COST ESTIMATION OF NEW CARS AND EQUIPMENT UNDER CONDITIONS OF UNCERTAINTY
15.04.2024
International Scientific Journal "Science and Innovation". Series A. Volume 3 Issue 4
Samatov A.S., Rahimovа G. R.
Abstract. Methods used in the valuation of assets are usually referred to either a market, or income, or cost approach. Meanwhile, correct valuation methods can be obtained by applying several approaches together. One of these methods is based on the formula proposed by D.S. Lvov at one time, which links the market values of the assessed machine and its analogue and takes into account differences in the operating characteristics of machines and their useful lives. However, when deriving the formula, it is assumed that the characteristics of the machine do not change during the useful life. We propose a generalization of this formula for a situation where the operating characteristics of machines change during their operation, and the useful life is random
Keywords: machinery, equipment, valuation, benefits, useful life, probability distribution, market value, cash flow discounting
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