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CHAPTER 43
1950 Guide
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Owning and Operating Costs
899
less may be proper, whereas for larger installations in buildings that are owned outright, a period of 10 or 20 years or more may be used.
Depreciation due to deterioration and obsolescence must also be con sidered in arriving at the amortization period. Deterioration and mainte nance generally go hand in hand. If a long depreciation period is to be
Table 5. Approximate Lies of Equipment (Including Obsolescence and Deterioration)*
1. Heat Producing Equipment 2. Heat Distributing Equipment 3. Air Handling Equipment
4. Air Distributing Equipment
Lifb in Years
15 . 10
20 10 12 10 5
8 10 10 10 10 15
8 10
8
20 20 10
5. Refrigerating Equipment
6. Water Saving Devices US WpIU "
15 10
20 15 15
10 10 Varies Widely
* Modern Air Conditioning, Heating and Ventilating, W. H. Carrier, R. E. Charne and W. A. Grant (Pit* man Publishing Carp. 1940, p. 66).
used, then the item for maintenance, repair and replacement of wearing parts must be greater than for a short depreciation period.
Obsolescence depends mainly on time required for the equipment to become out-moded. Air conditioning, particularly, would probably suffer more from obsolescence in small plants than in large establishments. In addition the obsolescence of the building or property in which the equip ment is installed may have a similar effect upon the equipment.