6 pages

Sharpe Knife Company expects sales next year to be $1,500,000 if the economy is strong, $800,000if the economy is steady, and $500,000if the economy willb e strong, a 50 percent pr

#question.what if i poured diesel in petrol engine and petrol in diesel engine.

Capital Rationing Capital Rationing refers to a situation where the firm is constrained for external, or self-imposed, reasons to obtain necessary funds to invest in all investmen

PROPELLER SHAFTS Most modern engines, both reciprocating and turbine, have flanged propeller shafts. Some of these flanges have integral internally threaded bushings that fit

Hi, I require a service which involves finite element modelling on commercial software package "ABAQUS". I am personally not sure how to model this on ABAQUS and thats why I have

Also called 1-bit DAC or sigma-delta DAC. It uses pulse-density modulation (PDM) which encodes the signal amplitude by the relative density of the pulses. The output voltage has on

what is the equation relating the real exchange rate to the nominal exchange rate and domestic and foreign price levels