CONTENTS
Valuation – Explanation of terms
Types of values
Sinking fund
Years purchase
Depreciation
Straight line method
Constant percentage method
S. F. method
2
, Obsolescence
3
, CONTENTS
Valuation of real properties
Rental method
Profit based method
Depreciation method
Valuation of landed properties
Belting method
Development method
Hypothecated building scheme method
Rent calculation
Lease and lease hold property
4
, Cost: It means original cost of construction of
purchase.
Price:
•Amount worked out adding the cost of production,
interest on investment, reward to the producer for his
labour and risk.
•Selling price is fixed for a commodity
•For less demand the selling price may have to be fixed
lower and vice versa.
5
Valuation – Explanation of terms
Types of values
Sinking fund
Years purchase
Depreciation
Straight line method
Constant percentage method
S. F. method
2
, Obsolescence
3
, CONTENTS
Valuation of real properties
Rental method
Profit based method
Depreciation method
Valuation of landed properties
Belting method
Development method
Hypothecated building scheme method
Rent calculation
Lease and lease hold property
4
, Cost: It means original cost of construction of
purchase.
Price:
•Amount worked out adding the cost of production,
interest on investment, reward to the producer for his
labour and risk.
•Selling price is fixed for a commodity
•For less demand the selling price may have to be fixed
lower and vice versa.
5
