The Value and Depreciation of Existing Facilities: The Case of Reservoirs

Abstract

The value of an asset is determined by the net economic value of its production over time. This value is summarized by the net present value of all present and future production. Change in asset value, either depreciation or appreciation, results from both changes in the economic value of each unit of production and the asset's physical productivity. A theory of depreciation expressing this approach is derived from first principles of engineering economics. The theory is illustrated for the case of water resource reservoirs. Keywords: Water supplies storage/planning; Engineering economics; Cost models.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1989
Accession Number
ADA217658

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  • Jay R. Lund

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  • Human Systems

DTIC Thesaurus Topics

  • Army Corps Of Engineers
  • Classification
  • Construction
  • Economic Analysis
  • Economics
  • Engineering
  • Engineers
  • Flood Control
  • Productivity
  • Recreation
  • Reservoirs
  • Security
  • Standards
  • United States
  • Water
  • Water Resources
  • Water Supplies

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  • Industrial Economics
  • Theoretical Analysis.