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Lady bird [3.3K]
3 years ago
6

The factors that need to be determined to compute depreciation are an asset's: a.Cost, residual value, and physical life. b.Cost

, replacement value, and service life. c.Fair value, residual value, and economic life. d.Cost, residual value, and service life.
Business
1 answer:
kumpel [21]3 years ago
4 0

Answer:

d.Cost, residual value, and service life

Explanation:

The depreciation of an asset is the systematic allocation of cost for the use of the asset over its useful life.

Depreciation is usually computed using the formula below

Depreciation  =  (cost - salvage value)/useful life

The difference between the cost and salvage value is the depreciation base of the asset over its entire useful life.

As such, the right option is d.Cost, residual value, and service life

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Answer:

Explanation:

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<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.  </em>

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<em>This model is considered superior to DVM. Hence, we will use the CAPM</em>

Using the CAPM , the expected return on a asset is given as follows:

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