A building has 12 foot ceilings that cause the electric bill to be $1,200 higher per year. Depreciation caused by the ceilings can be estimated by calculating the present value of the $1,200 per year over the remaining economic life of building.

Question

Quizplus · Accepted Answer

Depreciation can be estimated by calculating the present value of future costs, such as higher electric bills, over the building's economic life.

A Building Has 12 Foot Ceilings That Cause the Electric