Asset Value after 'a' Years Calculator

✖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.ⓘ Original Value of Assets at Start of Service [V]			+10% -10%
✖Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life.ⓘ Salvage Value of Asset at End of Service [V_s]			+10% -10%
✖Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.ⓘ Annual Interest Rate [i]			+10% -10%
✖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.ⓘ Number of Years in Actual Use [a]			+10% -10%
✖Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.ⓘ Service Life [n]			+10% -10%

✖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.ⓘ Asset Value after 'a' Years [V_a]

⎘ Copy

👎

Formula

✖

Asset Value after 'a' Years

Formula

`"V"_{"a"} = "V"-("V"-"V"_{"s"})*(((1+"i")^("a")-1)/((1+"i")^("n")-1))`

Example

`"49999.95"="50000"-("50000"-"5000")*(((1+"6")^("3")-1)/((1+"6")^("10")-1))`

Calculator

LaTeX

Reset

👍

Download Chemical Engineering Formula PDF PDF Image

Asset Value after 'a' Years Solution

STEP 0: Pre-Calculation Summary

Formula Used

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))
V_a = V-(V-V_s)*(((1+i)^(a)-1)/((1+i)^(n)-1))
This formula uses 6 Variables

Variables Used

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.
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.
Salvage Value of Asset at End of Service - Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life.
Annual Interest Rate - Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.
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.
Service Life - Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.

STEP 1: Convert Input(s) to Base Unit

Original Value of Assets at Start of Service: 50000 --> No Conversion Required
Salvage Value of Asset at End of Service: 5000 --> No Conversion Required
Annual Interest Rate: 6 --> No Conversion Required
Number of Years in Actual Use: 3 --> No Conversion Required
Service Life: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

V_a = V-(V-V_s)*(((1+i)^(a)-1)/((1+i)^(n)-1)) --> 50000-(50000-5000)*(((1+6)^(3)-1)/((1+6)^(10)-1))

Evaluating ... ...

V_a = 49999.9455173503

STEP 3: Convert Result to Output's Unit

49999.9455173503 --> No Conversion Required

FINAL ANSWER

49999.9455173503 ≈ 49999.95 <-- Asset Value

(Calculation completed in 00.004 seconds)

You are here -

Home » Engineering » Chemical Engineering » Plant Design and Economics » Depreciation » Asset Value after 'a' Years

Credits

Created by Heet

Thadomal Shahani Engineering College (Tsec), Mumbai

Heet has created this Calculator and 200+ more calculators!

Verified by Vaibhav Mishra

DJ Sanghvi College of Engineering (DJSCE), Mumbai

Vaibhav Mishra has verified this Calculator and 200+ more calculators!

< 8 Depreciation Calculators

Asset Value after 'a' Years

Go 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))

Replacement Value by Sinking Fund Method

Go Replacement Value = (Original Value of Assets at Start of Service-Asset Value)/((((1+Annual Interest Rate)^(Number of Years in Actual Use)-1)/((1+Annual Interest Rate)^(Service Life)-1)))

Depreciation by Sum of Year Digit Method

Go Depreciation = (2*(Service Life-Number of Years in Actual Use+1))/(Service Life*(Service Life+1))*(Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)

Fixed Percentage Factor using Matheson Formula

Go Fixed Percentage Factor = 1-(Salvage Value of Asset at End of Service/Original Value of Assets at Start of Service)^(1/Service Life)

Annual Depreciation by Straight-Line Method

Go Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life

Book Value of Process Equipment at any Time during Service Life

Go Asset Value = Original Value of Assets at Start of Service-Number of Years in Actual Use*Annual Depreciation per Year

Asset Value using Declining Balance Method

Go Asset Value = Original Value of Assets at Start of Service*(1-Fixed Percentage Factor)^Number of Years in Actual Use

Depletion Cost

Go Depletion Cost = Initial Cost*(Amount of Material Used/Original Amount of Material Purchased)

Asset Value after 'a' Years Formula

What is Asset?

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits. Assets can take various forms, including physical items such as real estate, machinery, and inventory, as well as intangible items like patents, trademarks, or goodwill. Assets are typically classified on a balance sheet as current assets or non-current assets, depending on their liquidity and the time frame within which they are expected to generate economic benefits. Assets play a fundamental role in financial accounting, investment analysis, and overall wealth creation.

What is Depreciation?

Depreciation is an accounting method used to allocate the cost of a tangible asset over its estimated useful life. It represents the reduction in the value of the asset over time, reflecting factors such as wear and tear, obsolescence, or the passage of time. The purpose of depreciation is to match the expense of using an asset with the revenue it generates, providing a more accurate representation of an asset's true economic cost throughout its operational life. Depreciation is crucial for financial reporting, tax purposes, and overall asset management. Common methods of calculating depreciation include straight-line depreciation, declining balance, and sum-of-the-years-digits.

How to Calculate Asset Value after 'a' Years?

Asset Value after 'a' Years calculator uses 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)) to calculate the Asset Value, Asset Value after 'a' Years calculates the estimated monetary worth of a tangible asset at the end of a specific period, denoted by 'a' years, within its useful life. Asset Value is denoted by V_a symbol.

How to calculate Asset Value after 'a' Years using this online calculator? To use this online calculator for Asset Value after 'a' Years, enter Original Value of Assets at Start of Service (V), Salvage Value of Asset at End of Service (V_s), Annual Interest Rate (i), Number of Years in Actual Use (a) & Service Life (n) and hit the calculate button. Here is how the Asset Value after 'a' Years calculation can be explained with given input values -> 49999.95 = 50000-(50000-5000)*(((1+6)^(3)-1)/((1+6)^(10)-1)).

FAQ

What is Asset Value after 'a' Years?

Asset Value after 'a' Years calculates the estimated monetary worth of a tangible asset at the end of a specific period, denoted by 'a' years, within its useful life and is represented as V_a = V-(V-V_s)*(((1+i)^(a)-1)/((1+i)^(n)-1)) or 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)). 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, Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life, Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis, 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 & Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.

How to calculate Asset Value after 'a' Years?

Asset Value after 'a' Years calculates the estimated monetary worth of a tangible asset at the end of a specific period, denoted by 'a' years, within its useful life is calculated using 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)). To calculate Asset Value after 'a' Years, you need Original Value of Assets at Start of Service (V), Salvage Value of Asset at End of Service (V_s), Annual Interest Rate (i), Number of Years in Actual Use (a) & Service Life (n). With our tool, you need to enter the respective value for Original Value of Assets at Start of Service, Salvage Value of Asset at End of Service, Annual Interest Rate, Number of Years in Actual Use & Service Life and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Asset Value?

In this formula, Asset Value uses Original Value of Assets at Start of Service, Salvage Value of Asset at End of Service, Annual Interest Rate, Number of Years in Actual Use & Service Life. We can use 2 other way(s) to calculate the same, which is/are as follows -

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*(1-Fixed Percentage Factor)^Number of Years in Actual Use

Home

FREE PDFs

🔍 Search