Percentage Rate of Annual Depreciation Calculator

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Valuation Engineering Basic Formulas in Construction Planning and Management Construction Management Project Evaluation and Review Technique

✖Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.ⓘ Scrap Value [S_c]			+10% -10%
✖Original Cost is the total cost associated with the purchase of an asset.ⓘ Original Cost [OC]			+10% -10%

✖Percentage Rate of Annual Depreciation is used in constant percentage method which relates the scrap value, original cost and life of property.ⓘ Percentage Rate of Annual Depreciation [P]

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Percentage Rate of Annual Depreciation Solution

STEP 0: Pre-Calculation Summary

Formula Used

Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)
P = 1-(S_c/OC)
This formula uses 3 Variables

Variables Used

Percentage Rate of Annual Depreciation - Percentage Rate of Annual Depreciation is used in constant percentage method which relates the scrap value, original cost and life of property.
Scrap Value - Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.
Original Cost - Original Cost is the total cost associated with the purchase of an asset.

STEP 1: Convert Input(s) to Base Unit

Scrap Value: 350 --> No Conversion Required
Original Cost: 3500 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

P = 1-(S_c/OC) --> 1-(350/3500)

Evaluating ... ...

P = 0.9

STEP 3: Convert Result to Output's Unit

0.9 --> No Conversion Required

FINAL ANSWER

0.9 <-- Percentage Rate of Annual Depreciation

(Calculation completed in 00.004 seconds)

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NSS College of Engineering (NSSCE), Palakkad

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Percentage Rate of Annual Depreciation Formula

LaTeX Go

Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)
P = 1-(S_c/OC)

What is Scrap Value?

Scrap value is the market price that can be obtained for the individual components of an asset. This value is derived when the owner of an asset is deciding whether to incur costs to maintain it or to stop maintaining it, tear it down, and sell the parts. The scrap value of an item can vary substantially over time, based on the supply of and demand for it.

How to Calculate Percentage Rate of Annual Depreciation?

Percentage Rate of Annual Depreciation calculator uses Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost) to calculate the Percentage Rate of Annual Depreciation, The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used. Percentage Rate of Annual Depreciation is denoted by P symbol.

How to calculate Percentage Rate of Annual Depreciation using this online calculator? To use this online calculator for Percentage Rate of Annual Depreciation, enter Scrap Value (S_c) & Original Cost (OC) and hit the calculate button. Here is how the Percentage Rate of Annual Depreciation calculation can be explained with given input values -> 0.9 = 1-(350/3500).

FAQ

What is Percentage Rate of Annual Depreciation?

The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used and is represented as P = 1-(S_c/OC) or Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost). Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable & Original Cost is the total cost associated with the purchase of an asset.

How to calculate Percentage Rate of Annual Depreciation?

The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used is calculated using Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost). To calculate Percentage Rate of Annual Depreciation, you need Scrap Value (S_c) & Original Cost (OC). With our tool, you need to enter the respective value for Scrap Value & Original Cost and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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