Hi,
Would anybody confirm the following pls? and explain who to compute Economic obsolescence ?:
Cost approach valuation:
Value Asset = 1) Value of Land + 2) Replacement Cost - 3) Economic Depreciation
where
3) Economic Depreciation = a) Replacement Cost - b)Currable Costs - c) Incurrable costs - d) Economic obsolescence
and where
c) = (Replacement Cost - Curable costs) x (Effective age/ Total Age)
d) = ?
Thanks
Alex
Would anybody confirm the following pls? and explain who to compute Economic obsolescence ?:
Cost approach valuation:
Value Asset = 1) Value of Land + 2) Replacement Cost - 3) Economic Depreciation
where
3) Economic Depreciation = a) Replacement Cost - b)Currable Costs - c) Incurrable costs - d) Economic obsolescence
and where
c) = (Replacement Cost - Curable costs) x (Effective age/ Total Age)
d) = ?
Thanks
Alex