Apply All Percentages to RCN

Click this check box if you want all depreciation percentages applied to the Replacement Cost New. If you do not check this box, Residential 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. 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 Depreciation (10%)
10,000
10,000
RCN – Physical
90,000
90,000
Functional Depreciation (10%)
10,000
9,000
RCN – Physical – Functional
80,000
81,000
External Depreciation (10%)
10,000
8,100
Depreciated Cost
70,000
72,900