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DASV.HLP
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1990-12-17
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SALVAGE VALUE (Building & Land)
This section computes the future residual value of a
building or group of buildings on a given site at any given
point in the useful life of the building or group of
buildings. The building (or group of buildings) is subject
to decay and obsolescence tempered by the inflation rate,
while the land appreciates at the inflation rate. The decay
factor is 0.83. To develop a constant dollar salvage value
enter 0 when asked for inflation rate. To use this section
for capital items other than buildings and land you will have
to accept a decay factor 0.83, and enter 0 under land value
while entering the capital item value under building value.
Data needed at hand is: Useful life of the building (years),
Term to salvage value (years), Initial land value, Initial
building value, Inflation rate.