REPLACEMENT COST USING COMPARISON

 

RESULT SUMMARY:
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VALUATION BY REPLACEMENT COST USING COMPARISON METHOD
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Cost of New Machinery: 1000000

Balance Useful Economic Life of Present Machinery in Years: 17

Saving in Cost due to Direct Wages per Annum: 2000

Saving in Cost due to Consumption of Stores per Annum: 0.0

Saving in Cost due to Space per Annum: 3000

Saving in Cost due to Consumption of Energy per Annum: 11400

Saving in Cost due to Fix Cost per Annum: 0.0

Saving in Cost due to Down Time per Annum: 1000

Saving in Cost due to Better Quality of Products per Annum: 0.0

Saving in Cost due to Less Possible Rejections per Annum: 2000

Saving in Cost due to Lower Maintenance per Annum: 4000

Discount Rate in %: 9

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Total Amount of Savings per Annum: 23400

Present values of Savings: 199920.97

Replacement Cost: 800079.03