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Hourly Depreciation Formula

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Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis. Check FAQs

D h = 0.9 \cdot \frac{C bv}{L s}

D_h - Hourly Depreciation?C_bv - Book Value?L_s - Life Span?

Hourly Depreciation Example

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Here is how the Hourly Depreciation equation looks like with Values.

Here is how the Hourly Depreciation equation looks like with Units.

Here is how the Hourly Depreciation equation looks like.

20.0001 = 0.9 \cdot \frac{4000.01}{180}

20.0001 = 0.9 \cdot \frac{4000.01}{180h}

20.0001 = 0.9 \cdot \frac{4000.01}{180}

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Hourly Depreciation Solution

Follow our step by step solution on how to calculate Hourly Depreciation?

FIRST Step Consider the formula

D h = 0.9 \cdot \frac{C bv}{L s}

Next Step Substitute values of Variables

∴

D h = 0.9 \cdot \frac{4000.01}{180h}

Next Step Prepare to Evaluate

∴

D h = 0.9 \cdot \frac{4000.01}{180}

Next Step Evaluate

∴

D h = 20.00005

LAST Step Rounding Answer

∴

D h = 20.0001

Hourly Depreciation Formula Elements

Variables

Hourly Depreciation

Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.

Symbol: D_h

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Hourly Depreciation

Book Value

Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.

Symbol: C_bv

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Book Value

Life Span

Life Span (in Hours) refers to the usage period or total life of a machine.

Symbol: L_s

Measurement: TimeUnit: h

Note: Value should be greater than 0.

Formulas to find Life Span

Other formulas in Management of Construction Equipment category

Go Life Span of Machine

L s = 0.9 \cdot \frac{C bv}{D h}

Go Book Value for New Machine

C bv = \frac{D h \cdot L s}{0.9}

Go Average Investment when Salvage value is 0

I a = (\frac{1 + n}{2 \cdot n}) \cdot P Capital

Go Capital Cost when Salvage Value is 0

P Capital = \frac{2 \cdot n \cdot I a}{1 + n}

How to Evaluate Hourly Depreciation?

Hourly Depreciation evaluator uses Hourly Depreciation = 0.9*Book Value/Life Span to evaluate the Hourly Depreciation, The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis. Hourly Depreciation is denoted by D_h symbol.

How to evaluate Hourly Depreciation using this online evaluator? To use this online evaluator for Hourly Depreciation, enter Book Value (C_bv) & Life Span (L_s) and hit the calculate button.

FAQs on Hourly Depreciation

What is the formula to find Hourly Depreciation?

The formula of Hourly Depreciation is expressed as Hourly Depreciation = 0.9*Book Value/Life Span. Here is an example- 20.00005 = 0.9*4000.01/648000.

How to calculate Hourly Depreciation?

With Book Value (C_bv) & Life Span (L_s) we can find Hourly Depreciation using the formula - Hourly Depreciation = 0.9*Book Value/Life Span.

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Hourly Depreciation Formula

Hourly Depreciation Example

Hourly Depreciation Solution

Hourly Depreciation Formula Elements

Other formulas in Management of Construction Equipment category

How to Evaluate Hourly Depreciation?

FAQs on Hourly Depreciation

Variable Name