CAPITAL-GOODS AS A FACTOR IN PRODUCTION 



301 



at the rate of from 10 to 12 per cent, but it is found that the machine 

 will last much longer than eight or ten years. On the farms studied, 

 many machines from twelve to sixteen years old are in use and appar- 

 ently have considerable usefulness left. 



Table XI shows the annual rates of depreciation of farm machinery 

 which have been computed from inventories showing the original 

 value, the years in use, and the present value of each machine. This 

 takes account of the amount of work done and repairs during the 

 year, present condition, and apparent future usefulness of the 

 machine, as well as possible auction or exchange value. The annual 

 depreciation in dollars thus obtained, divided by the average 

 original investment, gives the annual rate of depreciation in 

 percentage form. 



TABLE XI 



ANNUAL DEPRECIATION OF FARM MACHINERY EXPRESSED IN PERCENTAGES 



