Enter the value and click Calculate. The result will be displayed.
Depreciation rate / year = (machine cost - residual value) / year
Input data:
Machine cost: 20000
Residual value: 200
Year: 3
Click "Calculate" to output data
Depreciation rate / year: 6600.00
The value loss of the machine in this method is proportional to the age of the machine. Therefore, the scrap value should be deducted from the original value of the machine, divided by the useful life.
This method is also known as the fixed installation method because the same amount is deducted each year. Maintenance costs are not considered in this method.
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