×
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS

Are you an
Engineering professional?
Join Eng-Tips Forums!
• Talk With Other Members
• Be Notified Of Responses
• Keyword Search
Favorite Forums
• Automated Signatures
• Best Of All, It's Free!

*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail.

Posting Guidelines

Promoting, selling, recruiting, coursework and thesis posting is forbidden.

Depreciation, Salvage value, etc.

Depreciation, Salvage value, etc.

(OP)
Hello all,
I understand that depreciation is the (rate of) reduction in value of an equipment from the moment it was purchased and put in service, and salve value is the actual worth of the equipment after n years of use during it's useful life. What is a typical range of the depreciation rate (r) of equipment (I'm thinking a reciprocating compressor used in natural gas service), will 15 to 25% be a good range. And does the equation from salvage value S = (1-r)^n a good equation to figure estimated salvage value?

Thanks a lot.
As much as possible, do it right the first time...

As much as possible, do it right the first time...

RE: Depreciation, Salvage value, etc.

http://cs.thomsonreuters.com/ua/fixa/cs_us_en/ass_...,
https://www.assetworks.com/useful-life-and-depreci...

which is what the taxes are based on.

From a purely engineering economics perspective, useful life is often defined as the point where cumulative repair costs exceed one half of the replacement cost.

TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm

RE: Depreciation, Salvage value, etc.

Don't forget recapture . If you have written the asset off. When you salvage it, you have to give some of that money back.
B.E.

You are judged not by what you know, but by what you can do.

Red Flag This Post

Please let us know here why this post is inappropriate. Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework.

Red Flag Submitted

Thank you for helping keep Eng-Tips Forums free from inappropriate posts.
The Eng-Tips staff will check this out and take appropriate action.

Resources

Low-Volume Rapid Injection Molding With 3D Printed Molds
Learn methods and guidelines for using stereolithography (SLA) 3D printed molds in the injection molding process to lower costs and lead time. Discover how this hybrid manufacturing process enables on-demand mold fabrication to quickly produce small batches of thermoplastic parts. Download Now
Examine how the principles of DfAM upend many of the long-standing rules around manufacturability - allowing engineers and designers to place a partâ€™s function at the center of their design considerations. Download Now
Taking Control of Engineering Documents
This ebook covers tips for creating and managing workflows, security best practices and protection of intellectual property, Cloud vs. on-premise software solutions, CAD file management, compliance, and more. Download Now

Close Box

Join Eng-Tips® Today!

Join your peers on the Internet's largest technical engineering professional community.
It's easy to join and it's free.

Here's Why Members Love Eng-Tips Forums:

• Talk To Other Members
• Notification Of Responses To Questions
• Favorite Forums One Click Access
• Keyword Search Of All Posts, And More...

Register now while it's still free!