Use the check box labeled “Check here to apply all depreciation % to Replacement Cost New” on the Cost Adjustments screen to indicate how to apply the depreciation percentages as follows:
Checked: Check this box if you want all depreciation percentages applied to the Replacement Cost New.
Unchecked: If you do not check this box, Segregated Estimator subtracts physical depreciation from the Replacement Cost New, then multiplies functional depreciation percentage by the result. It then subtracts the functional depreciation from this value and multiplies the external depreciation percentage by that result.
Example: The following illustrates the calculations with and without this box checked, assuming each depreciation percentage is 10%:
Checked Not Checked
Replacement Cost New $100,000 $100,000
Physical & Functional Depreciation (10%) 10,000 10,000
Subtotal 90,000 90,000
Additional Functional Depreciation (10%) 10,000 9,000
Subtotal 80,000 81,000
External Depreciation (10%) 10,000 8,100
Depreciated Cost 70,000 72,900