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Author: | Katerregga, K. |
Title: | Per-unit net salvage estimation |
Journal: | Engineering Economist
1996 : SUMMER, VOL. 41:4, p. 303-316 |
Index terms: | ECONOMICS PROCESS ENGINEERING ESTIMATION |
Language: | eng |
Abstract: | This paper provides a review and a critique of the historical approach to net salvage estimation under group accounting and a development of a theoretical framework underlying an estimation approach called the per-unit net salvage analysis. This approach is shown to be the preferable method of estimating future net salvage, especially for mass assets and accounts exhibiting increasing age-independent removal costs. Regulated public utilities are generally allowed to collect revenue from customers using a formula called the revenue requirement equation. |
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