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Depreciation Rate of Machine Tool Formula

GoDepreciation Rate of Machine Tool given Machining and Operating Rate Formula

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Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine. Check FAQs

M t = \frac{C mach}{N wh \cdot P amort}

M_t - Depreciation Rate?C_mach - Initial Cost of The Machine?N_wh - Number of Working Hours Per Year?P_amort - Amortization Period?

Depreciation Rate of Machine Tool Example

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Here is how the Depreciation Rate of Machine Tool equation looks like with Values.

Here is how the Depreciation Rate of Machine Tool equation looks like with Units.

Here is how the Depreciation Rate of Machine Tool equation looks like.

0.1 = \frac{1000}{1200 \cdot 0.1389}

0.1 = \frac{1000}{1200 \cdot 0.1389min}

0.1 = \frac{1000}{1200 \cdot 0.1389}

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Depreciation Rate of Machine Tool Solution

Follow our step by step solution on how to calculate Depreciation Rate of Machine Tool?

FIRST Step Consider the formula

M t = \frac{C mach}{N wh \cdot P amort}

Next Step Substitute values of Variables

∴

M t = \frac{1000}{1200 \cdot 0.1389min}

Next Step Convert Units

∴

M t = \frac{1000}{1200 \cdot 8.3333s}

Next Step Prepare to Evaluate

∴

M t = \frac{1000}{1200 \cdot 8.3333}

Next Step Evaluate

∴

M t = 0.099999920000064

LAST Step Rounding Answer

∴

M t = 0.1

Depreciation Rate of Machine Tool Formula Elements

Variables

Depreciation Rate

Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.

Symbol: M_t

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Depreciation Rate

Initial Cost of The Machine

Initial Cost of The Machine is the total cost after ordering, buying, acquiring, and installment a machine.

Symbol: C_mach

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Cost of The Machine

Number of Working Hours Per Year

Number of Working Hours Per Year is the total number of hours a machine has been used for production processes.

Symbol: N_wh

Measurement: NAUnit: Unitless

Note: Value should be less than 8760.

Formulas to find Number of Working Hours Per Year

Amortization Period

Amortization Period is the useful time over which the intangible cost of a machine has been spread.

Symbol: P_amort

Measurement: TimeUnit: min

Note: Value should be greater than 0.

Formulas to find Amortization Period

Other Formulas to find Depreciation Rate

Go Depreciation Rate of Machine Tool given Machining and Operating Rate

M t = (M - (W o \cdot \frac{100 + % opt}{100})) \cdot \frac{100}{100 + % mach}

Other formulas in Depreciation Rate category

Go Working Hours per year given Depreciation Rate

N wh = \frac{C mach}{P amort \cdot M t}

Go Amortization given Depreciation Rate

P amort = \frac{C mach}{N wh \cdot M t}

How to Evaluate Depreciation Rate of Machine Tool?

Depreciation Rate of Machine Tool evaluator uses Depreciation Rate = Initial Cost of The Machine/(Number of Working Hours Per Year*Amortization Period) to evaluate the Depreciation Rate, The Depreciation Rate of Machine Tool is the actual decrease of the fair value of a machine over time due to its usage and wears for the time it was used for production. Depreciation Rate is denoted by M_t symbol.

How to evaluate Depreciation Rate of Machine Tool using this online evaluator? To use this online evaluator for Depreciation Rate of Machine Tool, enter Initial Cost of The Machine (C_mach), Number of Working Hours Per Year (N_wh) & Amortization Period (P_amort) and hit the calculate button.

FAQs on Depreciation Rate of Machine Tool

What is the formula to find Depreciation Rate of Machine Tool?

The formula of Depreciation Rate of Machine Tool is expressed as Depreciation Rate = Initial Cost of The Machine/(Number of Working Hours Per Year*Amortization Period). Here is an example- 0.001667 = 1000/(1200*8.33334).

How to calculate Depreciation Rate of Machine Tool?

With Initial Cost of The Machine (C_mach), Number of Working Hours Per Year (N_wh) & Amortization Period (P_amort) we can find Depreciation Rate of Machine Tool using the formula - Depreciation Rate = Initial Cost of The Machine/(Number of Working Hours Per Year*Amortization Period).

What are the other ways to Calculate Depreciation Rate?

Here are the different ways to Calculate Depreciation Rate-

Depreciation Rate=(Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)

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Depreciation Rate of Machine Tool Formula

​GoDepreciation Rate of Machine Tool given Machining and Operating Rate Formula

Depreciation Rate of Machine Tool Example

Depreciation Rate of Machine Tool Solution

Depreciation Rate of Machine Tool Formula Elements

Other Formulas to find Depreciation Rate

Other formulas in Depreciation Rate category

How to Evaluate Depreciation Rate of Machine Tool?

FAQs on Depreciation Rate of Machine Tool

Variable Name

GoDepreciation Rate of Machine Tool given Machining and Operating Rate Formula