FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Asset Value using Declining Balance Method Formula

GoBook Value of Process Equipment at any Time during Service Life Formula

GoAsset Value after 'a' Years Formula

Fx Copy

LaTeX Copy

Asset Value at the end of 'a' year refers to the estimated monetary worth or value of a tangible asset at the conclusion of a specific period, 'a' year, within its useful life. Check FAQs

V a = V \cdot {(1 - f)}^{a}

V_a - Asset Value?V - Original Value of Assets at Start of Service?f - Fixed Percentage Factor?a - Number of Years in Actual Use?

Asset Value using Declining Balance Method Example

With values

With units

Only example

Here is how the Asset Value using Declining Balance Method equation looks like with Values.

Here is how the Asset Value using Declining Balance Method equation looks like with Units.

Here is how the Asset Value using Declining Balance Method equation looks like.

14950.7842 = 50000 \cdot {(1 - 0.3313)}^{3}

14950.7842 = 50000 \cdot {(1 - 0.3313)}^{3}

14950.7842 = 50000 \cdot {(1 - 0.3313)}^{3}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Engineering » Category

Chemical Engineering » Category

Plant Design and Economics » fx Asset Value using Declining Balance Method

Asset Value using Declining Balance Method Solution

Follow our step by step solution on how to calculate Asset Value using Declining Balance Method?

FIRST Step Consider the formula

V a = V \cdot {(1 - f)}^{a}

Next Step Substitute values of Variables

∴

V a = 50000 \cdot {(1 - 0.3313)}^{3}

Next Step Prepare to Evaluate

∴

V a = 50000 \cdot {(1 - 0.3313)}^{3}

Next Step Evaluate

∴

V a = 14950.78423515

LAST Step Rounding Answer

∴

V a = 14950.7842

Asset Value using Declining Balance Method Formula Elements

Variables

Asset Value

Asset Value at the end of 'a' year refers to the estimated monetary worth or value of a tangible asset at the conclusion of a specific period, 'a' year, within its useful life.

Symbol: V_a

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Asset Value

Original Value of Assets at Start of Service

Original Value of Assets at Start of Service Life Period refers to the initial cost or acquisition cost of a tangible asset when it is first put into service.

Symbol: V

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Original Value of Assets at Start of Service

Fixed Percentage Factor

Fixed Percentage Factor is a constant rate used in certain depreciation methods, such as the Matheson formula, to determine the annual depreciation expense for a tangible asset.

Symbol: f

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Fixed Percentage Factor

Number of Years in Actual Use

Number of Years in Actual Use refers to the period of time during which a particular asset has been actively employed or utilized for its intended purpose in a business or operational context.

Symbol: a

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Years in Actual Use

Other Formulas to find Asset Value

Go Book Value of Process Equipment at any Time during Service Life

V a = V - a \cdot d

Go Asset Value after 'a' Years

V a = V - (V - V s) \cdot (\frac{{(1 + i)}^{a} - 1}{{(1 + i)}^{n} - 1})

Other formulas in Depreciation category

Go Depletion Cost

D = I \cdot (\frac{U}{P})

Go Annual Depreciation by Straight-Line Method

d = \frac{V - V s}{n}

Go Fixed Percentage Factor using Matheson Formula

f = 1 - {(\frac{V s}{V})}^{\frac{1}{n}}

Go Depreciation by Sum of Year Digit Method

d a = \frac{2 \cdot (n - a + 1)}{n \cdot (n + 1)} \cdot (V - V s)

How to Evaluate Asset Value using Declining Balance Method?

Asset Value using Declining Balance Method evaluator uses Asset Value = Original Value of Assets at Start of Service*(1-Fixed Percentage Factor)^Number of Years in Actual Use to evaluate the Asset Value, Asset Value using Declining Balance Method refers to the remaining book value of a tangible asset at a specific point in time. Asset Value is denoted by V_a symbol.

How to evaluate Asset Value using Declining Balance Method using this online evaluator? To use this online evaluator for Asset Value using Declining Balance Method, enter Original Value of Assets at Start of Service (V), Fixed Percentage Factor (f) & Number of Years in Actual Use (a) and hit the calculate button.

FAQs on Asset Value using Declining Balance Method

What is the formula to find Asset Value using Declining Balance Method?

The formula of Asset Value using Declining Balance Method is expressed as Asset Value = Original Value of Assets at Start of Service*(1-Fixed Percentage Factor)^Number of Years in Actual Use. Here is an example- 14950.78 = 50000*(1-0.3313)^3.

How to calculate Asset Value using Declining Balance Method?

With Original Value of Assets at Start of Service (V), Fixed Percentage Factor (f) & Number of Years in Actual Use (a) we can find Asset Value using Declining Balance Method using the formula - Asset Value = Original Value of Assets at Start of Service*(1-Fixed Percentage Factor)^Number of Years in Actual Use.

What are the other ways to Calculate Asset Value?

Here are the different ways to Calculate Asset Value-

Asset Value=Original Value of Assets at Start of Service-Number of Years in Actual Use*Annual Depreciation per Year
Asset Value=Original Value of Assets at Start of Service-(Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)*(((1+Annual Interest Rate)^(Number of Years in Actual Use)-1)/((1+Annual Interest Rate)^(Service Life)-1))

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Asset Value using Declining Balance Method Formula

​GoBook Value of Process Equipment at any Time during Service Life Formula

​GoAsset Value after 'a' Years Formula

Asset Value using Declining Balance Method Example

Asset Value using Declining Balance Method Solution

Asset Value using Declining Balance Method Formula Elements

Other Formulas to find Asset Value

Other formulas in Depreciation category

How to Evaluate Asset Value using Declining Balance Method?

FAQs on Asset Value using Declining Balance Method

Variable Name

GoBook Value of Process Equipment at any Time during Service Life Formula

GoAsset Value after 'a' Years Formula