How to calculate the cost of equipment?

[ericheartsu]

Im working through some exercises, and I was wondering in our industry, how can I calculate the current value of our equipment?

I have some pieces that are less than 3 years old, and are maintained weekly.
I have other pieces that are 20+ years old, and still kicking as we maintain those as well.

Is there some magic formula I can use, to figure out current value or worth?

[Shanarchy]

I'm curious to see the responses.

I always figured for a general rule of thumb:
3 years or newer: 75%
older than 3 years: 50%

Is this to establish resale values, or business value purposes?

[LuckyFlyinROUSH]

Only worth what someone would buy them for. Digit smith sold items, or ebay sold items.

^^ might be a good guesstimate though.

[zanegun08]

If it is from M&R they will give you a Fair Market Value if you get them a serial number.  I sometimes think this number is a little high, but like Lucky said, it's only worth what someone will pay for it.

[numbercruncher]

Have heard many ideas for equipment with 10 year or so life expectancy :
-check the trade classifieds and see what they are listing like equipment for
-1 year old, deduct 25% -- 2 year old, deduct an additional 10%-- for every year after deduct an additional  5%.

 If this is obvious please excuse me - but if being done for business/legal reasons-  always like to get professional advice.

[blue moon]

Have heard many ideas for equipment with 10 year or so life expectancy :
-check the trade classifieds and see what they are listing like equipment for
-1 year old, deduct 25% -- 2 year old, deduct an additional 10%-- for every year after deduct an additional  5%.

 If this is obvious please excuse me - but if being done for business/legal reasons-  always like to get professional advice.

If I had to put a formula together, this is probably what I would do. As mentioned though, digitsmith or asking here is probably the best bet.

pierre

[ericheartsu]

thanks everyone!

[ZooCity]

I do:

• Street value (what I personally could sell the equip for)
• New replacement value (for insurance.  you won't have time to hunt down deals if you have a catastrophic event)
• Depreciated value (for bookkeeping/taxes, most equip for our trade is going to be on a 10yr macrs sched)
• Bank value (if required and you are lending and need to collateralize. banks see things ah, a little differently when it comes to value of equip so let them determine those figures)

Keep all that in a spreadsheet with asset pics for insurance and you can grab what ya need when ya need it.

[ericheartsu]

next question, what constitutes for high or low impressions?

[DannyGruninger]

I'd say high impression count is 3 mil plus on a machine but everyone might think differently