Preserved Value Approach for Asset Valuation

DOI

10.2991/iscfec-18.2019.39How to use a DOI?

Keywords

Asset Valuation, Mutually Exclusive Alternatives, Preserved Value Approach.

Abstract

Paper describes the new approach to the valuation of partially exhausted economic asset. Approach is based on the economic equivalency of the cash flows generated by appraised asset and the same asset when it was new. Described approach involves the concept of time value of money and considers the exhausted asset as mutually exclusive alternative to the same asset when it was new. Unlike the well-known asset valuation approaches, the proposed pre-served value approach assumes the first cost of asset, cash flows in past and fu-ture, and includes the planned lifetime of asset. Paper introduce the methodology and guidelines for calculations in two options – for “Steady expectations method” and “Discontinuity method”. Proposed approach may be applied to the asset valuation if the asset first cost and planned life time are not defined, but the similar or alike asset may be selected.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - V. A. Lazarev
PY  - 2019/01
DA  - 2019/01
TI  - Preserved Value Approach for Asset Valuation
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)
PB  - Atlantis Press
SP  - 172
EP  - 175
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscfec-18.2019.39
DO  - 10.2991/iscfec-18.2019.39
ID  - Lazarev2019/01
ER  -