Excerpt from The Determination of Equitable Rates for Supplying Water to Municipalities<br/><br/>What fair rates should include A. Operatiny Expenses. B. Taxes. C. Depreciation General Discussion. (b) Three Methods of Calculating Depreciation. Renewals versus Depreciation. Average Life of Plant. (1) Compound Interest Sinking Fund Method. (2) Direct Method without use of Interest. 6 What the Depreciation Fund Should Not Include. D. A Fair Rate of Return or Interest on Plant. Pure Interest. (a) Influences Affecting Rate of Interest.
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