• QuaternionsRock@lemmy.world
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      7 months ago

      Right, is this not the same thing as cost minus depreciation?

      Again, I don’t know the first thing about this subject, so I’m trying to relate it to, like, home insurance. If your roof starts leaking all over, they don’t give you the full amount required to replace it, since shingles need to be replaced every couple decades. They give you the amount minus a linear multiplier of how long it’s been since they were last replaced.

      • deegeese@sopuli.xyz
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        7 months ago

        Present value is more like replacement cost minus depreciation but ask an insurance adjuster.