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To: A. Pole; Willie Green
Before the fix it was worth very little. After the fix it has value of couple hundred dollars. Was this value added during the repair or not?

As another example, you are using a piece of equiptment to produce goods. I come along and instruct you in how to use the equiptment better, so that your output of goods per hour increases by 30%. Did my service increase the value of the equiptment to you? Obviously. Was this value added by the service?

232 posted on 06/27/2003 5:52:52 PM PDT by SauronOfMordor (Java/C++/Unix/Web Developer looking for next gig)
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To: SauronOfMordor
Did my service increase the value of the equiptment to you? Obviously. Was this value added by the service?

It depends on whether or not you made a physical alteration to the equipment.
If you merely made an adjustment, there is no value added.
Value is determined by supply and demand in the market.
There are only two ways of determining this for equipment that you already own: determining the cost of replacement with an identical piece of equipment or determining the resale price you would recieve from selling the equipment.

234 posted on 06/27/2003 6:26:19 PM PDT by Willie Green (Go Pat Go!!!)
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