Motor Road Transport For Commercial Purposes
(Liquid Fuel, Steam, Electricity)

INTEREST ON CAPITAL EXPENDITURE 139 15 Years : 12| per cent. Depreciation Value of vehicle at end of : Depreciation at 12|% Interest at 6% £ £ £ £ lst 1,000-125 = 875 125 60 2nd 875-109 == 766 109 52 3rd 766- 96 670 96 46 4th 670- 84 — 586 84 40 5th 586- 73 = 513 73 35 6th 513- 64 449 64 31 7th 449- 56 = 393 56 27 8th 393- 49 == 344 49 24 9th 344- 43 — 301 43 21 lOth 301- 38 = 263 38 18 llth 263- 33 = 230 33 16 12th 230- 29 — 201 29 14 13th 201- 25 = 176 25 12 14th 176- 22 = 154 22 11 15th 154- 19 135 19 9 P35 = “ scrap ” price at end of 15 years. The above scrap prices need not be considered unduly optimistic, since the life of a vehicle is almost entirely determined, not by mechanical condition, which is accounted for under repair and renewal charges, but by out-of-dateness. It has not, therefore, been considered necessary to depreciate below that rate in any case.