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The term replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its current worth. [1] In the insurance industry, "replacement cost" or "replacement cost value" is one of several methods of determining the value of an insured item. Replacement cost is the ...
In the property and casualty insurance industry, actual cash value (ACV) is a method of valuing insured property, or the value computed by that method. Actual cash value (ACV) is not equal to replacement cost value (RCV). Actual cash value is computed by subtracting depreciation from replacement cost. [1]
If she were to destroy, remove or damage it without a permit she would face penalties including a tree replacement fee that is double the value of the removed tree, an administrative enforcement ...
Estimating the cost savings required to justify the purchase of new equipment. [13] Determining the cost of continuing with existing equipment. [14] Where an asset undergoes a major overhaul, and the cost is not fully reflected in salvage values, to calculate the optimum life (i.e., lowest EAC) of holding on to the asset. [15]
Stumpage value method. A simplified net present value method where the value of the stock is obtained by multiplying the current volume of standing timber by its stumpage price, assuming the rate of discount is equal to the natural growth rate. S = A * p * Q. Value of standing timber = Area * price per m 3 * Quantity of timber. Consumption ...
My 2017 Chrysler was totaled after a tree fell on it during a tornado. My insurer paid me $9,300 in actual cash value — but I still owe $12K on my auto loan.
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