The formula used in the calculations is:
\[ \text{ACV} = \text{purchase price} \times \frac{\text{expected life} - \text{current life}}{\text{expected life}} \]
This calculator computes the actual cash value (ACV) of an asset based on the input values of purchase price, expected life, and current life.
Let's assume the following:
Calculate the actual cash value (ACV):
\[ \text{ACV} = 250,000 \times \frac{10 - 3}{10} = 250,000 \times 0.7 = 175,000 \]
Therefore, the actual cash value (ACV) of the car is $175,000.
